Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for
the 13 weeks ended August 4, 2013 (“Q2 13”) versus the 13 weeks ended
July 29, 2012 (“Q2 12”).
Q2 13 Results
-
Net revenues grew 12.3% to $982 million versus $874 million in Q2 12
with comparable brand revenue growth of 8.4%.
-
Operating margin was 8.0%, equal to Q2 12.
-
Diluted earnings per share (“EPS”) grew 14.0% to $0.49 compared to Q2
12.
-
Cash returned to stockholders totaled $120 million comprising $90
million in stock repurchases and $30 million in dividends.
Laura Alber, President and Chief Executive Officer commented, “Our
second quarter results demonstrate the strong demand for our brands and
the profitability of our multi-channel, multi-brand platform. We
generated a 12% increase in revenue and a 14% increase in diluted EPS
over last year. We achieved sales and profit levels that exceeded our
expectations while making investments in our growth objectives and in
the infrastructure to support them.”
Alber continued, “We are on track to achieve another record year of
revenue and deliver a double-digit increase in earnings per share. Due
to our performance year-to-date and our confidence in the remainder of
the year, we are raising our FY 2013 revenue guidance to a range of
$4.26 billion to $4.34 billion and our non-GAAP diluted EPS guidance to
a range of $2.69 to $2.79.”
Alber concluded, “Longer term, we remain confident in our ability to
continue to grow sales, maximize profitability and capture market share
as we build on our successes across brands and geographies. We are
looking forward to expanding our company-owned retail presence in
Australia and entering a new market in the United Kingdom later this
year. Additionally, in advancement of our global expansion objectives,
we are excited about today’s announcement of a multi-year franchise
agreement with Store Specialists, Inc. as the franchisee for our brands
in the Philippines.”
Comparable brand revenue growth in Q2 13 increased 8.4% on top of 7.4%
in Q2 12 as shown in the table below:
Second Quarter Comparable Brand Revenue Growth by Concept*
|
|
|
|
|
|
|
|
Q2 13
|
|
Q2 12
|
Pottery Barn
|
|
9.9
|
%
|
|
11.7
|
%
|
Williams-Sonoma
|
|
(0.4
|
%)
|
|
(1.5
|
%)
|
Pottery Barn Kids
|
|
8.2
|
%
|
|
3.8
|
%
|
West Elm
|
|
16.5
|
%
|
|
15.6
|
%
|
PBteen
|
|
16.3
|
%
|
|
0.8
|
%
|
Total
|
|
8.4
|
%
|
|
7.4
|
%
|
*
|
See the company’s 10-K and 10-Q filings for the definition of
comparable brand revenue growth.
|
|
|
Direct-to-customer (“DTC”) net revenues in Q2 13 increased 15.3% to $478
million from $414 million in Q2 12, primarily driven by Pottery Barn,
West Elm, PBteen and Pottery Barn Kids. DTC net revenues generated 49%
of total company net revenues in Q2 13, compared to 47% in Q2 12.
Retail net revenues in Q2 13 increased 9.7% to $505 million from $460
million in Q2 12, driven primarily by Pottery Barn, West Elm and our
international franchise operations, partially offset by a decrease in
Williams-Sonoma. Including three net new stores within Q2 13, retail
leased square footage increased 2% from the end of Q2 12.
Operating margin in Q2 13 was 8.0%, equal to Q2 12:
-
Gross margin decreased 70 basis points to 37.6% from 38.3% in Q2 12.
-
Selling, general and administrative (“SG&A”) expenses were $291
million or 29.6% of net revenues versus $264 million or 30.2% in Q2 12.
EPS in Q2 13 increased 14.0% to $0.49 from $0.43 in Q2 12.
Merchandise inventories increased 19.6% to $737 million versus $616
million at the end of Q2 12. Excluding the impact of additional
inventory in transit due to taking ownership of our inventory earlier in
the supply chain in Q2 13 versus Q2 12, merchandise inventories
increased 13.4% on a comparable basis.
STOCK REPURCHASE PROGRAM
During Q2 13, we repurchased 1.6 million shares of common stock at an
average cost of $55.66 per share and a total cost of approximately $90
million. As of August 4, 2013, $619 million remained under the
three-year $750 million stock repurchase program announced in March 2013.
