Williams-Sonoma, Inc. Announces Fourth Quarter and Fiscal Year 2012 Results Diluted EPS Increases 15% to $1.34 in Fourth Quarter 2012
Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for
the fourth quarter of fiscal 2012 (“Q4 12”) and fiscal year ended
February 3, 2013 (“FY 12”). Q4 12 included 14 weeks versus 13 weeks in
the fourth quarter of fiscal 2011 ended January 29, 2012 (“Q4 11”). FY
12 included 53 weeks versus 52 weeks in the fiscal year ended January
29, 2012 (“FY 11”).
RELEASE HIGHLIGHTS
-
Q4 12 diluted earnings per share (“EPS”) grew 15% to $1.34.
-
Q4 12 net revenues grew to $1.406 billion versus $1.268 billion in Q4
11 with comparable brand revenue growth of 4.0%.
-
FY 12 was a 53-week year. This additional week in Q4 12 contributed
approximately $70 million in net revenues and an estimated $0.07
benefit to EPS.
-
FY 12 EPS grew 14% to $2.54. Excluding unusual business events,
non-GAAP EPS increased 15% to $2.58.
-
FY 12 net revenues grew to $4.043 billion versus $3.721 billion in FY
11 with comparable brand revenue growth of 6.1%.
-
Authorized a new three-year $750 million stock repurchase program.
-
Increased quarterly dividend 41% to $0.31.
Laura Alber, President and Chief Executive Officer, commented, “Today’s
announcements reflect the power of our multi-channel, multi-brand
operating model and confirm our confidence in the growth potential and
cash-generating ability of our brands as we look forward to 2013 and
beyond. We finished 2012 above our expectations, and our strategies for
2013 are strong. We are pleased that we are able to significantly
escalate our commitment to return excess cash to stockholders through a
balanced program of share repurchases and dividend increases.”
Alber continued, “Q4 reflected the progress we have made all year in
delivering against the commitments we have set for ourselves. Revenues
and EPS again reached new levels in 2012. We drove these results while
simultaneously investing in our strategic growth initiatives, including
global expansion. Our portfolio of brands and our ability to generate
new businesses provide stability as trends fluctuate between the
different merchandise sectors in which we operate. Likewise, our
multiple marketing and sales channels provide us competitive advantages
in meeting our customers’ changing needs as shopping patterns continue
to evolve as to when, where, and in what format purchase decisions are
made.”
Alber concluded, “As we look forward to 2013 and beyond, we continue to
see opportunities to grow our existing brands, build new ones, and
expand to new geographies, including Australia, where we will be opening
our first company-operated stores outside North America this May. During
fiscal 2013, we expect to grow annual revenues to between $4.20 billion
and $4.28 billion and EPS to the range of $2.65 to $2.75. Over the next
three years, we expect revenue growth to be in the mid to high
single-digits and EPS growth to be in the low double-digits to
mid-teens. We remain excited about the opportunities ahead of us to more
than double the size of our business over the next decade while
returning cash to our shareholders and increasing shareholder value.”
Q4 12 RESULTS
Net revenues increased 10.9% to $1.406 billion in Q4 12 from $1.268
billion in Q4 11. On a comparable-weeks basis, net revenues grew 4.9%.
Comparable brand revenue growth in Q4 12 increased 4.0% on top of 6.6%
in Q4 11 as shown in the table below:
Fourth Quarter Comparable Brand Revenue Growth by Concept*
|
|
|
|
|
|
|
|
Q4 12
|
|
Q4 11
|
Pottery Barn
|
|
4.0
|
%
|
|
11.3
|
%
|
Williams-Sonoma**
|
|
(1.6
|
%)
|
|
(1.7
|
%)
|
Pottery Barn Kids
|
|
7.7
|
%
|
|
6.4
|
%
|
West Elm
|
|
19.1
|
%
|
|
34.5
|
%
|
PBteen
|
|
6.4
|
%
|
|
0.7
|
%
|
Total
|
|
4.0
|
%
|
|
6.6
|
%
|
*
|
See the company’s 10-K and 10-Q filings for the definition of
comparable brand revenue growth.
|
**
|
Williams-Sonoma excludes net revenues from Williams-Sonoma Home
(“WSH”) merchandise. Including WSH, comparable brand revenue
growth for Williams-Sonoma was (1.7%) in Q4 12 and (2.3%) in Q4
11. (WSH net revenues are included in the total.)
|
|
|
Direct-to-customer (“DTC”) net revenues in Q4 12 increased 19.3% to $634
million from $531 million in Q4 11. On a comparable-weeks basis, net
revenues grew 11.0% with increases across all brands. This growth was
primarily led by Pottery Barn, West Elm, Williams-Sonoma and Pottery
Barn Kids. E-commerce net revenues increased 24.0% to $576 million in Q4
12 from $465 million in Q4 11. On a comparable-weeks basis, e-commerce
net revenues grew 15.5%.
