☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-2203880 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
3250 Van Ness Avenue, San Francisco, CA | 94109 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class: | Trading Symbol(s): | Name of each exchange on which registered: | ||
Common Stock, par value $.01 per share | WSM | New York Stock Exchange, Inc. |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||
Emerging growth company | |||||||||
☐ |
PAGE | ||||||||||
Item 1. | 1 | |||||||||
Item | 2. | |||||||||
16 | ||||||||||
Item 3. | 22 | |||||||||
Item 4. | 22 | |||||||||
PART II. OTHER INFORMATION | ||||||||||
Item 1. | 23 | |||||||||
Item | 1A. | 23 | ||||||||
Item 2. | ||||||||||
25 | ||||||||||
Item 3. | 25 | |||||||||
Item | 4. | 25 | ||||||||
Item 5. | 25 | |||||||||
Item | 6. | |||||||||
26 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||
In thousands, except per share amounts | August 4, 2019 | July 29, 2018 | August 4, 2019 | July 29, 2018 | ||||||||||||
Net revenues | $ | 1,370,814 | $ | 1,275,174 | $ | 2,611,946 | $ | 2,478,174 | ||||||||
Cost of goods sold | 886,953 | 811,232 | 1,683,754 | 1,582,068 | ||||||||||||
Gross profit | 483,861 | 463,942 | 928,192 | 896,106 | ||||||||||||
Selling, general and administrative expenses | 397,696 | 389,776 | 767,895 | 755,390 | ||||||||||||
Operating income | 86,165 | 74,166 | 160,297 | 140,716 | ||||||||||||
Interest (income) expense, net | 2,669 | 1,584 | 4,922 | 2,785 | ||||||||||||
Earnings before income taxes | 83,496 | 72,582 | 155,375 | 137,931 | ||||||||||||
Income taxes | 20,848 | 20,869 | 40,071 | 41,050 | ||||||||||||
Net earnings | $ | 62,648 | $ | 51,713 | $ | 115,304 | $ | 96,881 | ||||||||
Basic earnings per share | $ | 0.80 | $ | 0.63 | $ | 1.47 | $ | 1.17 | ||||||||
Diluted earnings per share | $ | 0.79 | $ | 0.62 | $ | 1.45 | $ | 1.16 | ||||||||
Shares used in calculation of earnings per share: | ||||||||||||||||
Basic | 78,488 | 82,342 | 78,586 | 82,867 | ||||||||||||
Diluted | 79,470 | 83,167 | 79,633 | 83,519 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||
In thousands, except per share amounts | August 2 , 2020 | August 4 , 2019 | August 2 , 2020 | August 4 , 2019 | ||||||||||||
Net revenues | $ | 1,490,777 | $ | 1,370,814 | $ | 2,725,980 | $ | 2,611,946 | ||||||||
Cost of goods sold | 939,575 | 886,953 | 1,760,518 | 1,683,754 | ||||||||||||
Gross profit | 551,202 | 483,861 | 965,462 | 928,192 | ||||||||||||
Selling, general and administrative expenses | 365,841 | 397,696 | 731,456 | 767,895 | ||||||||||||
Operating income | 185,361 | 86,165 | 234,006 | 160,297 | ||||||||||||
Interest expense, net | 6,464 | 2,669 | 8,623 | 4,922 | ||||||||||||
Earnings before income taxes | 178,897 | 83,496 | 225,383 | 155,375 | ||||||||||||
Income taxes | 44,333 | 20,848 | 55,396 | 40,071 | ||||||||||||
Net earnings | $ | 134,564 | $ | 62,648 | $ | 169,987 | $ | 115,304 | ||||||||
Basic earnings per share | $ | 1.73 | $ | 0.80 | $ | 2.19 | $ | 1.47 | ||||||||
Diluted earnings per share | $ | 1.70 | $ | 0.79 | $ | 2.16 | $ | 1.45 | ||||||||
Shares used in calculation of earnings per share: | ||||||||||||||||
Basic | 77,783 | 78,488 | 77,522 | 78,586 | ||||||||||||
Diluted | 79,264 | 79,470 | 78,841 | 79,633 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||
In thousands | August 4, 2019 | July 29, 2018 | August 4, 2019 | July 29, 2018 | ||||||||||||
Net earnings | $ | 62,648 | $ | 51,713 | $ | 115,304 | $ | 96,881 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments | (1,251 | ) | (2,993 | ) | (4,260 | ) | (4,138 | ) | ||||||||
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $(8), $333, $66 and $401 | (132 | ) | 6 | 72 | 1,129 | |||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $10, $(21), $34 and $(24) | (160 | ) | — | (227 | ) | 49 | ||||||||||
Comprehensive income | $ | 61,105 | $ | 48,726 | $ | 110,889 | $ | 93,921 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||
In thousands | August 2 , 2020 | August 4 , 2019 | August 2 , 2020 | August 4 , 2019 | ||||||||||||
Net earnings | $ | 134,564 | $ | 62,648 | $ | 169,987 | $ | 115,304 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments | 6,737 | (1,251 | ) | 1,461 | (4,260 | ) | ||||||||||
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $(71), $(8), $125 and $66 | (200 | ) | (132 | ) | 349 | 72 | ||||||||||
Reclassification adjustment for realized gain on derivative financial instruments, net of tax of $38, $10, $51 and $34 | (107 | ) | (160 | ) | (144 | ) | (227 | ) | ||||||||
