Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for
the second fiscal quarter ended August 2, 2015 (“Q2 15”) versus the
second fiscal quarter ended August 3, 2014 (“Q2 14”).
2nd QUARTER 2015 RESULTS
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–
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Q2 15 net revenues grew 8.5% to $1.127 billion versus $1.039 billion
in Q2 14, with comparable brand revenue growth of 6.3%.
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–
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Q2 15 operating margin was 7.4% versus 8.2% in Q2 14.
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–
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Q2 15 diluted earnings per share (“EPS”) was $0.58 versus $0.53 in
Q2 14.
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–
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Cash returned to stockholders totaled $104.5 million, comprising
$72.4 million in stock repurchases and $32.1 million in dividends.
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Laura Alber, President and Chief Executive Officer, commented,
“We are pleased to have delivered another quarter of solid performance,
once again demonstrating the competitive advantage from our multi-brand,
multi-channel, business model. As anticipated, during the quarter, we
incurred incremental supply chain costs primarily associated with the
west coast port disruption to restore our in-stock inventory levels,
allowing us to provide superior long-term customer service. We are
focused on disciplined execution against our strategic growth
initiatives.”
Net revenues increased to $1.127 billion in Q2 15 from $1.039
billion in Q2 14.
Comparable brand revenue growth in Q2 15 increased 6.3% on top of
5.7% in Q2 14 as shown in the table below:
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2nd Quarter Comparable Brand Revenue
Growth by Concept*
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Q2 15
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Q2 14
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Pottery Barn
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6.4%
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4.4%
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Williams-Sonoma
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(0.3%)
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3.4%
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West Elm
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15.7%
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16.7%
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Pottery Barn Kids
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3.3%
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5.6%
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PBteen
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3.9%
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(1.0%)
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Total
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6.3%
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5.7%
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* See the Company’s 10-K and 10-Q filings for the definition of
comparable brand revenue growth.
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E-commerce net revenues in Q2 15 increased 9.1% to $570 million
from $523 million in Q2 14. E-commerce net revenues generated 51% of
total company net revenues in Q2 15, compared to 50% in Q2 14.
Retail net revenues in Q2 15 increased 7.9% to $557 million from
$517 million in Q2 14.
Operating margin in Q2 15 was 7.4% compared to 8.2% in Q2 14:
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–
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Gross margin was 36.1% in Q2 15 versus 36.8% in Q2 14.
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–
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Selling, general and administrative (“SG&A”) expenses were $323
million, or 28.7% of net revenues in Q2 15, versus $297 million, or
28.6% of net revenues, in Q2 14.
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EPS in Q2 15 was $0.58 versus $0.53 in Q2 14.
Merchandise inventories at the end of Q2 15 increased 15.3% to
$1.031 billion from $895 million at the end of Q2 14.
The effective income tax rate in Q2 15 was 35.4% versus 40.5% in
Q2 14, reflecting the favorable resolution of certain income tax matters.
STOCK REPURCHASE PROGRAM
During Q2 15, we repurchased 899,301 shares of common stock at an
average cost of $80.55 per share and a total cost of approximately $72
million. As of August 2, 2015, there was approximately $162 million
remaining under the three-year, $750 million stock repurchase program
announced in March 2013.
FISCAL YEAR 2015 FINANCIAL GUIDANCE
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3rd Quarter 2015 Guidance Financial
Highlights
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Total Net Revenues (millions)
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$1,190 – $1,220
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Comparable Brand Revenue Growth
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4% – 6%
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Diluted EPS
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$0.68 – $0.73
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Fiscal Year 2015 Guidance Financial Highlights
(Includes impact of the west coast port slowdown)*
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Total Net Revenues (millions)
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$4,950 – $5,020
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Comparable Brand Revenue Growth
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4% – 6%
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Operating Margin
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10.2% – 10.5%
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Diluted EPS
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$3.35 – $3.45
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Income Tax Rate
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38.3% – 38.8%
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Capital Spending (millions)
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$200 – $220
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Depreciation and Amortization (millions)
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$170 – $180
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* We have estimated the impact of the west coast port slowdown
to be an approximate $30 million to $40
million reduction in net revenues and a $0.10 to $0.12
reduction in EPS in fiscal year 2015.
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Store Opening and Closing Guidance by Retail Concept*
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FY 2014 ACT
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FY 2015 GUID
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Total
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New
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Close
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End
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Williams-Sonoma
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243
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5
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(10)
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238
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Pottery Barn
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199
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4
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(6)
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197
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Pottery Barn Kids
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85
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6
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(4)
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87
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West Elm
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69
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18
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-
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87
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Rejuvenation
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5
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1
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-
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6
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Total
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601
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34
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(20)
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615
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* Included in the FY 14 store count are 13 stores in Australia and
one store in the UK. FY 15 guidance includes six additional
Australian stores.