Retail net revenues in Q4 12 increased 4.9% to $773 million from $737
million in Q4 11. On a comparable-weeks basis, net revenues grew 0.3%,
driven primarily by West Elm and our international franchise operations,
partially offset by a decrease in Williams-Sonoma. Retail leased square
footage increased 0.6% from the end of Q4 11. Comparable store sales in
Q4 12 decreased 0.4% versus an increase of 1.1% in Q4 11.
Operating margin in Q4 12 was 15.0% versus 15.6% in Q4 11:
-
Gross margin was 41.3%, equal to last year.
-
Selling, general and administrative (“SG&A”) expenses were $370
million or 26.3% of net revenues versus $326 million or 25.7% in Q4
11. Included in the 60 basis point increase were asset impairment
charges and the planned incremental investments to support our
e-commerce, global expansion and business development growth
strategies.
The effective income tax rate in Q4 12 was 36.5% versus 37.9% in Q4 11,
reflecting certain favorable income tax resolutions and credits.
EPS increased 15% from $1.17 in Q4 11 to $1.34 in Q4 12, which included
an approximate $0.07 benefit from the additional week.
FY 12 RESULTS
Net revenues increased 8.7% to $4.043 billion in FY 12 from $3.721
billion in FY 11. On a comparable-weeks basis, net revenues grew 6.6%.
Comparable brand revenue growth in FY 12 increased 6.1% on top of 7.3%
in FY 11 as shown in the table below:
Fiscal Year Net Revenues and Comparable Brand Revenue Growth by
Concept
|
|
|
|
|
|
|
|
Net Revenues (millions)
|
|
Comparable Brand Revenue Growth
|
|
|
FY 12 (53 weeks)
|
|
FY 11 (52 weeks)
|
|
FY 12
|
|
FY 11
|
Pottery Barn
|
|
$
|
1,753
|
|
|
$
|
1,601
|
|
|
8.5
|
%
|
|
7.6
|
%
|
Williams-Sonoma*
|
|
$
|
981
|
|
|
$
|
994
|
|
|
(1.1
|
%)
|
|
0.0
|
%
|
Pottery Barn Kids
|
|
$
|
558
|
|
|
$
|
522
|
|
|
5.6
|
%
|
|
7.4
|
%
|
West Elm
|
|
$
|
430
|
|
|
$
|
336
|
|
|
17.4
|
%
|
|
30.3
|
%
|
PBteen
|
|
$
|
220
|
|
|
$
|
212
|
|
|
1.7
|
%
|
|
7.4
|
%
|
Other
|
|
$
|
101
|
|
|
$
|
56
|
|
|
N/A
|
|
|
N/A
|
|
Total
|
|
$
|
4,043
|
|
|
$
|
3,721
|
|
|
6.1
|
%
|
|
7.3
|
%
|
*
|
Williams-Sonoma comparable brand revenue growth excludes net
revenues from WSH merchandise. Including WSH, comparable brand
revenue growth for Williams-Sonoma was (1.7%) in FY 12 and (0.3%)
in FY 11. (WSH net revenues are included in the total.)
|
|
|
DTC net revenues in FY 12 increased 14.5% to $1.869 billion versus
$1.633 billion in FY 11. On a comparable-weeks basis, net revenues grew
11.8% with increases across all brands. This growth was primarily led by
Pottery Barn, West Elm, Williams-Sonoma and Pottery Barn Kids.
E-commerce net revenues increased 17.4% to $1.656 billion in FY 12 from
$1.410 billion in FY 11. On a comparable-weeks basis, e-commerce net
revenues grew 14.7%. DTC net revenues generated 46% of total company net
revenues in FY 12 versus 44% in FY 11.
Retail net revenues in FY 12 increased 4.1% to $2.173 billion versus
$2.088 billion in FY 11. On a comparable-weeks basis, net revenues grew
2.5%, primarily driven by West Elm and Pottery Barn, partially offset by
a decrease in Williams-Sonoma. Comparable store sales in FY 12 increased
2.3% versus 3.5% in FY 11.
Operating margin, including unusual business events, in FY 12 was 10.1%
versus 10.3% in FY 11. Excluding unusual business events, non-GAAP
operating margin in FY 12 equaled last year at 10.3%:
-
Gross margin increased 20 basis points to 39.4% from 39.2% in FY 11.
-
SG&A expenses, including unusual business events, were $1.183 billion
or 29.3% of net revenues versus $1.078 billion or 29.0% in FY 11.
Excluding the 20 basis point impact related to unusual business events
in FY 12 and the 10 basis point impact related to unusual business
events in FY 11, non-GAAP SG&A expenses were $1.176 billion or 29.1%
versus $1.075 billion or 28.9% in FY 11. Included in the 20 basis
point increase were asset impairment charges and the planned
incremental investments to support our e-commerce, global expansion
and business development growth strategies.
The effective income tax rate in FY 12 was 37.4% versus 37.9% in FY 11,
reflecting certain favorable income tax resolutions and credits.
EPS increased 14% from $2.22 in FY 11 to $2.54 in FY 12. Excluding
unusual business events, non-GAAP EPS in FY 12 increased 15% from $2.24
in FY 11 to $2.58. FY 12 EPS included the approximate $0.07 benefit from
the 53rd week.