Comprehensive income | $ | 140,994 | $ | 61,105 | $ | 171,653 | $ | 110,889 |
In thousands, except per share amounts | August 4, 2019 | February 3, 2019 | July 29, 2018 | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 120,467 | $ | 338,954 | $ | 174,580 | ||||||
Accounts receivable, net | 111,114 | 107,102 | 106,322 | |||||||||
Merchandise inventories, net | 1,187,728 | 1,124,992 | 1,099,888 | |||||||||
Prepaid expenses | 117,017 | 101,356 | 74,811 | |||||||||
Other current assets | 21,693 | 21,939 | 21,891 | |||||||||
Total current assets | 1,558,019 | 1,694,343 | 1,477,492 | |||||||||
Property and equipment, net | 913,059 | 929,635 | 919,689 | |||||||||
Operating lease right-of-use assets | 1,208,528 | — | — | |||||||||
Deferred income taxes, net | 38,803 | 44,055 | 60,960 | |||||||||
Goodwill | 85,348 | 85,382 | 85,673 | |||||||||
Other long-term assets, net | 65,924 | 59,429 | 64,163 | |||||||||
Total assets | $ | 3,869,681 | $ | 2,812,844 | $ | 2,607,977 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 404,337 | $ | 526,702 | $ | 466,903 | ||||||
Accrued expenses | 127,137 | 163,559 | �� | 112,381 | ||||||||
Gift card and other deferred revenue | 283,108 | 290,445 | 263,546 | |||||||||
Borrowings under revolving line of credit | 60,000 | — | — | |||||||||
Income taxes payable | 13,065 | 21,461 | 35,529 | |||||||||
Operating lease liabilities | 222,978 | — | — | |||||||||
Other current liabilities | 76,254 | 72,645 | 69,589 | |||||||||
Total current liabilities | 1,186,879 | 1,074,812 | 947,948 | |||||||||
Deferred rent and lease incentives | 28,618 | 201,374 | 207,190 | |||||||||
Long-term debt | 299,719 | 299,620 | 299,521 | |||||||||
Long-term operating lease liabilities | 1,148,031 | — | — | |||||||||
Other long-term liabilities | 84,831 | 81,324 | 72,330 | |||||||||
Total liabilities | 2,748,078 | 1,657,130 | 1,526,989 | |||||||||
Commitments and contingencies – See Note F | ||||||||||||
Stockholders’ equity | ||||||||||||
Preferred stock: $ .01 | — | — | — | |||||||||
Common stock: $ .01 par value; 253,125 shares authorized; 78,203, 78,813 and 80,988 shares issued and outstanding at August 4, 2019, February 3, 2019 and July 29, 2018, respectively | 783 | 789 | 810 | |||||||||
Additional paid-in capital | 584,828 | 581,900 | 561,810 | |||||||||
Retained earnings | 552,454 | 584,333 | 528,368 | |||||||||
Accumulated other comprehensive loss | (15,488 | ) | (11,073 | ) | (9,742 | ) | ||||||
Treasury stock, at cost: 14, 2 and 2 shares as of August 4, 2019, February 3, 2019 and July 29, 2018, respectively | (974 | ) | (235 | ) | (258 | ) | ||||||
Total stockholders’ equity | 1,121,603 | 1,155,714 | 1,080,988 | |||||||||
Total liabilities and stockholders’ equity | $ | 3,869,681 | $ | 2,812,844 | $ | 2,607,977 |
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | Treasury | Total Stockholders’ | |||||||||||||||||||||||
In thousands | Shares | Amount | Capital | Earnings | Income (Loss) | Stock | Equity | |||||||||||||||||||||
Balance at February 3, 2019 | 78,813 | $ | 789 | $ | 581,900 | $ | 584,333 | $ | (11,073 | ) | $ | (235 | ) | $ | 1,155,714 | |||||||||||||
Net earnings | — | — | — | 52,656 | — | — | 52,656 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (3,009 | ) | — | (3,009 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 204 | — | 204 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (67 | ) | — | (67 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 571 | 5 | (25,298 | ) | — | — | (113 | ) | (25,406 | ) | ||||||||||||||||||
Repurchases of common stock | (576 | ) | (6 | ) | (2,874 | ) | (30,010 | ) | — | (958 | ) | (33,848 | ) | |||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (332 | ) | — | — | 332 | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 18,376 | — | — | — | 18,376 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,549 | ) | — | — | (39,549 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 2 | — | — | — | (3,303 | ) | — | — | (3,303 | ) | |||||||||||||||||||
Balance at May 5, 2019 | 78,808 | $ | 788 | $ | 571,772 | $ | 564,127 | $ | (13,945 | ) | $ | (974 | ) | $ | 1,121,768 | |||||||||||||
Net earnings | — | — | — | 62,648 | — | — | 62,648 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (1,251 | ) | — | (1,251 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (132 | ) | — | (132 | ) | |||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (160 | ) | — | (160 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 31 | 1 | (482 | ) | — | — | — | (481 | ) | |||||||||||||||||||