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CONFERENCE CALL AND WEBCAST INFORMATION
Williams-Sonoma, Inc. will host a live conference call today, August 26,
2015, 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
We have reconciled non-GAAP diluted EPS with the most directly
comparable GAAP financial measure in Exhibit 1. This non-GAAP financial
measure excludes the impact of unusual business events which occurred in
FY 14. 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 FY 15 guidance on a comparable basis with prior periods. 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 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 are proven 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 initiatives; our future financial
guidance, including Q3 15 and FY 2015 guidance; our three-year stock
repurchase program; the impact of the west coast port slowdown; 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
15; continuing 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; challenges associated with
our increasing global presence; 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 1, 2015 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, Pottery Barn, Pottery Barn Kids, West Elm,
PBteen, Williams-Sonoma Home, Rejuvenation, and Mark and Graham – are
marketed through e-commerce websites, direct mail catalogs and 612
stores. Williams-Sonoma, Inc. currently operates in the United States,
Canada, Australia and the United Kingdom, offers international shipping
to customers worldwide, and has unaffiliated franchisees that operate
stores in the Middle East and the Philippines.
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Williams-Sonoma, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
Thirteen weeks ended August 2, 2015 and August 3, 2014
(Dollars and shares in thousands, except per share amounts)
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2nd Quarter
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2015
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2014
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$
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% of Revenues
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$
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% of Revenues
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E-commerce net revenues
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$
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569,913
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50.6
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%
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$
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522,589
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50.3
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%
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Retail net revenues
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557,115
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49.4
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516,513
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49.7
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Net revenues
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1,127,028
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100.0
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1,039,102
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100.0
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Cost of goods sold
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720,403
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63.9
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657,004
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63.2
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Gross profit
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406,625
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36.1
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382,098
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36.8
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Selling, general and administrative expenses
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323,282
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28.7
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296,762
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28.6
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Operating income
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|
83,343
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7.4
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|
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85,336
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8.2
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Interest (income) expense, net
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275
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-
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40
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-
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Earnings before income taxes
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83,068
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|
7.4
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85,296
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8.2
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Income taxes
|
|
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29,400