Merchandise inventories at the end of FY 12 increased 15.6% to $640
million from $553 million at the end of FY 11.
STOCK REPURCHASE PROGRAM AND DIVIDEND INCREASE
As announced in a separate release today, our Board of Directors has
authorized a new $750 million stock repurchase program that we intend to
execute over the next three years and a 41% increase in our quarterly
cash dividend to $0.31 per share. We also repurchased 683,956 shares of
common stock during Q4 12 for a total of 3,962,034 shares or $155
million repurchased during FY 12 and a total of 5,978,162 shares or $225
million under the previous program authorized in January 2012.
FY 13 FINANCIAL GUIDANCE
-
First Quarter 2013 Guidance (13 weeks)
-
Net revenues in Q1 13 are expected to be in the range of $850 million
to $870 million.
-
Comparable brand revenue growth in Q1 13 is expected to be in the
range of 4% to 6%.
-
Diluted EPS in Q1 13 is expected to be in the range of $0.33 to $0.36.
-
Fiscal Year 2013 Guidance (52 weeks)
|
|
|
|
|
FY 13
GUID
|
Total Net Revenues (millions)
|
|
$4,200 - $4,280
|
Comparable Brand Revenue Growth
(52-week vs. 52-week)
|
|
4 - 6 %
|
Operating Margin
|
|
10.0 - 10.3 %
|
Diluted EPS
|
|
$2.65 - $2.75
|
Income Tax Rate
|
|
38.2 - 38.6 %
|
Capital Spending (millions)
|
|
$200 - $220
|
Depreciation and Amortization (millions)
|
|
$150 - $160
|
-
Fiscal Year 2013 Store Opening and Closing Guidance by Retail
Concept
|
|
|
|
|
FY 12 ACT
|
|
FY 13
GUID
|
Retail Concept
|
|
Total
|
|
New
|
|
Close
|
|
End
|
Williams-Sonoma
|
|
253
|
|
8
|
|
|
(15
|
)
|
|
246
|
Pottery Barn
|
|
192
|
|
7
|
|
|
(4
|
)
|
|
195
|
Pottery Barn Kids
|
|
84
|
|
4
|
|
|
(4
|
)
|
|
84
|
West Elm
|
|
48
|
|
10
|
|
|
(1
|
)
|
|
57
|
Rejuvenation
|
|
4
|
|
-
|
|
|
-
|
|
|
4
|
Total
|
|
581
|
|
29
|
|
|
(24
|
)
|
|
586
|
|
|
|
|
|
|
|
|
|
|
|
CONFERENCE CALL AND WEBCAST INFORMATION
Williams-Sonoma, Inc. will host a live conference call today, March 19,
2013, at 2:00 P.M. (PT). The call, hosted by Laura Alber, President and
Chief Executive Officer, will be open to the general public via a live
webcast and can be accessed through the Internet at www.williams-sonomainc.com/webcast.
A replay of the webcast will be available at www.williams-sonomainc.com/webcast.
SEC REGULATION G -- NON-GAAP INFORMATION
This press release includes non-GAAP SG&A, operating margin and diluted
EPS. These non-GAAP financial measures exclude the impact of employee
separation charges in FY 12 and the impact of asset impairment and early
lease termination charges for underperforming retail stores in FY 11. We
have reconciled these non-GAAP financial measures with the most directly
comparable GAAP financial measures in the text of this release and in
Exhibit 1. We believe that these non-GAAP financial measures provide
meaningful supplemental information for investors regarding the
performance of our business and facilitate a meaningful evaluation of
our quarterly and FY 12 diluted EPS actual results and FY 13 guidance on
a comparable basis with our quarterly and FY 11 results. Our management
uses these non-GAAP financial measures in order to have comparable
financial results to analyze changes in our underlying business from
quarter to quarter. These non-GAAP measures should be considered as a
supplement to, and not as a substitute for, or superior to, financial
measures calculated in accordance with GAAP.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve
risks and uncertainties, as well as assumptions that, if they do not
fully materialize or prove incorrect, could cause our results to differ
materially from those expressed or implied by such forward-looking
statements. Such forward-looking statements include statements relating
to: our growth potential; our confidence in the cash-generating ability
of our brands; our desire to return excess cash to stockholders; the
stability provided by our portfolio of brands; our ability to generate
new business; the competitive advantage we have from multiple marketing
and sales channels; our growth strategies, including our ability to
double the size of our business, drive revenue growth and increase EPS;
our global expansion; our future financial guidance, including Q1 13 and
fiscal year 2013 guidance; payment of our increased quarterly cash
dividend; our three year stock repurchase program; our proposed store
openings and closures; and our beliefs regarding non-GAAP financial
measures.