Repurchases of common stock | (636 | ) | (6 | ) | (3,170 | ) | (35,107 | ) | — | — | (38,283 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 16,708 | — | — | — | 16,708 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,214 | ) | — | — | (39,214 | ) | |||||||||||||||||||
Balance at August 4, 2019 | 78,203 | $ | 783 | $ | 584,828 | $ | 552,454 | $ | (15,488 | ) | $ | (974 | ) | $ | 1,121,603 |
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | Treasury | Total Stockholders’ | |||||||||||||||||||||||
In thousands | Shares | Amount | Capital | Earnings | Income (Loss) | Stock | Equity | |||||||||||||||||||||
Balance at January 28, 2018 | 83,726 | $ | 837 | $ | 562,814 | $ | 647,422 | $ | (6,782 | ) | $ | (725 | ) | $ | 1,203,566 | |||||||||||||
Net earnings | — | — | — | 45,168 | — | — | 45,168 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (1,145 | ) | — | (1,145 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 1,123 | — | 1,123 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | 49 | — | 49 | |||||||||||||||||||||
Conversion/release of stock-based awards 1 | 228 | 3 | (7,213 | ) | — | — | (226 | ) | (7,436 | ) | ||||||||||||||||||
Repurchases of common stock | (732 | ) | (7 | ) | (3,437 | ) | (34,269 | ) | — | — | (37,713 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (290 | ) | (358 | ) | — | 648 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 12,811 | — | — | — | 12,811 | |||||||||||||||||||||
Dividends declared | — | — | — | (36,877 | ) | — | — | (36,877 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 2 | — | — | — | 17,688 | — | — | 17,688 | |||||||||||||||||||||
Balance at April 29, 2018 | 83,222 | $ | 833 | $ | 564,685 | $ | 638,774 | $ | (6,755 | ) | $ | (303 | ) | $ | 1,197,234 | |||||||||||||
Net earnings | — | — | — | 51,713 | — | — | 51,713 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (2,993 | ) | — | (2,993 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 6 | — | 6 | |||||||||||||||||||||
Conversion/release of stock-based awards 1 | 175 | 2 | (4,869 | ) | — | — | (32 | ) | (4,899 | ) | ||||||||||||||||||
Repurchases of common stock | (2,409 | ) | (25 | ) | (11,431 | ) | (125,649 | ) | — | — | (137,105 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (72 | ) | (5 | ) | — | 77 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 13,497 | — | — | — | 13,497 | |||||||||||||||||||||
Dividends declared | — | — | — | (36,465 | ) | — | — | (36,465 | ) | |||||||||||||||||||
Balance at July 29, 2018 | 80,988 | $ | 810 | $ | 561,810 | $ | 528,368 | $ | (9,742 | ) | $ | (258 | ) | $ | 1,080,988 |
Twenty-six Weeks Ended | ||||||||
In thousands | August 4, 2019 | July 29, 20 18 | ||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 115,304 | $ | 96,881 | ||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 93,744 | 93,809 | ||||||
(Gain) loss on disposal/impairment of assets | (6 | ) | 4,466 | |||||
Amortization of deferred lease incentives | (4,228 | ) | (13,210 | ) | ||||
Non-cash lease expense | 105,437 | — | ||||||
Deferred income taxes | (8,428 | ) | (4,415 | ) | ||||
Tax benefit related to stock-based awards | 14,110 | 9,711 | ||||||
Stock-based compensation expense | 35,401 | 26,526 | ||||||
Other | 92 | 166 | ||||||
Changes in: | ||||||||
Accounts receivable | (4,430 | ) | (13,567 | ) | ||||
Merchandise inventories | (63,576 | ) | (45,159 | ) | ||||
Prepaid expenses and other assets | (24,506 | ) | (29,217 | ) | ||||
Accounts payable | (127,511 | ) | (1,735 | ) | ||||
Accrued expenses and other liabilities | (30,677 | ) | (12,209 | ) | ||||
Gift card and other deferred revenue | (7,173 | ) | 11,927 | |||||
Deferred rent and lease incentives | — | 18,861 | ||||||
Operating lease liabilities | (111,782 | ) | — | |||||
Income taxes payable | (8,407 | ) | (22,712 | ) | ||||
Net cash (used in) provided by operating activities | (26,636 | ) | 120,123 | |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (77,189 | ) | (80,021 | ) | ||||
Other | 470 | 513 | ||||||
Net cash used in investing activities | (76,719 | ) | (79,508 | ) | ||||
Cash flows from financing activities: | ||||||||
Payment of dividends | (75,453 | ) | (70,331 | ) | ||||
Repurchases of common stock | (72,131 | ) | (174,818 | ) | ||||
Borrowings under revolving line of credit | 60,000 | — | ||||||
Tax withholdings related to stock-based awards | (25,887 | ) | (12,335 | ) | ||||