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|
2.6
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|
|
|
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|
34,549
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|
3.3
|
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Net earnings
|
|
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|
$
|
53,668
|
|
4.8
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%
|
|
|
|
|
$
|
50,747
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|
4.9
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%
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Earnings per share (EPS):
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|
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Basic
|
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$0.59
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|
|
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|
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$0.54
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Diluted
|
|
|
|
|
$0.58
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|
|
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|
|
|
$0.53
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|
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|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculation of EPS:
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|
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|
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|
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Basic
|
|
|
|
|
|
91,243
|
|
|
|
|
|
|
|
93,979
|
|
|
Diluted
|
|
|
|
|
|
92,564
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|
|
|
|
|
|
|
95,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Williams-Sonoma, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
Twenty-six weeks ended August 2, 2015 and August 3, 2014
(Dollars and shares in thousands, except per share amounts)
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Year-to-Date
|
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2015
|
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|
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2014
|
|
|
|
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|
$
|
|
% of Revenues
|
|
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|
|
$
|
|
% of Revenues
|
E-commerce net revenues
|
|
|
|
|
$
|
1,102,486
|
|
51.1
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%
|
|
|
|
|
$
|
1,013,878
|
|
|
50.4
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%
|
Retail net revenues
|
|
|
|
|
|
1,055,218
|
|
48.9
|
|
|
|
|
|
|
999,554
|
|
|
49.6
|
|
Net revenues
|
|
|
|
|
|
2,157,704
|
|
100.0
|
|
|
|
|
|
|
2,013,432
|
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
|
|
1,372,238
|
|
63.6
|
|
|
|
|
|
|
1,262,926
|
|
|
62.7
|
|
Gross profit
|
|
|
|
|
|
785,466
|
|
36.4
|
|
|
|
|
|
|
750,506
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|
|
37.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
|
630,195
|
|
29.2
|
|
|
|
|
|
|
590,844
|
|
|
29.3
|
|
Operating income
|
|
|
|
|
|
155,271
|
|
7.2
|
|
|
|
|
|
|
159,662
|
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income) expense, net
|
|
|
|
|
|
283
|
|
-
|
|
|
|
|
|
|
(29
|
)
|
|
-
|
|
Earnings before income taxes
|
|
|
|
|
|
154,988
|
|
7.2
|
|
|
|
|
|
|
159,691
|
|
|
7.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
56,530
|
|
2.6
|
|
|
|
|
|
|
62,782
|
|
|
3.1
|
|
Net earnings
|
|
|
|
|
$
|
98,458
|
|
4.6
|
%
|
|
|
|
|
$
|
96,909
|
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (EPS):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$1.08
|
|
|
|
|
|
|
$1.03
|
|
|
|
Diluted
|
|
|
|
|
$1.06
|
|
|
|
|
|
|
$1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculation of EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
91,475
|
|
|
|
|
|
|
|
94,010
|
|
|
|
Diluted
|
|
|
|
|
|
92,969
|
|
|
|
|
|
|
|
95,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Williams-Sonoma, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(Dollars and shares in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Aug. 2, 2015
|
|
|
Feb. 1, 2015
|
|
|
Aug. 3, 2014
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
119,776
|
|
|
|
$
|
222,927
|
|
|
|
$
|
70,574
|
|
Accounts receivable, net
|
|
|
81,753
|
|
|
|
|
67,465
|
|
|
|
|
69,653
|
|
Merchandise inventories, net
|
|
|
1,031,472
|
|
|
|
|
887,701
|
|
|
|
|
894,860
|
|
Prepaid catalog expenses
|
|
|
38,088
|
|
|
|
|
33,942
|
|
|
|
|
39,072
|
|
Prepaid expenses
|
|
|
56,119
|
|
|
|
|
36,265
|
|
|
|
|
55,892
|
|
Deferred income taxes, net
|
|
|
130,687
|
|
|
|
|
130,618
|
|
|
|
|
121,527
|
|
Other assets
|
|
|
12,808
|
|
|
|
|
13,005
|
|
|
|
|
9,772
|
|
Total current assets
|
|
|
1,470,703
|
|
|
|
|
1,391,923
|
|
|
|
|
1,261,350
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
875,002
|
|
|
|
|
883,012
|
|
|
|
|
849,255
|
|
Non-current deferred income taxes, net
|
|
|
-
|
|
|
|
|
4,265
|
|
|
|
|
856
|
|
Other assets, net
|
|
|
50,266
|
|
|
|
|
51,077
|
|
|
|
|
52,087
|
|
Total assets
|
|
$
|
2,395,971
|
|
|
|
$
|
2,330,277
|
|
|
|
$
|
2,163,548
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
416,276
|
|
|
|
$
|
397,037
|
|
|
|
$
|
336,470
|
|
Accrued salaries, benefits and other
|
|
|
103,695
|
|
|
|
|
136,012
|
|
|
|
|
101,818
|
|
Customer deposits
|
|
|
288,654
|
|
|
|
|
261,679
|
|
|
|
|
251,146
|
|
Borrowings under revolving line of credit
|
|
|
150,000