The risks and uncertainties that could cause our results to differ
materially from those expressed or implied by such forward-looking
statements include: accounting adjustments as we close our books for Q4
12 and as audited year-end financial statements are prepared; recent
changes in general economic conditions, and the impact on consumer
confidence and consumer spending; new interpretations of or changes to
current accounting rules; our ability to anticipate consumer preferences
and buying trends; dependence on timely introduction and customer
acceptance of our merchandise; changes in consumer spending based on
weather, political, competitive and other conditions beyond our control;
delays in store openings; competition from companies with concepts or
products similar to ours; timely and effective sourcing of merchandise
from our foreign and domestic vendors and delivery of merchandise
through our supply chain to our stores and customers; effective
inventory management; our ability to manage customer returns; successful
catalog management, including timing, sizing and merchandising;
uncertainties in e-marketing, infrastructure and regulation;
multi-channel and multi-brand complexities; our ability to introduce new
brands and brand extensions; dependence on external funding sources for
operating capital; disruptions in the financial markets; our ability to
control employment, occupancy and other operating costs; our ability to
improve our systems and processes; changes to our information technology
infrastructure; general political, economic and market conditions and
events, including war, conflict or acts of terrorism; and other risks
and uncertainties described more fully in our public announcements,
reports to stockholders and other documents filed with or furnished to
the SEC, including our Annual Report on Form 10-K for the fiscal year
ended January 29, 2012, and all subsequent quarterly reports on Form
10-Q and current reports on Form 8-K. All forward-looking statements in
this press release are based on information available to us as of the
date hereof, and we assume no obligation to update these forward-looking
statements.
ABOUT WILLIAMS-SONOMA, INC.
Williams-Sonoma, Inc. is a specialty retailer of high-quality products
for the home. These products, representing eight distinct merchandise
strategies – Williams-Sonoma (cookware
and wedding
registry), Pottery Barn (furniture
and wedding
registry), Pottery Barn Kids (kids’
furniture and baby
registry), PBteen (girls’
bedding and boys’
bedding), West Elm (modern
furniture and room
decor), Williams-Sonoma Home (luxury
furniture and decorative
accessories), Rejuvenation (lighting
and hardware)
and Mark and Graham (personalized
gifts and gifts
for the home) – are marketed through seven e-commerce websites,
eight direct mail catalogs and 581 stores. Williams-Sonoma, Inc.
currently operates in the United States and Canada, offers international
shipping to customers worldwide, and franchises its brands in Bahrain,
the Kingdom of Saudi Arabia, Kuwait, and the United Arab Emirates.
|
WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS (UNAUDITED) FOURTEEN WEEKS
ENDED FEBRUARY 3, 2013 AND THIRTEEN WEEKS ENDED
JANUARY 29, 2012 (DOLLARS AND SHARES IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
|
|
|
|
2012
|
|
|
2011
|
|
|
|
(14 Weeks)
|
|
|
(13 Weeks)
|
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
$
|
|
Revenues
|
|
|
$
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct-to-customer net revenues
|
|
$
|
633,503
|
|
|
45.0
|
%
|
|
$
|
530,996
|
|
|
41.9
|
%
|
Retail net revenues
|
|
|
772,916
|
|
|
55.0
|
|
|
|
737,148
|
|
|
58.1
|
|
Net revenues
|
|
|
1,406,419
|
|
|
100.0
|
|
|
|
1,268,144
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
825,687
|
|
|
58.7
|
|
|
|
744,855
|
|
|
58.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