Net cash used in financing activities | (113,471 | ) | (257,484 | ) | ||||
Effect of exchange rates on cash and cash equivalents | (1,661 | ) | 1,313 | |||||
Net decrease in cash and cash equivalents | (218,487 | ) | (215,556 | ) | ||||
Cash and cash equivalents at beginning of period | 338,954 | 390,136 | ||||||
Cash and cash equivalents at end of period | $ | 120,467 | $ | 174,580 |
In thousands, except per share amounts | August 2, 2020 | February 2, 2020 | August 4, 2019 | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 947,760 | $ | 432,162 | $ | 120,467 | ||||||
Accounts receivable, net | 128,737 | 111,737 | 111,114 | |||||||||
Merchandise inventories, net | ||||||||||||
Prepaid expenses | 109,495 | 90,426 | 117,017 | |||||||||
Other current assets | 27,098 | 20,766 | 21,693 | |||||||||
Total current assets | 2,255,430 | 1,755,635 | 1,558,019 | |||||||||
Property and equipment, net | 887,401 | 929,038 | 913,059 | |||||||||
Operating lease right-of-use | 1,146,229 | 1,166,383 | 1,208,528 | |||||||||
Deferred income taxes, net | 37,789 | 47,977 | 38,803 | |||||||||
Goodwill | 85,419 | 85,343 | 85,348 | |||||||||
Other long-term assets, net | 75,028 | 69,666 | 65,924 | |||||||||
Total assets | $ | 4,487,296 | $ | 4,054,042 | $ | 3,869,681 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 373,086 | $ | 521,235 | $ | 404,337 | ||||||
Accrued expenses | 158,407 | 175,003 | 127,137 | |||||||||
Gift card and other deferred revenue | 292,684 | 289,613 | 283,108 | |||||||||
Income taxes payable | 28,502 | 22,501 | 13,065 | |||||||||
Current debt | — | 299,818 | — | |||||||||
Borrowings under revolving line of credit | 487,823 | — | 60,000 | |||||||||
Operating lease liabilities | 221,575 | 227,923 | 222,978 | |||||||||
Other current liabilities | 102,086 | 73,462 | 76,254 | |||||||||
Total current liabilities | 1,664,163 | 1,609,555 | 1,186,879 | |||||||||
Deferred rent and lease incentives | 24,684 | 27,659 | 28,618 | |||||||||
Long-term debt | 298,995 | — | 299,719 | |||||||||
Long-term operating lease liabilities | 1,080,622 | 1,094,579 | 1,148,031 | |||||||||
Other long-term liabilities | 85,910 | 86,389 | 84,831 | |||||||||
Total liabilities | 3,154,374 | 2,818,182 | 2,748,078 | |||||||||
Commitments and contingencies – See Note F | ||||||||||||
Stockholders’ equity | ||||||||||||
Preferred stock: $.01 par value; 7,500 shares authorized; NaN issued | — | — | — | |||||||||
Common stock: $.01 par value; 253,125 shares authorized; 77,796, 77,137 and 78,203 shares issued and outstanding at August 2, 2020, February 2, 2020 and August 4, 2019, respectively | 778 | 772 | 783 | |||||||||
Additional paid-in capital | 608,892 | 605,822 | 584,828 | |||||||||
Retained earnings | 736,772 | 644,794 | 552,454 | |||||||||
Accumulated other comprehensive loss | (12,921 | ) | (14,587 | ) | (15,488 | ) | ||||||
Treasury stock, at cost: 8, 14 and 14 shares as of August 2, 2020, February 2, 2020 and August 4, 2019, respectively | (599 | ) | (941 | ) | (974 | ) | ||||||
Total stockholders’ equity | 1,332,922 | 1,235,860 | 1,121,603 | |||||||||
Total liabilities and stockholders’ equity | $ | 4,487,296 | $ | 4,054,042 | $ | 3,869,681 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||
In thousands | Shares | Amount | ||||||||||||||||||||||||||
Balance at February 2, 2020 | 77,137 | $ | 772 | $ | 605,822 | $ | 644,794 | $ | (14,587 | ) | $ | (941 | ) | $ | 1,235,860 | |||||||||||||
Net earnings | — | — | — | 35,423 | — | — | 35,423 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (5,276 | ) | — | (5,276 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 549 | — | 549 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) on derivative financial instruments, net of tax | — | — | — | — | (37 | ) | — | (37 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 622 | 6 | (28,747 | ) | — | — | (171 | ) | (28,912 | ) | ||||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (499 | ) | (14 | ) | — | 513 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 19,608 | — | — | — | 19,608 | |||||||||||||||||||||
Dividends declared | — | — | — | (38,286 | ) | — | — | (38,286 | ) | |||||||||||||||||||
Balance at May 3, 2020 | 77,759 | $ | 778 | $ | 596,184 | $ | 641,917 | $ | (19,351 | ) | $ | (599 | ) | $ | 1,218,929 | |||||||||||||
Net earnings | — | — | — | 134,564 | — | — | 134,564 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 6,737 | — | 6,737 | |||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (200 | ) | — | (200 | ) | |||||||||||||||||||