FY 13 FINANCIAL GUIDANCE
-
Third Quarter 2013 Guidance (13 weeks)
-
Net revenues in the third quarter of fiscal 2013 (“Q3 13”) are
expected to be in the range of $1,020 million to $1,040 million.
-
Comparable brand revenue growth in Q3 13 is expected to be in the
range of 4% to 6%.
-
Diluted EPS in Q3 13 is expected to be in the range of $0.51 to $0.54.
-
Fiscal Year 2013 Guidance (52 weeks)
|
|
|
|
|
FY 13
GUID
|
Total Net Revenues (millions)
|
|
$4,260 - $4,340
|
Comparable Brand Revenue Growth
(52-week vs. 52-week)
|
|
4 - 6 %
|
Operating Margin
|
|
10.0 - 10.3 %
|
Non-GAAP Diluted EPS
|
|
$2.69 - $2.79
|
Income Tax Rate
|
|
38.0 - 38.5 %
|
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
|
|
|
|
|
|
Total
|
|
New
|
|
Close
|
|
End
|
Williams-Sonoma
|
|
253
|
|
7
|
|
(15
|
)
|
|
245
|
Pottery Barn
|
|
192
|
|
7
|
|
(5
|
)
|
|
194
|
Pottery Barn Kids
|
|
84
|
|
5
|
|
(7
|
)
|
|
82
|
West Elm
|
|
48
|
|
11
|
|
(1
|
)
|
|
58
|
Rejuvenation
|
|
4
|
|
-
|
|
-
|
|
|
4
|
Total
|
|
581
|
|
30
|
|
(28
|
)
|
|
583
|
|
|
|
|
|
|
|
|
|
|
CONFERENCE CALL AND WEBCAST INFORMATION
Williams-Sonoma, Inc. will host a live conference call today, August 28,
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 live
webcast and can be accessed 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 diluted EPS. This non-GAAP
financial measure excludes the impact of employee separation charges. We
have reconciled this non-GAAP financial measure with the most directly
comparable GAAP financial measure in Exhibit 1. 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 13 diluted EPS actual
results and FY 13 guidance on a comparable basis with our quarterly and
FY 12 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.
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 ability to maximize profitability and
capture market share; our global expansion; our future financial
guidance, including Q3 13 and FY 13 guidance; our three-year stock
repurchase program; and our proposed store openings and closures.
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 Q2
13; 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 February 3, 2013 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 e-commerce websites, direct
mail catalogs and 590 stores. Williams-Sonoma, Inc. currently operates
in the United States, Canada and Australia, offers international
shipping to customers worldwide, and has an unaffiliated franchisee that
operates 25 stores in the Middle East.
|
WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS (UNAUDITED) THIRTEEN WEEKS
ENDED AUGUST 4, 2013 AND JULY 29, 2012 (DOLLARS AND
SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
(13 Weeks)
|
|
|
|
|
(13 Weeks)
|
|
|
|
|
$
|
|
% of Revenues
|
|
|
|
|
$
|
|
% of Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct-to-customer net revenues
|
|
$
|
477,657
|
|
|
48.6
|
|
%
|
|
|
$
|
414,361
|
|
|
47.4
|
|
%
|
Retail net revenues
|
|
|
504,552
|
|
|
51.4
|
|
|
|
|
|
459,922
|
|
|
52.6
|
|
|
Net revenues
|
|
|
982,209
|
|
|
100.0
|
|
|
|
|
|
874,283
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