580,732
|
|
|
41.3
|
|
|
|
523,289
|
|
|
41.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
370,291
|
|
|
26.3
|
|
|
|
326,086
|
|
|
25.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
210,441
|
|
|
15.0
|
|
|
|
197,203
|
|
|
15.6
|
|
Interest (income), net
|
|
|
(261
|
)
|
|
-
|
|
|
|
(161
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
210,702
|
|
|
15.0
|
|
|
|
197,364
|
|
|
15.6
|
|
Income taxes
|
|
|
76,968
|
|
|
5.5
|
|
|
|
74,778
|
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
133,734
|
|
|
9.5
|
%
|
|
$
|
122,586
|
|
|
9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.36
|
|
|
|
|
|
$
|
1.19
|
|
|
|
|
Diluted
|
|
$
|
1.34
|
|
|
|
|
|
$
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
98,015
|
|
|
|
|
|
|
102,825
|
|
|
|
|
Diluted
|
|
|
99,949
|
|
|
|
|
|
|
105,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS (UNAUDITED) FIFTY-THREE WEEKS
ENDED FEBRUARY 3, 2013 AND FIFTY-TWO WEEKS ENDED
JANUARY 29, 2012 (DOLLARS AND SHARES IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FISCAL YEAR
|
|
|
2012
|
|
|
2011
|
|
|
|
(53 Weeks)
|
|
|
(52 Weeks)
|
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
$
|
|
Revenues
|
|
|
$
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct-to-customer net revenues
|
|
$
|
1,869,386
|
|
|
46.2
|
%
|
|
$
|
1,632,811
|
|
|
43.9
|
%
|
Retail net revenues
|
|
|
2,173,484
|
|
|
53.8
|
|
|
|
2,088,084
|
|
|
56.1
|
|
Net revenues
|
|
|
4,042,870
|
|
|
100.0
|
|
|
|
3,720,895
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
2,450,394
|
|
|
60.6
|
|
|
|
2,261,039
|
|
|
60.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
1,592,476
|
|
|
39.4
|
|
|
|
1,459,856
|
|
|
39.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
1,183,313
|
|
|
29.3
|
|
|
|
1,078,124
|
|
|
29.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
409,163
|
|
|
10.1
|
|
|
|
381,732
|
|
|
10.3
|
|
Interest (income), net
|
|
|
(793
|
)
|
|
-
|
|
|
|
(98
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
409,956
|
|
|
10.1
|
|
|
|
381,830
|
|
|
10.3
|
|
Income taxes
|
|
|
153,226
|
|
|
3.8
|
|
|
|
144,899
|
|
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
256,730
|
|
|
6.4
|
%
|
|
$
|
236,931
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.59
|
|
|
|
|
|
$
|
2.27
|
|
|
|
|
Diluted
|
|
$
|
2.54
|
|
|
|
|
|
$
|
2.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
99,266
|
|
|
|
|
|
|
104,352
|
|
|
|
|
Diluted
|
|
|
101,051
|
|
|
|
|
|
|
106,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED) (DOLLARS IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 3, 2013
|
|
|
|
|
|
|
|
|
|
January 29, 2012
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
$
|
424,555
|
|
|
|
|
|
|
|
|
|
$
|
502,757
|
Restricted cash
|
|
|
|
|
|
|
|
|
|
|
16,055
|
|
|
|
|
|
|
|
|
|
|
14,732
|
Accounts receivable, net
|
|
|
|
|
|
|
|
|
|
|
62,985
|
|
|
|
|
|
|
|
|
|
|
45,961
|
Merchandise inventories, net
|
|
|
|
|
|
|
|
|
|
|
640,024
|
|
|
|
|
|
|
|
|
|
|
553,461
|
Prepaid catalog expenses
|
|
|
|
|
|
|
|
|
|
|
37,231
|
|
|
|
|
|
|
|
|
|
|
34,294
|
Prepaid expenses
|
|
|
|
|
|
|
|
|
|
|
26,339
|
|
|
|
|
|
|
|
|
|
|
24,188
|
Deferred income taxes, net
|
|
|
|
|
|
|
|
|
|
|
99,764
|
|
|
|
|
|
|
|
|
|
|
91,744
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
9,819
|
|
|
|
|
|
|
|
|
|
|
9,229
|
Total current assets
|
|
|
|
|
|
|
|
|
|
|
1,316,772
|
|
|
|
|
|
|
|
|
|
|
1,276,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
|
|
|
|
|
|
812,037
|
|
|
|
|
|
|
|
|
|
|
734,672
|
Non-current deferred income taxes, net
|
|
|
|
|
|
|
|
|
|
|
12,398
|
|
|
|
|
|
|
|
|
|
|
12,382
|
Other assets, net
|
|
|
|
|
|
|
|
|
|
|
46,472
|
|
|
|
|
|
|
|
|
|
|
37,418
|
Total assets
|
|
|
|
|
|
|
|
|
|
$
|
2,187,679
|
|
|
|
|
|
|
|
|
|
$
|
2,060,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
|
$
|
259,162
|
|
|
|
|