Reclassification adjustment for realized (gain) on derivative financial instruments, net of tax | — | — | — | — | (107 | ) | — | (107 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 37 | — | (677 | ) | — | — | — | (677 | ) | |||||||||||||||||||
Stock-based compensation expense | — | — | 13,385 | — | — | — | 13,385 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,709 | ) | — | — | (39,709 | ) | |||||||||||||||||||
Balance at August 2, 2020 | 77,796 | $ | 778 | $ | 608,892 | $ | 736,772 | $ | (12,921 | ) | $ | (599 | ) | $ | 1,332,922 |
1 | Amounts are shown net of shares withheld for employee taxes . |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||
In thousands | Shares | Amount | ||||||||||||||||||||||||||
Balance at February 3, 2019 | 78,813 | $ | 789 | $ | 581,900 | $ | 584,333 | $ | (11,073 | ) | $ | (235 | ) | $ | 1,155,714 | |||||||||||||
Net earnings | — | — | — | 52,656 | — | — | 52,656 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (3,009 | ) | — | (3,009 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 204 | — | 204 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (67 | ) | — | (67 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 571 | 5 | (25,298 | ) | — | — | (113 | ) | (25,406 | ) | ||||||||||||||||||
Repurchases of common stock | (576 | ) | (6 | ) | (2,874 | ) | (30,010 | ) | — | (958 | ) | (33,848 | ) | |||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (332 | ) | — | — | 332 | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 18,376 | — | — | — | 18,376 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,549 | ) | — | — | (39,549 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 2 | — | — | — | (3,303 | ) | — | — | (3,303 | ) | |||||||||||||||||||
Balance at May 5, 2019 | 78,808 | $ | 788 | $ | 571,772 | $ | 564,127 | $ | (13,945 | ) | $ | (974 | ) | $ | 1,121,768 | |||||||||||||
Net earnings | — | — | — | 62,648 | — | — | 62,648 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (1,251 | ) | — | (1,251 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (132 | ) | — | (132 | ) | |||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (160 | ) | — | (160 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 31 | 1 | (482 | ) | — | — | — | (481 | ) | |||||||||||||||||||
Repurchases of common stock | (636 | ) | (6 | ) | (3,170 | ) | (35,107 | ) | — | — | (38,283 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 16,708 | — | — | — | 16,708 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,214 | ) | — | — | (39,214 | ) | |||||||||||||||||||
Balance at August 4, 2019 | 78,203 | $ | 783 | $ | 584,828 | $ | 552,454 | $ | (15,488 | ) | $ | (974 | ) | $ | 1,121,603 | |||||||||||||
1 | Amounts are shown net of shares withheld for employee taxes. |
2 | Relates to our adoption of ASU 2016-02, Leases, in fiscal 2019. See Note A. |
Twenty-six Weeks Ended | ||||||||
In thousands | August 2, 2020 | August 4, 2019 | ||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 169,987 | $ | 115,304 | ||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 93,120 | 93,744 | ||||||
(Gain) loss on disposal/impairment of assets | 25,408 | (6 | ) | |||||
Amortization of deferred lease incentives | (2,975 | ) | (4,228 | ) | ||||
Non-cash lease expense | 108,448 | 105,437 | ||||||
Deferred income taxes | (2,229 | ) | (8,428 | ) | ||||
Tax benefit related to stock-based awards | 12,694 | 14,110 | ||||||
Stock-based compensation expense | 33,395 | 35,401 | ||||||
Other | 255 | 92 | ||||||
Changes in: | ||||||||
Accounts receivable | (16,740 | ) | (4,430 | ) | ||||
Merchandise inventories | 60,055 | (63,576 | ) | |||||
Prepaid expenses and other assets | (30,968 | ) | (24,506 | ) | ||||
Accounts payable | (141,602 | ) | (127,511 | ) | ||||
Accrued expenses and other liabilities | 12,117 | (30,677 | ) | |||||
Gift card and other deferred revenue | 2,936 | (7,173 | ) | |||||
Operating lease liabilities | (113,489 | ) | (111,782 | ) | ||||
Income taxes payable | 5,988 | (8,407 | ) | |||||
Net cash provided by (used in) operating activities | 216,400 | (26,636 | ) | |||||
�� | ||||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (76,123 | ) | (77,189 | ) | ||||
Other | 241 | 470 | ||||||
Net cash used in investing activities | (75,882 | ) | (76,719 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings under revolving line of credit | 487,823 | 60,000 | ||||||