613,285
|
|
|
62.4
|
|
|
|
|
|
539,803
|
|
|
61.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
368,924
|
|
|
37.6
|
|
|
|
|
|
334,480
|
|
|
38.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
290,838
|
|
|
29.6
|
|
|
|
|
|
264,377
|
|
|
30.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
78,086
|
|
|
8.0
|
|
|
|
|
|
70,103
|
|
|
8.0
|
|
|
Interest (income), net
|
|
|
(125
|
)
|
|
-
|
|
|
|
|
|
(168
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
78,211
|
|
|
8.0
|
|
|
|
|
|
70,271
|
|
|
8.0
|
|
|
Income taxes
|
|
|
29,292
|
|
|
3.0
|
|
|
|
|
|
26,891
|
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
48,919
|
|
|
5.0
|
|
%
|
|
|
$
|
43,380
|
|
|
5.0
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.50
|
|
|
|
|
|
|
|
$
|
0.44
|
|
|
|
|
|
Diluted
|
|
$
|
0.49
|
|
|
|
|
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
96,892
|
|
|
|
|
|
|
|
|
99,209
|
|
|
|
|
|
Diluted
|
|
|
98,957
|
|
|
|
|
|
|
|
|
100,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS (UNAUDITED) TWENTY-SIX WEEKS
ENDED AUGUST 4, 2013 AND JULY 29, 2012 (DOLLARS AND
SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
(26 Weeks)
|
|
|
|
|
(26 Weeks)
|
|
|
|
|
$
|
|
% of Revenues
|
|
|
|
|
$
|
|
% of Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct-to-customer net revenues
|
|
$
|
896,741
|
|
|
48.0
|
|
%
|
|
|
$
|
788,768
|
|
|
46.6
|
|
%
|
Retail net revenues
|
|
|
973,276
|
|
|
52.0
|
|
|
|
|
|
903,129
|
|
|
53.4
|
|
|
Net revenues
|
|
|
1,870,017
|
|
|
100.0
|
|
|
|
|
|
1,691,897
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
1,166,908
|
|
|
62.4
|
|
|
|
|
|
1,048,151
|
|
|
62.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
703,109
|
|
|
37.6
|
|
|
|
|
|
643,746
|
|
|
38.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
561,240
|
|
|
30.0
|
|
|
|
|
|
524,320
|
|
|
31.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
141,869
|
|
|
7.6
|
|
|
|
|
|
119,426
|
|
|
7.1
|
|
|
Interest (income), net
|
|
|
(314
|
)
|
|
-
|
|
|
|
|
|
(359
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
142,183
|
|
|
7.6
|
|
|
|
|
|
119,785
|
|
|
7.1
|
|
|
Income taxes
|
|
|
53,798
|
|
|
2.9
|
|
|
|
|
|
45,689
|
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
88,385
|
|
|
4.7
|
|
%
|
|
|
$
|
74,096
|
|
|
4.4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.91
|
|
|
|
|
|
|
|
$
|
0.74
|
|
|
|
|
|
Diluted
|
|
$
|
0.89
|
|
|
|
|
|
|
|
$
|
0.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
97,470
|
|
|
|
|
|
|
|
|
99,815
|
|
|
|
|
|
Diluted
|
|
|
99,365
|
|
|
|
|
|
|
|
|
101,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WILLIAMS-SONOMA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DOLLARS IN THOUSANDS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 4, 2013
|
|
|
|
|
|
|
|
|
February 3, 2013
|
|
|
|
|
|
|
|
|
July 29, 2012
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
$
|
205,364
|
|
|
|
|
|
|
|
|
$
|
424,555
|
|
|
|
|
|
|
|
|
$
|
336,550
|
Restricted cash
|
|
|
|
|
|
|
|
|
|
16,967
|
|
|
|
|
|
|
|
|
|
16,055
|
|
|
|
|
|
|
|
|
|
16,043
|
Accounts receivable, net