|
|
|
|
|
$
|
218,329
|
Accrued salaries, benefits and other
|
|
|
|
|
|
|
|
|
|
|
120,632
|
|
|
|
|
|
|
|
|
|
|
111,774
|
Customer deposits
|
|
|
|
|
|
|
|
|
|
|
207,415
|
|
|
|
|
|
|
|
|
|
|
190,417
|
Income taxes payable
|
|
|
|
|
|
|
|
|
|
|
41,849
|
|
|
|
|
|
|
|
|
|
|
22,435
|
Current portion of long-term debt
|
|
|
|
|
|
|
|
|
|
|
1,724
|
|
|
|
|
|
|
|
|
|
|
1,795
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
26,345
|
|
|
|
|
|
|
|
|
|
|
27,049
|
Total current liabilities
|
|
|
|
|
|
|
|
|
|
|
657,127
|
|
|
|
|
|
|
|
|
|
|
571,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent and lease incentives
|
|
|
|
|
|
|
|
|
|
|
171,198
|
|
|
|
|
|
|
|
|
|
|
181,762
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
3,753
|
|
|
|
|
|
|
|
|
|
|
5,478
|
Other long-term obligations
|
|
|
|
|
|
|
|
|
|
|
46,463
|
|
|
|
|
|
|
|
|
|
|
46,537
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
|
878,541
|
|
|
|
|
|
|
|
|
|
|
805,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
1,309,138
|
|
|
|
|
|
|
|
|
|
|
1,255,262
|
Total liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
$
|
2,187,679
|
|
|
|
|
|
|
|
|
|
$
|
2,060,838
|
ADDITIONAL INFORMATION
|
|
|
Store Count
|
|
Average Leased Square Footage Per Store
|
Retail Concept
|
|
October 28, 2012
|
|
Openings
|
|
Closings
|
|
February 3, 2013
|
|
January 29, 2012
|
|
February 3, 2013
|
|
January 29, 2012
|
Williams-Sonoma
|
|
259
|
|
2
|
|
(8
|
)
|
|
253
|
|
259
|
|
6,600
|
|
6,500
|
Pottery Barn
|
|
193
|
|
2
|
|
(3
|
)
|
|
192
|
|
194
|
|
13,900
|
|
13,800
|
Pottery Barn Kids
|
|
83
|
|
2
|
|
(1
|
)
|
|
84
|
|
83
|
|
8,100
|
|
8,200
|
West Elm
|
|
45
|
|
4
|
|
(1
|
)
|
|
48
|
|
37
|
|
14,900
|
|
17,100
|
Rejuvenation
|
|
4
|
|
-
|
|
-
|
|
|
4
|
|
3
|
|
13,200
|
|
17,200
|
Total
|
|
584
|
|
10
|
|
(13
|
)
|
|
581
|
|
576
|
|
9,900
|
|
10,000
|
|
|
|
|
|
|
|
|
|
Total Store Square Footage
|
|
|
|
|
|
|
October 28, 2012
|
|
|
|
|
|
|
February 3, 2013
|
|
January 29, 2012
|
|
|
|
|
Total store selling square footage
|
|
3,566,000
|
|
|
|
|
|
|
3,548,000
|
|
3,535,000
|
|
|
|
|
Total store leased square footage
|
|
5,813,000
|
|
|
|
|
|
|
5,778,000
|
|
5,743,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) FIFTY-THREE WEEKS
ENDED FEBRUARY 3, 2013 AND FIFTY-TWO WEEKS ENDED
JANUARY 29, 2012 (DOLLARS IN THOUSANDS)
|
|
|
|
|
|
|
|
FISCAL YEAR
|
|
|
2012
|
|
2011
|
|
|
(53 Weeks)
|
|
(52 Weeks)
|
Cash flows from operating activities
|
|
|
|
|
Net earnings
|
|
$
|
256,730
|
|
|
$
|
236,931
|
|
|
|
|
|
|
Adjustments to reconcile net earnings to net cash
|
|
|
|
|
provided by (used in) operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
134,453
|
|
|
|
130,553
|
|
Loss on sale/disposal of assets
|
|
|
2,317
|
|
|
|
2,040
|
|
Impairment of assets
|
|
|
6,071
|
|
|
|
840
|
|
Amortization of deferred lease incentives
|
|
|
(26,694
|
)
|
|
|
(27,547
|
)
|
Deferred income taxes
|
|
|
(9,029
|
)
|
|
|
14,210
|
|
Tax benefit from exercise of stock-based awards
|
|
|
12,725
|
|
|
|
8,515
|
|
Excess tax benefit from exercise of stock-based awards
|
|
|
(12,683
|
)
|
|
|
(8,021
|
)
|
Stock-based compensation expense
|
|
|
31,042
|
|
|
|
24,336
|
|
Other
|
|
|
-
|
|
|
|
17
|
|
Changes in:
|
|
|
|
|
Accounts receivable
|
|
|
(16,408
|
)
|
|
|
(4,763
|
)
|
Merchandise inventories
|
|
|
(85,981
|
)
|
|
|
(34,853
|
)
|
Prepaid catalog expenses
|
|
|
(2,937
|
)
|
|
|
2,559
|
|
Prepaid expenses and other assets
|
|
|
(12,204
|
)
|
|
|
(2,065
|
)
|
Accounts payable
|
|
|
22,461
|
|
|
|
(21,154
|
)
|
Accrued salaries, benefits and other current and long-term
liabilities
|
|
|
9,147
|
|
|
|
(16,030
|
)
|
Customer deposits
|
|
|
16,962
|
|
|
|
(2,242
|
)
|
Deferred rent and lease incentives
|
|
|
18,803
|
|
|
|
7,570
|
|
Income taxes payable
|
|
|
19,352
|
|
|
|
(19,562
|
)
|
Net cash provided by operating activities
|
|
|
364,127
|
|