Payment of dividends | (79,274 | ) | (75,453 | ) | ||||
Tax withholdings related to stock-based awards | (29,589 | ) | (25,887 | ) | ||||
Debt issuance costs | (1,050 | ) | — | |||||
Repurchases of common stock | — | (72,131 | ) | |||||
Net cash provided by (used in) financing activities | 377,910 | (113,471 | ) | |||||
Effect of exchange rates on cash and cash equivalents | (2,830 | ) | (1,661 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 515,598 | (218,487 | ) | |||||
Cash and cash equivalents at beginning of period | 432,162 | 338,954 | ||||||
Cash and cash equivalents at end of period | $ | 947,760 | $ | 120,467 |
Shares | |||||
Balance at February | |||||
Granted | |||||
1 | 1,106,666 | ||||
Released 2 | (999,778 | ) | |||
Cancelled | (80,226 | ) | |||
Balance at August | |||||
Vested plus expected to vest at August |
1 | Excludes 267,000 restricted stock units for which the accounting grant date had not yet been determined as of August 2,2020 and, consequently, for which no expense has been recognized for the twenty-six weeks then ended . These awards reduced the shares available for future grant under the Plan. |
2 | Excludes 170,308 |
In thousands, except per share amounts | Net Earnings | Weighted Average Shares | Earnings Per Share | |||||||||
Thirteen weeks ended August 4, 2019 | ||||||||||||
Basic | $ | 62,648 | 78,488 | $ | 0.80 | |||||||
Effect of dilutive stock-based awards | 982 | |||||||||||
Diluted | $ | 62,648 | 79,470 | $ | 0.79 | |||||||
Thirteen weeks ended July 29, 2018 | ||||||||||||
Basic | $ | 51,713 | 82,342 | $ | 0.63 | |||||||
Effect of dilutive stock-based awards | 825 | |||||||||||
Diluted | $ | 51,713 | 83,167 | $ | 0.62 | |||||||
Twenty-six weeks ended August 4, 2019 | ||||||||||||
Basic | $ | 115,304 | 78,586 | $ | 1.47 | |||||||
Effect of dilutive stock-based awards | 1,047 | |||||||||||
Diluted | $ | 115,304 | 79,633 | $ | 1.45 | |||||||
Twenty-six weeks ended July 29, 2018 | ||||||||||||
Basic | $ | 96,881 | 82,867 | $ | 1.17 | |||||||
Effect of dilutive stock-based awards | 652 | |||||||||||
Diluted | $ | 96,881 | 83,519 | $ | 1.16 |
In thousands, except per share amounts | Net Earnings | Weighted Average Shares | Earnings Per Share | |||||||||
Thirteen weeks ended August 2, 2020 | ||||||||||||
Basic | $ | 134,564 | 77,783 | $ | 1.73 | |||||||
Effect of dilutive stock-based awards | 1,481 | |||||||||||
Diluted | $ | 134,564 | 79,264 | $ | 1.70 | |||||||
Thirteen weeks ended August 4, 2019 | ||||||||||||
Basic | $ | 62,648 | 78,488 | $ | 0.80 | |||||||
Effect of dilutive stock-based awards | 982 | |||||||||||
Diluted | $ | 62,648 | 79,470 | $ | 0.79 | |||||||
Twenty-six weeks ended August 2, 2020 | ||||||||||||
Basic | $ | 169,987 | 77,522 | $ | 2.19 | |||||||
Effect of dilutive stock-based awards | 1,319 | |||||||||||
Diluted | $ | 169,987 | 78,841 | $ | 2.16 | |||||||
Twenty-six weeks ended August 4, 2019 | ||||||||||||
Basic | $ | 115,304 | 78,586 | $ | 1.47 | |||||||
Effect of dilutive stock-based awards | 1,047 | |||||||||||
Diluted | $ | 115,304 | 79,633 | $ | 1.45 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||
In thousands | August 4, 2019 | July 29, 2018 | August 4, 2019 | July 29, 2018 | ||||||||||||
Pottery Barn | $ | 524,847 | $ | 506,460 | $ | 1,016,973 | $ | 996,831 | ||||||||
West Elm | 357,574 | 301,213 | 667,057 | 574,562 | ||||||||||||
Williams Sonoma | 191,374 | 195,178 | 386,267 | 396,156 | ||||||||||||
Pottery Barn Kids and Teen | 227,853 | 213,807 | 404,899 | 394,203 | ||||||||||||
Other 1 | 69,166 | 58,516 | 136,750 | 116,422 | ||||||||||||
Total 2 | $ | 1,370,814 | $ | 1,275,174 | $ | 2,611,946 | $ | 2,478,174 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||
In thousands | August 2, 2020 | August 4, 2019 | August 2, 2020 | August 4, 2019 | ||||||||||||
Pottery Barn | $ | 563,276 | $ | 524,847 | $ | 1,042,891 | $ | 1,016,973 | ||||||||
West Elm | 380,552 | 357,574 | 695,982 | 667,057 | ||||||||||||
Williams Sonoma | 243,133 | 191,374 | 442,435 | 386,267 | ||||||||||||
Pottery Barn Kids and Teen | 235,987 | 227,853 | 424,539 | 404,899 | ||||||||||||
Other 1 | 67,829 | 69,166 | 120,133 | 136,750 | ||||||||||||
Total 2 | $ | 1,490,777 | $ | 1,370,814 | $ | 2,725,980 | $ | 2,611,946 |
1 | Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and Graham . |
2 | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately million and million for the thirteen weeks ended August 2, 2020 and August 4, 2019, million and million for the twenty-six weeks ended August |