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Income taxes payable
|
|
|
14,678
|
|
|
|
|
32,488
|
|
|
|
|
14,604
|
|
Current portion of long-term debt
|
|
|
-
|
|
|
|
|
1,968
|
|
|
|
|
1,968
|
|
Other liabilities
|
|
|
50,237
|
|
|
|
|
46,764
|
|
|
|
|
44,713
|
|
Total current liabilities
|
|
|
1,023,540
|
|
|
|
|
875,948
|
|
|
|
|
750,719
|
|
|
|
|
|
|
|
|
|
|
Deferred rent and lease incentives
|
|
|
179,103
|
|
|
|
|
166,925
|
|
|
|
|
171,193
|
|
Non-current deferred income taxes, net
|
|
|
1,213
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Other long-term obligations
|
|
|
50,739
|
|
|
|
|
62,698
|
|
|
|
|
63,227
|
|
Total liabilities
|
|
|
1,254,595
|
|
|
|
|
1,105,571
|
|
|
|
|
985,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
|
Preferred stock: $.01 par value; 7,500 shares authorized; none
issued
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Common stock: $.01 par value; 253,125 shares authorized; 90,860,
91,891 and 93,414 shares issued and outstanding at August 2,
2015, February 1, 2015 and August 3, 2014, respectively
|
|
|
909
|
|
|
|
|
919
|
|
|
|
|
934
|
|
Additional paid-in capital
|
|
|
532,835
|
|
|
|
|
527,261
|
|
|
|
|
514,464
|
|
Retained earnings
|
|
|
615,193
|
|
|
|
|
701,214
|
|
|
|
|
657,721
|
|
Accumulated other comprehensive income (loss)
|
|
|
(5,625
|
)
|
|
|
|
(2,548
|
)
|
|
|
|
7,741
|
|
Treasury stock, at cost
|
|
|
(1,936
|
)
|
|
|
|
(2,140
|
)
|
|
|
|
(2,451
|
)
|
Total stockholders’ equity
|
|
|
1,141,376
|
|
|
|
|
1,224,706
|
|
|
|
|
1,178,409
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
2,395,971
|
|
|
|
$
|
2,330,277
|
|
|
|
$
|
2,163,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Williams-Sonoma, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
Twenty-six weeks ended August 2, 2015 and August 3, 2014
(Dollars in thousands)
|
|
|
|
Year-to-Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
2014
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
98,458
|
|
|
|
|
|
$
|
96,909
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net earnings to net cash
|
|
|
|
|
|
|
|
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
83,233
|
|
|
|
|
|
|
79,332
|
|
Loss on disposal/impairment of assets
|
|
|
2,074
|
|
|
|
|
|
|
952
|
|
Amortization of deferred lease incentives
|
|
|
(12,075
|
)
|
|
|
|
|
|
(12,483
|
)
|
Deferred income taxes
|
|
|
(8,533
|
)
|
|
|
|
|
|
(8,326
|
)
|
Tax benefit related to stock-based awards
|
|
|
25,917
|
|
|
|
|
|
|
46,174
|
|
Excess tax benefit related to stock-based awards
|
|
|
(11,807
|
)
|
|
|
|
|
|
(22,911
|
)
|
Stock-based compensation expense
|
|
|
24,913
|
|
|
|
|
|
|
22,191
|
|
Other
|
|
|
69
|
|
|
|
|
|
|
305
|
|
|
|
|
|
|
|
|
|
Changes in:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(14,854
|
)
|
|
|
|
|
|
(4,227
|
)
|
Merchandise inventories
|
|
|
(144,934
|
)
|
|
|
|
|
|
(80,158
|
)
|
Prepaid catalog expenses
|
|
|
(4,146
|
)
|
|
|
|
|
|
(5,516
|
)
|
Prepaid expenses and other assets
|
|
|
(19,708
|
)
|
|
|
|
|
|
(18,043
|
)
|
Accounts payable
|
|
|
15,625
|
|
|
|
|
|
|
(60,527
|
)
|
Accrued salaries, benefits and other current and long-term
liabilities
|
|
|
(30,835
|
)
|
|
|
|
|
|
(28,981
|
)
|
Customer deposits
|
|
|
27,243
|
|
|
|
|
|
|
22,767
|
|
Deferred rent and lease incentives
|
|
|
24,034
|
|
|
|
|
|
|
17,516
|
|
Income taxes payable
|
|
|
(17,869
|
)
|
|
|
|
|
|
(34,757
|
)
|
Net cash provided by operating activities
|
|
|
36,805
|
|
|
|
|
|
|
10,217
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(86,849
|
)
|
|
|
|
|
|
(83,519
|
)
|
Restricted cash receipts
|
|
|
-
|
|
|
|
|
|
|
14,289
|
|
Other
|
|
|
278
|
|
|
|
|
|
|
282
|
|
Net cash used in investing activities
|
|
|
(86,571
|
)
|
|
|
|
|
|
(68,948
|
)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Borrowings under revolving line of credit
|
|
|
150,000
|
|
|
|
|
|
|
-
|
|
Repurchase of common stock
|
|
|
(125,000
|
)
|
|
|
|
|
|
(112,054
|
)
|
Payment of dividends
|
|
|
(64,044
|
)
|
|
|
|
|
|
(63,996
|
)
|
Tax withholdings related to stock-based awards
|
|
|
(27,175
|
)
|
|
|
|
|
|
(49,434
|
)
|
Excess tax benefit related to stock-based awards
|
|
|
11,807
|
|
|
|
|
|
|
22,911
|
|
Net proceeds related to stock-based awards
|
|
|
2,647
|
|
|
|
|
|
|
3,471
|
|
Repayments of long-term obligations
|
|
|
(1,968
|
)
|
|
|
|
|
|
(1,785
|
)
|
Other
|
|
|
-
|
|
|
|
|
|
|
(6
|
)
|
Net cash used in financing activities
|
|
|
(53,733
|
)
|
|
|
|
|
|
(200,893
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents
|
|
|
348
|
|
|
|
|
|
|
77
|
|
Net decrease in cash and cash equivalents
|
|
|
(103,151
|
)
|
|
|
|
|
|
(259,547
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
222,927
|
|
|
|
|
|
|
330,121
|
|
Cash and cash equivalents at end of period
|
|
$
|
119,776
|
|
|
|
|
|
$
|
70,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 1
|
2nd Quarter Operating Margin By
Segment*
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce
|
|
Retail
|
|
Unallocated
|
|
Total
|
|
|
Q2 15
|
|
Q2 14
|
|
Q2 15
|
|
Q2 14
|
|
Q2 15
|
|
Q2 14
|
|
Q2 15
|
|
Q2 14
|
Net Revenues
|
|
$569,913
|
|
$522,589
|
|
$557,115
|
|
$516,513
|
|
$ -
|
|
$ -
|
|
$1,127,028
|
|
$1,039,102
|
Operating Income/(Expense)
|
|
122,461
|
|
120,612
|
|
40,503
|
|
37,058
|
|
(79,621)
|
|
(72,334)
|
|
83,343
|
|
85,336
|
Operating Margin
|
|
21.5%
|
|
23.1%
|
|
7.3%
|
|
7.2%
|
|
(7.1%)
|
|
(7.0%)
|
|
7.4%
|
|
8.2%
|
* See the Company’s 10-K and 10-Q filings for additional
information on segment reporting and the definition of Operating Income/(Expense)
and Operating Margin.