|
|
291,334
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property and equipment
|
|
|
(205,404
|
)
|
|
|
(130,353
|
)
|
Restricted cash deposits
|
|
|
(1,323
|
)
|
|
|
(2,220
|
)
|
Proceeds from sale of assets
|
|
|
182
|
|
|
|
81
|
|
Proceeds from insurance reimbursement
|
|
|
115
|
|
|
|
751
|
|
Acquisition of Rejuvenation Inc., net of cash received
|
|
|
-
|
|
|
|
(25,363
|
)
|
Other
|
|
|
(385
|
)
|
|
|
(600
|
)
|
Net cash used in investing activities
|
|
|
(206,815
|
)
|
|
|
(157,704
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Repurchase of common stock
|
|
|
(155,080
|
)
|
|
|
(194,429
|
)
|
Payment of dividends
|
|
|
(87,847
|
)
|
|
|
(68,877
|
)
|
Tax withholdings related to stock-based awards
|
|
|
(18,637
|
)
|
|
|
(11,656
|
)
|
Proceeds from exercise of stock-based awards
|
|
|
14,637
|
|
|
|
9,614
|
|
Excess tax benefit from exercise of stock-based awards
|
|
|
12,683
|
|
|
|
8,021
|
|
Repayments of long-term obligations
|
|
|
(1,796
|
)
|
|
|
(1,626
|
)
|
Other
|
|
|
(405
|
)
|
|
|
(86
|
)
|
Net cash used in financing activities
|
|
|
(236,445
|
)
|
|
|
(259,039
|
)
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents
|
|
|
931
|
|
|
|
(237
|
)
|
Net decrease in cash and cash equivalents
|
|
|
(78,202
|
)
|
|
|
(125,646
|
)
|
Cash and cash equivalents at beginning of year
|
|
|
502,757
|
|
|
|
628,403
|
|
Cash and cash equivalents at end of year
|
|
$
|
424,555
|
|
|
$
|
502,757
|
|
|
|
|
|
|
|
|
|
|
Exhibit 1
|
Reconciliation of Q4 12 and Q4 11 Actual GAAP to Non-GAAP
Operating Margin By Segment*
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
DTC
|
|
RETAIL
|
|
UNALLOCATED
|
|
TOTAL
|
|
|
Q4 12
|
|
Q4 11
|
|
Q4 12
|
|
Q4 11
|
|
Q4 12
|
|
Q4 11
|
|
Q4 12
|
|
Q4 11
|
Net Revenues
|
|
$
|
634
|
|
$
|
531
|
|
$
|
773
|
|
$
|
737
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1,406
|
|
$
|
1,268
|
GAAP Operating Income/(Expense)
|
|
|
145
|
|
|
117
|
|
|
146
|
|
|
149
|
|
|
(80)
|
|
|
(69)
|
|
|
210
|
|
|
197
|
GAAP Operating Margin
|
|
|
22.9%
|
|
|
22.0%
|
|
|
18.9%
|
|
|
20.2%
|
|
|
(5.7%)
|
|
|
(5.4%)
|
|
|
15.0%
|
|
|
15.6%
|
Unusual Business Events (Note 2)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
Non-GAAP Operating Income/(Expense) Excluding Unusual Business Events
|
|
$
|
145
|
|
$
|
117
|
|
$
|
146
|
|
$
|
150
|
|
$
|
(80)
|
|
$
|
(69)
|
|
$
|
210
|
|
$
|
198
|
Non-GAAP Operating Margin
|
|
|
22.9%
|
|
|
22.0%
|
|
|
18.9%
|
|
|
20.3%
|
|
|
(5.7%)
|
|
|
(5.4%)
|
|
|
15.0%
|
|
|
15.6%
|
*
|
See the company’s 10-K and 10-Q filings for additional information
on segment reporting and for the definition of Operating
Income/(Expense) and Operating Margin.
|
|
|
Reconciliation of Fiscal Year Actual GAAP to Non-GAAP
Operating Margin By Segment*
|
(Dollars in millions)
|
|
|
|
|
|
DTC
|
|
RETAIL
|
|
UNALLOCATED
|
|
TOTAL
|
|
|
FY 12
|
|
FY 11
|
|
FY 12
|
|
FY 11
|
|
FY 12
|
|
FY 11
|
|
FY 12
|
|
FY 11
|
Net Revenues
|
|
$
|
1,869
|
|
$
|
1,633
|
|
$
|
2,173
|
|
$
|
2,088
|
|
$
|
-
|
|
$
|
-
|
|
$
|
4,043
|
|
$
|
3,721
|
GAAP Operating Income/(Expense)
|
|
|
419
|
|
|
360
|
|
|
263
|
|
|
264
|
|
|
(273)
|
|
|
(242)
|
|
|
409
|
|
|
382
|
GAAP Operating Margin
|
|
|
22.4%
|
|
|
22.0%
|
|
|
12.1%
|
|
|
12.6%
|
|
|
(6.7%)
|
|
|
(6.5%)
|
|
|
10.1%
|
|
|
10.3%
|
Unusual Business Events (Notes 1 and 2)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
7
|
|
|
-
|
|
|
7
|
|
|
3
|
Non-GAAP Operating Income/(Expense) Excluding Unusual Business Events
|
|
$
|
419
|
|
$
|
360
|
|
$
|
263
|
|
$
|
267
|
|
$
|
(266)
|
|
$
|
(242)
|
|
$
|
416
|
|
$
|
385
|
Non-GAAP Operating Margin
|
|
|
22.4%
|
|
|
22.0%
|
|
|
12.1%
|
|
|
12.8%
|
|
|
(6.6%)
|
|
|
(6.5%)
|
|
|
10.3%
|
|
|
10.3%
|
*
|
See the company’s 10-K and 10-Q filings for additional information
on segment reporting and for the definition of Operating
Income/(Expense) and Operating Margin.