In thousands | August 4, 2019 | July 29, 2018 | ||||||
U.S. | $ | 2,146,995 | $ | 1,077,547 | ||||
International | 164,667 | 52,938 | ||||||
Total | $ | 2,311,662 | $ | 1,130,485 |
In thousands | August 2, 2020 | August 4, 2019 | ||||||
U.S. | $ | 2,076,079 | $ | 2,146,995 | ||||
International | 155,787 | 164,667 | ||||||
Total | $ | 2,231,866 | $ | 2,311,662 |
In thousands | August 4, 2019 | July 29, 2018 | ||||||
Contracts designated as cash flow hedges | $ | 6,000 | $ | 20,800 | ||||
Contracts not designated as cash flow hedges | $ | — | $ | 6,600 |
In thousands | August 2, 2020 | August 4, 2019 | ||||||
Contracts designated as cash flow hedges | $ | 6,800 | $ | 6,000 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||||||||
August 4, 2019 | July 29, 2018 | August 4, 2019 | July 29, 2018 | |||||||||||||||||||||||||||||
In thousands | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | ||||||||||||||||||||||||
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | $ | 886,953 | $ | 397,696 | $ | 811,232 | $ | 389,776 | $ | 1,683,754 | $ | 767,895 | $ | 1,582,068 | $ | 755,390 | ||||||||||||||||
Gain (loss) recognized in income | ||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | $ | 187 | $ | — | $ | (21 | ) | $ | 50 | $ | 295 | $ | — | $ | (73 | ) | $ | 33 | ||||||||||||||
Derivatives not designated as hedging instruments | $ | — | $ | 24 | $ | — | $ | 1,183 | $ | — | $ | 18 | $ | — | $ | 3,943 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||||||||
August 2, 2020 | August 4, 2019 | August 2, 2020 | August 4, 2019 | |||||||||||||||||||||||||||||
In thousands | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | ||||||||||||||||||||||||
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | $ | 939,575 | $ | 365,841 | $ | 886,953 | $ | 397,696 | $ | 1,760,518 | $ | 731,456 | $ | 1,683,754 | $ | 767,895 | ||||||||||||||||
Gain (loss) recognized in income | ||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | $ | 145 | $ | — | $ | 187 | $ | — | $ | 195 | $ | — | $ | 295 | $ | — | ||||||||||||||||
Derivatives not designated as hedging instruments | $ | — | $ | — | $ | — | $ | 24 | $ | — | $ | 2 | $ | — | $ | 18 | ||||||||||||||||
In thousands | August 4, 2019 | July 29, 2018 | ||||||
Derivatives designated as cash flow hedges: | ||||||||
Other current assets | $ | 142 | $ | 690 | ||||
Other long-term assets | $ | — | $ | 57 | ||||
Derivatives not designated as hedging instruments: | ||||||||
Other current assets | $ | — | $ | 5 |
In thousands | August 2, 2020 | August 4, 2019 | ||||||
Derivatives designated as cash flow hedges: | ||||||||
Other current assets | $ | 150 | $ | 142 | ||||
• | Level 1: inputs which include quoted prices in active markets for identical assets or liabilities; |
• | Level 2: inputs which include observable inputs other than Level 1 inputs, such as quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and |
• | Level 3: inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. |
In thousands | Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||
Balance at February 3, 2019 | $ | (11,259 | ) | $ | 186 | $ | (11,073 | ) | ||||
Foreign currency translation adjustments | (3,009 | ) | (3,009 | ) | ||||||||
Change in fair value of derivative financial instruments | — | 204 | 204 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | — | (67 | ) | (67 | ) | |||||||
Other comprehensive income (loss) | (3,009 | ) | 137 | (2,872 | ) | |||||||
Balance at May 5, 2019 | (14,268 | ) | 323 | (13,945 | ) | |||||||
Foreign currency translation adjustments | (1,251 | ) | — | (1,251 | ) | |||||||
Change in fair value of derivative financial instruments | — | (132 | ) | (132 | ) | |||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | — | (160 | ) | (160 | ) | |||||||
Other comprehensive income (loss) | (1,251 | ) | (292 | ) | (1,543 | ) | ||||||
Balance at August 4, 2019 | $ | (15,519 | ) | $ | 31 | $ | (15,488 | ) | ||||
Balance at January 28, 2018 | $ | (6,227 | ) | $ | (555 | ) | $ | (6,782 | ) | |||
Foreign currency translation adjustments | (1,145 | ) | — | (1,145 | ) | |||||||
Change in fair value of derivative financial instruments | — | 1,123 | 1,123 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | — | 49 | 49 | |||||||||
Other comprehensive income (loss) | (1,145 | ) | 1,172 | 27 | ||||||||
Balance at April 29, 2018 | (7,372 | ) | 617 | (6,755 | ) | |||||||
Foreign currency translation adjustments | (2,993 | ) | — | (2,993 | ) | |||||||