|
|
|
|
|
|
|
|
|
|
62,808
|
|
|
|
|
|
|
|
|
|
62,985
|
|
|
|
|
|
|
|
|
|
53,424
|
Merchandise inventories, net
|
|
|
|
|
|
|
|
|
|
736,871
|
|
|
|
|
|
|
|
|
|
640,024
|
|
|
|
|
|
|
|
|
|
616,355
|
Prepaid catalog expenses
|
|
|
|
|
|
|
|
|
|
37,266
|
|
|
|
|
|
|
|
|
|
37,231
|
|
|
|
|
|
|
|
|
|
39,362
|
Prepaid expenses
|
|
|
|
|
|
|
|
|
|
61,725
|
|
|
|
|
|
|
|
|
|
26,339
|
|
|
|
|
|
|
|
|
|
33,805
|
Deferred income taxes, net
|
|
|
|
|
|
|
|
|
|
99,699
|
|
|
|
|
|
|
|
|
|
99,764
|
|
|
|
|
|
|
|
|
|
91,728
|
Other assets
|
|
|
|
|
|
|
|
|
|
11,029
|
|
|
|
|
|
|
|
|
|
9,819
|
|
|
|
|
|
|
|
|
|
9,103
|
Total current assets
|
|
|
|
|
|
|
|
|
|
1,231,729
|
|
|
|
|
|
|
|
|
|
1,316,772
|
|
|
|
|
|
|
|
|
|
1,196,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
|
|
|
|
|
829,951
|
|
|
|
|
|
|
|
|
|
812,037
|
|
|
|
|
|
|
|
|
|
743,915
|
Non-current deferred income taxes, net
|
|
|
|
|
|
|
|
|
|
7,509
|
|
|
|
|
|
|
|
|
|
12,398
|
|
|
|
|
|
|
|
|
|
11,483
|
Other assets, net
|
|
|
|
|
|
|
|
|
|
54,989
|
|
|
|
|
|
|
|
|
|
46,472
|
|
|
|
|
|
|
|
|
|
38,116
|
Total assets
|
|
|
|
|
|
|
|
|
$
|
2,124,178
|
|
|
|
|
|
|
|
|
$
|
2,187,679
|
|
|
|
|
|
|
|
|
$
|
1,989,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
$
|
318,532
|
|
|
|
|
|
|
|
|
$
|
259,162
|
|
|
|
|
|
|
|
|
$
|
201,905
|
Accrued salaries, benefits and other
|
|
|
|
|
|
|
|
|
|
95,762
|
|
|
|
|
|
|
|
|
|
120,632
|
|
|
|
|
|
|
|
|
|
85,598
|
Customer deposits
|
|
|
|
|
|
|
|
|
|
225,822
|
|
|
|
|
|
|
|
|
|
207,415
|
|
|
|
|
|
|
|
|
|
202,590
|
Income taxes payable
|
|
|
|
|
|
|
|
|
|
2,955
|
|
|
|
|
|
|
|
|
|
41,849
|
|
|
|
|
|
|
|
|
|
26,442
|
Current portion of long-term debt
|
|
|
|
|
|
|
|
|
|
1,817
|
|
|
|
|
|
|
|
|
|
1,724
|
|
|
|
|
|
|
|
|
|
1,652
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
35,531
|
|
|
|
|
|
|
|
|
|
26,345
|
|
|
|
|
|
|
|
|
|
27,682
|
Total current liabilities
|
|
|
|
|
|
|
|
|
|
680,419
|
|
|
|
|
|
|
|
|
|
657,127
|
|
|
|
|
|
|
|
|
|
545,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rent and lease incentives
|
|
|
|
|
|
|
|
|
|
170,817
|
|
|
|
|
|
|
|
|
|
171,198
|
|
|
|
|
|
|
|
|
|
178,996
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
1,968
|
|
|
|
|
|
|
|
|
|
3,753
|
|
|
|
|
|
|
|
|
|
5,421
|
Other long-term obligations
|
|
|
|
|
|
|
|
|
|
51,599
|
|
|
|
|
|
|
|
|
|
46,463
|
|
|
|
|
|
|
|
|
|
49,131
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
904,803
|
|
|
|
|
|
|
|
|
|
878,541
|
|
|
|
|
|
|
|
|
|
779,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
1,219,375
|
|
|
|
|
|
|
|
|
|
1,309,138
|
|
|
|
|
|
|
|
|
|
1,210,467
|
Total liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
$
|
2,124,178
|
|
|
|
|
|
|
|
|
$
|
2,187,679
|
|
|
|
|
|
|
|
|
$
|
1,989,884
|
ADDITIONAL INFORMATION
|
|
|
Store Count
|
|
Average Leased Square Footage Per Store
|
Retail Concept
|
|
May 5, 2013
|
|
Openings
|
|
Closings
|
|
August 4, 2013
|
|
July 29, 2012
|
|
August 4, 2013
|
|
July 29, 2012
|
Williams-Sonoma
|
|
254
|
|
-
|
|
(1
|
)
|
|
253
|
|
259
|
|
6,600
|
|
6,500
|
Pottery Barn
|
|
195
|
|
1
|
|
-
|
|
|
196
|
|
193
|