|
|
|
Reconciliation of FY 12 and FY 11 Actual GAAP to Non-GAAP Diluted
Earnings Per Share* (Totals rounded to the nearest cent
per diluted share)
|
|
|
|
|
|
Q1 12
ACT
|
|
Q2 12
ACT
|
|
Q3 12
ACT
|
|
Q4 12
ACT
|
|
Weighted Share Effect
|
|
FY 12
ACT
|
|
|
(13 Weeks)
|
|
(13 Weeks)
|
|
(13 Weeks)
|
|
(14 Weeks)
|
|
|
(53 Weeks)
|
2012 GAAP Diluted EPS
|
|
$0.30
|
|
$0.43
|
|
$0.49
|
|
$1.34
|
|
($0.02)
|
|
$2.54
|
Impact of Employee Separation Charges (Note 1)
|
|
$0.04
|
|
-
|
|
-
|
|
-
|
|
-
|
|
$0.04
|
2012 Non-GAAP Diluted EPS Excluding Unusual Business Events (Note
3)
|
|
$0.34
|
|
$0.43
|
|
$0.49
|
|
$1.34
|
|
($0.02)
|
|
$2.58
|
|
|
|
|
|
Q1 11
ACT
|
|
Q2 11
ACT
|
|
Q3 11
ACT
|
|
Q4 11
ACT
|
|
Weighted Share Effect
|
|
FY 11
ACT
|
|
|
(13 Weeks)
|
|
(13 Weeks)
|
|
(13 Weeks)
|
|
(13 Weeks)
|
|
|
(52 Weeks)
|
2011 GAAP Diluted EPS
|
|
$0.29
|
|
$0.37
|
|
$0.41
|
|
$1.17
|
|
($0.02)
|
|
$2.22
|
Impact of Asset Impairment and Early Lease Termination Charges for
Underperforming Retail Stores (Note 2)
|
|
$0.01
|
|
$0.00
|
|
$0.00
|
|
$0.01
|
|
-
|
|
$0.02
|
2011 Non-GAAP Diluted EPS Excluding Unusual Business Events (Note
3)**
|
|
$0.30
|
|
$0.37
|
|
$0.41
|
|
$1.17
|
|
($0.01)
|
|
$2.24
|
*
|
|
|
Due to the differences between quarterly share counts and the
year-to-date weighted average share count calculations and the
effect of quarterly rounding to the nearest cent per diluted share,
the year-to-date calculation of GAAP and non-GAAP diluted EPS may
not equal the sum of the quarters.
|
|
|
|
|
**
|
|
|
Due to rounding to the nearest cent per diluted share, totals may
not equal the sum of the line items in the table above.
|
|
|
|
|
Note 1:
|
|
|
Impact of Employee Separation Charges – During Q1 12, we incurred
charges of approximately $0.04 per diluted share or approximately 90
basis points of SG&A expenses and less than 10 basis points of gross
margin, primarily associated with the previously announced
retirement of our former Executive Vice President, Chief Operating
and Chief Financial Officer. For FY 12, we incurred total charges of
approximately $0.04 per diluted share, or approximately 20 basis
points of SG&A expenses and less than a 10 basis point impact to
gross margin. These charges were recorded within the unallocated
segment.
|
|
|
|
|
Note 2:
|
|
|
Impact of Asset Impairment and Early Lease Termination Charges for
Underperforming Retail Stores (FY 11) – During Q1 11, we incurred
charges associated with asset impairment and early lease
terminations of approximately $0.01 per diluted share or
approximately 20 basis points of SG&A expenses. During Q2 11, we
incurred charges associated with early lease terminations of
approximately $0.00 per diluted share, or less than 10 basis points
of SG&A expenses and less than a 10 basis point impact to gross
margin. During Q3 11, we incurred charges associated with early
lease terminations of approximately $0.00 per diluted share or less
than a 10 basis point impact to gross margin. For Q4 11, we incurred
charges associated with asset impairment and early lease
terminations of approximately $0.01 per diluted share, or less than
10 basis points of SG&A expenses and less than a 10 basis point
impact to gross margin. For FY 11, we incurred total charges
associated with asset impairment and early lease terminations of
approximately $0.02 per diluted share, or approximately 10 basis
points of SG&A expenses and less than a 10 basis point impact to
gross margin. All of these charges were recorded within the retail
segment.
|
|
|
|
|
Note 3:
|
|
|
SEC Regulation G – Non-GAAP Information – This table includes one
non-GAAP financial measure, Diluted EPS Excluding Unusual Business
Events. We believe that this non-GAAP financial measure provides
meaningful supplemental information for investors regarding the
performance of our business and facilitates a meaningful evaluation
of our quarterly and FY 12 diluted EPS actual results and guidance
on a comparable basis with our quarterly and FY 11 actual results.
Our management uses this non-GAAP financial measure in order to have
comparable financial results to analyze changes in our underlying
business from quarter to quarter. This non-GAAP financial measure
should be considered as a supplement to, and not as a substitute
for, or superior to, financial measures calculated in accordance
with GAAP.
|
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