|
|
|
Reconciliation of Quarterly and Fiscal Year Actual GAAP to
Non-GAAP
Diluted Earnings Per Share**
(Totals rounded to the nearest cent per diluted share)
|
|
|
|
|
|
|
|
|
|
|
|
Q1 15
ACT
|
|
Q2 15
ACT
|
|
Q3 15
GUID
|
|
FY 15
GUID
|
2015 GAAP Diluted EPS
|
|
$0.48
|
|
$0.58
|
|
$0.68 - $0.73
|
|
$3.35 - $3.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 14
ACT
|
|
Q2 14
ACT
|
|
Q3 14
ACT
|
|
FY 14
ACT
|
2014 GAAP Diluted EPS
|
|
$0.48
|
|
$0.53
|
|
$0.68
|
|
$3.24
|
Impact of Unusual Business Events (1)
|
|
-
|
|
-
|
|
-
|
|
(0.04)
|
2014 Non-GAAP Diluted EPS Excluding Unusual Business
Events (2)
|
|
$0.48
|
|
$0.53
|
|
$0.68
|
|
$3.20
|
** Due to the differences between the quarterly and year-to-date
weighted average share count calculations and rounding to the
nearest cent per diluted share, totals may not equal the sum of
the line items and fiscal year diluted EPS may not equal
the sum of the quarters.
|
|
|
Store Statistics
|
|
|
Store Count
|
|
|
|
Avg. Leased Square Footage Per Store
|
|
|
May 3, 2015
|
|
Openings
|
|
Closings
|
|
Aug. 2, 2015
|
|
Aug. 3, 2014
|
|
|
|
Aug. 2, 2015
|
|
Aug. 3, 2014
|
Williams-Sonoma
|
|
241
|
|
-
|
|
-
|
|
241
|
|
247
|
|
|
|
6,600
|
|
6,600
|
Pottery Barn
|
|
198
|
|
2
|
|
(1)
|
|
199
|
|
195
|
|
|
|
13,700
|
|
13,700
|
Pottery Barn Kids
|
|
87
|
|
3
|
|
(1)
|
|
89
|
|
84
|
|
|
|
7,500
|
|
7,700
|
West Elm
|
|
72
|
|
6
|
|
-
|
|
78
|
|
59
|
|
|
|
13,400
|
|
14,000
|
Rejuvenation
|
|
5
|
|
-
|
|
-
|
|
5
|
|
4
|
|
|
|
10,000
|
|
13,200
|
Total
|
|
603
|
|
11
|
|
(2)
|
|
612
|
|
589
|
|
|
|
9,900
|
|
9,900
|
|
|
|
|
|
|
|
|
May 3, 2015
|
|
Aug. 2, 2015
|
|
Aug. 3, 2014
|
|
Total store selling square footage
|
3,709,000
|
|
3,771,000
|
|
3,598,000
|
|
Total store leased square footage
|
5,998,000
|
|
6,088,000
|
|
5,843,000
|
|
|
|
|
|
|
|
|
Notes:
|
(1)
|
|
Impact of Unusual Business Events – During FY 14, we received our
share of the VISA/MasterCard antitrust litigation settlement. This
settlement (a benefit) totaled approximately $0.04 per diluted share
in FY 14, and is recorded in SG&A expenses within the unallocated
segment.
|
(2)
|
|
SEC Regulation G – Non-GAAP Information – This table includes
non-GAAP diluted EPS. 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 FY 15 guidance on a comparable basis
with prior periods. 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.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150826006139/en/
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