|
13,800
|
|
13,800
|
Pottery Barn Kids
|
|
85
|
|
1
|
|
-
|
|
|
86
|
|
83
|
|
8,000
|
|
8,100
|
West Elm
|
|
49
|
|
3
|
|
(1
|
)
|
|
51
|
|
40
|
|
14,600
|
|
16,400
|
Rejuvenation
|
|
4
|
|
-
|
|
-
|
|
|
4
|
|
4
|
|
13,200
|
|
13,200
|
Total
|
|
587
|
|
5
|
|
(2
|
)
|
|
590
|
|
579
|
|
9,900
|
|
9,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Store Square Footage
|
|
|
|
|
May 5, 2013
|
|
|
|
|
|
August 4, 2013
|
|
July 29, 2012
|
|
|
|
|
Total store selling square footage
|
|
3,586,000
|
|
|
|
|
|
3,600,000
|
|
3,526,000
|
|
|
|
|
Total store leased square footage
|
|
5,840,000
|
|
|
|
|
|
5,863,000
|
|
5,738,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) TWENTY-SIX WEEKS
ENDED AUGUST 4, 2013 AND JULY 29, 2012 (DOLLARS IN
THOUSANDS)
|
|
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
2013
|
|
2012
|
|
|
(26 Weeks)
|
|
(26 Weeks)
|
Cash flows from operating activities
|
|
|
|
|
Net earnings
|
|
$
|
88,385
|
|
|
$
|
74,096
|
|
|
|
|
|
|
Adjustments to reconcile net earnings to net cash
|
|
|
|
|
provided by (used in) operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
73,832
|
|
|
|
65,318
|
|
Loss on sale/disposal of assets
|
|
|
1,233
|
|
|
|
794
|
|
Amortization of deferred lease incentives
|
|
|
(12,621
|
)
|
|
|
(13,179
|
)
|
Deferred income taxes
|
|
|
(6,937
|
)
|
|
|
(5,843
|
)
|
Tax benefit from exercise of stock-based awards
|
|
|
11,733
|
|
|
|
12,940
|
|
Excess tax benefit from exercise of stock-based awards
|
|
|
(5,173
|
)
|
|
|
(6,390
|
)
|
Stock-based compensation expense
|
|
|
18,472
|
|
|
|
15,092
|
|
Changes in:
|
|
|
|
|
Accounts receivable
|
|
|
(1,284
|
)
|
|
|
(6,953
|
)
|
Merchandise inventories
|
|
|
(97,653
|
)
|
|
|
(62,778
|
)
|
Prepaid catalog expenses
|
|
|
(35
|
)
|
|
|
(5,068
|
)
|
Prepaid expenses and other assets
|
|
|
(40,191
|
)
|
|
|
(10,533
|
)
|
Accounts payable
|
|
|
52,336
|
|
|
|
(22,781
|
)
|
Accrued salaries, benefits and other current and long-term
liabilities
|
|
|
(10,677
|
)
|
|
|
(22,658
|
)
|
Customer deposits
|
|
|
18,710
|
|
|
|
12,218
|
|
Deferred rent and lease incentives
|
|
|
12,823
|
|
|
|
10,449
|
|
Income taxes payable
|
|
|
(38,890
|
)
|
|
|
4,012
|
|
Net cash provided by operating activities
|
|
|
64,063
|
|
|
|
38,736
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property and equipment
|
|
|
(97,777
|
)
|
|
|
(69,608
|
)
|
Restricted cash deposits
|
|
|
(912
|
)
|
|
|
(1,311
|
)
|
Proceeds from insurance reimbursement
|
|
|
1,232
|
|
|
|
-
|
|
Other
|
|
|
42
|
|
|
|
(54
|
)
|
Net cash used in investing activities
|
|
|
(97,415
|
)
|
|
|
(70,973
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Repurchase of common stock
|
|
|
(131,006
|
)
|
|
|
(93,076
|
)
|
Payment of dividends
|
|
|
(52,196
|
)
|
|
|
(44,449
|
)
|
Repayments of long-term obligations
|
|
|
(1,692
|
)
|
|
|
(200
|
)
|
Proceeds from exercise of stock-based awards
|
|
|
6,541
|
|
|
|
8,980
|
|
Tax withholdings related to stock-based awards
|
|
|
(11,135
|
)
|
|
|
(11,073
|
)
|
Excess tax benefit from exercise of stock-based awards
|
|
|
5,173
|
|
|
|
6,390
|
|
Other
|
|
|
-
|
|
|
|
(394
|
)
|
Net cash used in financing activities
|
|
|
(184,315
|
)
|
|
|
(133,822
|
)
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents
|
|
|
(1,524
|
)
|
|
|
(148
|
)
|
Net decrease in cash and cash equivalents
|
|
|
(219,191
|
)
|
|
|
(166,207
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
424,555
|
|
|
|
502,757
|
|
Cash and cash equivalents at end of period
|
|
$
|
205,364
|
|
|
$
|
336,550
|
|
|
|
|
|
|
|
|
|
|
Exhibit 1
|
|
Operating Margin By Segment* (Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
DTC
|
|
RETAIL
|
|
UNALLOCATED
|
|
TOTAL
|
|
|
Q2 13
|
|
Q2 12
|
|
Q2 13
|
|
Q2 12
|
|
Q2 13
|
|
Q2 12
|
|
Q2 13
|
|
Q2 12
|
Net Revenues
|
|
$
|
477,657
|
|
$
|
414,361
|
|
$
|
504,552
|
|
$
|
459,922
|
|
$
|
-
|
|
$
|
-
|
|
$
|
982,209
|
|
$
|
874,283
|
Operating Income/(Expense)
|
|
|
114,491
|
|
|
95,223
|
|
|
34,609
|
|
|
38,602
|
|
|
(71,014)
|
|
|
(63,722)
|
|
|
78,086
|
|
|
70,103
|
Operating Margin
|
|
|
24.0%
|
|
|
23.0%
|
|
|
6.9%
|
|
|
8.4%
|
|
|
(7.2%)
|
|
|
(7.3%)
|
|
|
8.0%
|
|
|
8.0%
|
*
|
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 13 Guidance and FY 12 Actual GAAP to
Non-GAAP
Diluted Earnings Per Share* (Totals rounded to the
nearest cent per diluted share)
|
|
|
|
|
|
|
|
|
|
|
|
Q1 13
ACT
|
|
Q2 13
ACT
|
|
Q3 13
GUID
|
|
FY 13
GUID
|
|
|
(13 Weeks)
|
|
(13 Weeks)
|
|
(13 Weeks)
|
|
(52 Weeks)
|
2013 GAAP Diluted EPS
|
|
$0.40
|
|
$0.49
|
|
$0.51 - $0.54
|
|
$2.68 - $2.78
|
Impact of Employee Separation Charges (Note 1)
|
|
$0.02
|
|
-
|
|
-
|
|
$0.02
|
2013 Non-GAAP Diluted EPS Excluding Unusual Business Events (Note
3)**
|
|
$0.41
|
|
$0.49
|
|
$0.51 - $0.54
|
|
$2.69 - $2.79
|
|
|
|
|
|
|
|
|
|
|
|
Q1 12
ACT
|
|
Q2 12
ACT
|
|
Q3 12
ACT
|
|
FY 12
ACT
|
|
|
(13 Weeks)
|
|
(13 Weeks)
|
|
(13 Weeks)
|
|
(53 Weeks)
|
2012 GAAP Diluted EPS
|
|
$0.30
|
|
$0.43
|
|
$0.49
|
|
$2.54
|
Impact of Employee Separation Charges (Note 2)
|
|
$0.04
|
|
-
|
|
-
|
|
$0.04
|
2012 Non-GAAP Diluted EPS Excluding Unusual Business Events (Note
3)
|
|
$0.34
|
|
$0.43
|
|
$0.49
|
|
$2.58
|
*
|
Due to the differences between quarterly share counts 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 13, we incurred
charges of approximately $0.02 per diluted share associated with the
previously announced retirement of the former President of the
Williams-Sonoma brand. These charges were recorded within the
unallocated segment.
|
|
|
Note 2:
|
Impact of Employee Separation Charges – During Q1 12 and FY 12, we
incurred charges of approximately $0.04 per diluted share primarily
associated with the previously announced retirement of our former
Executive Vice President, Chief Operating and Chief Financial
Officer. These charges were recorded within the unallocated segment.
|
|
|
Note 3:
|
SEC Regulation G – Non-GAAP Information – This table includes
Non-GAAP 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 13 diluted EPS actual results and FY 13 guidance
on a comparable basis with our quarterly and FY 12 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.
|
Copyright Business Wire 2013