Change in fair value of derivative financial instruments | — | 6 | 6 | |||||||||
Other comprehensive income (loss) | (2,993 | ) | 6 | (2,987 | ) | |||||||
Balance at July 29, 2018 | $ | (10,365 | ) | $ | 623 | $ | (9,742 | ) |
In thousands | Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||
Balance at February 2, 2020 | $ | (14,593 | ) | $ | 6 | $ | (14,587 | ) | ||||
Foreign currency translation adjustments | (5,276 | ) | — | (5,276 | ) | |||||||
Change in fair value of derivative financial instruments | — | 549 | 549 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (37 | ) | (37 | ) | |||||||
Other comprehensive income (loss) | (5,276 | ) | 512 | (4,764 | ) | |||||||
Balance at May 3, 2020 | (19,869 | ) | 518 | (19,351 | ) | |||||||
Foreign currency translation adjustments | 6,737 | 0 | 6,737 | |||||||||
Change in fair value of derivative financial instruments | — | (200 | ) | (200 | ) | |||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (107 | ) | (107 | ) | |||||||
Other comprehensive income (loss) | 6,737 | (307 | ) | 6,430 | ||||||||
Balance at August 2, 2020 | $ | (13,132 | ) | $ | 211 | $ | (12,921 | ) | ||||
Balance at February 3, 2019 | $ | (11,259 | ) | $ | 186 | $ | (11,073 | ) | ||||
Foreign currency translation adjustments | (3,009 | ) | 0 | (3,009 | ) | |||||||
Change in fair value of derivative financial instruments | — | 204 | 204 |
Working capital and other assets | $ | 718,000 | ||
Property and equipment, net | 2,049,000 | |||
Intangible assets | 18,300,000 | |||
Liabilities | (6,886,000 | ) | ||
Total identifiable net assets acquired | $ | 14,181,000 | ||
Goodwill | 66,631,000 | |||
Total purchase consideration | $ | 80,812,000 |
In thousands | Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (67 | ) | (67 | ) | |||||||
Other comprehensive income (loss) | (3,009 | ) | 137 | (2,872 | ) | |||||||
Balance at May 5, 2019 | (14,268 | ) | 323 | (13,945 | ) | |||||||
Foreign currency translation adjustments | (1,251 | ) | — | (1,251 | ) | |||||||
Change in fair value of derivative financial instruments | — | (132 | ) | (132 | ) | |||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (160 | ) | (160 | ) | |||||||
Other comprehensive income (loss) | (1,251 | ) | (292 | ) | (1,543 | ) | ||||||
Balance at August 4, 2019 | $ | (15,519 | ) | $ | 31 | $ | (15,488 | ) |
1 | Refer to Note H for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Condensed Consolidated Statements of Earnings. |
In thousands | Thirteen weeks ended August 4, 2019 | Twenty-six weeks ended August 4, 2019 | ||||||
Operating lease costs | $ | 66,143 | $ | 131,111 | ||||
Variable lease costs | 5,129 | 9,763 | ||||||
Total lease costs | $ | 71,272 | $ | 140,874 |
In thousands | Thirteen weeks ended August 4, 2019 | Twenty-six weeks ended | ||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 71,580 | $ | �� 141,394 | ||||
Net additions to right-of-use assets | 63,871 | 82,393 |
In thousands | ||||
Remaining fiscal 2019 | $ | 143,927 | ||
Fiscal 2020 | 265,375 | |||
Fiscal 2021 | 233,052 | |||
Fiscal 2022 | 201,593 | |||
Fiscal 2023 | 170,283 | |||
Fiscal 2024 | 146,808 | |||
Fiscal 2025 and thereafter | 441,650 | |||
Total lease payments | 1,602,688 | |||
Less interest | (231,679 | ) | ||
Total operating lease liability | 1,371,009 | |||
Less current operating lease liability | (222,978 | ) | ||
Total non-current operating lease liability | $ | 1,148,031 |
In thousands | ||||
Fiscal 2019 | $ | 292,387 | ||
Fiscal 2020 | 262,429 | |||
Fiscal 2021 | 225,755 | |||
Fiscal 2022 | 190,263 | |||
Fiscal 2023 | 160,308 | |||
Thereafter | 559,802 | |||
Total | $ | 1,690,944 |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||
Comparable brand revenue growth (decline) | August 4, 2019 | July 29, 2018 | August 4, 2019 | July 29, 2018 | ||||||||||||
Pottery Barn | 4.2 | % | 2.0 | % | 2.9 | % | 2.3 | % | ||||||||
West Elm | 17.5 | % | 9.5 | % | 14.8 | % | 9.2 | % | ||||||||
Williams Sonoma | (1.1 | %) | 1.6 | % | (1.3 | %) | 3.6 | % | ||||||||
Pottery Barn Kids and Teen | 3.7 | % | 5.7 | % | 2.6 | % | 5.5 | % | ||||||||
Total 1 | 6.5 | % | 4.6 | % | 5.1 | % | 5.1 | % |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||
Comparable brand revenue growth (decline) | August 2, 2020 | August 4, 2019 | August 2, 2020 | August 4, 2019 | ||||||||||||
Pottery Barn | 8.1 | % | 4.2 | % | 3.6 | % | 2.9 | % | ||||||||
West Elm | 7.0 | % | 17.5 | % | 5.3 | % | 14.8 | % | ||||||||
Williams Sonoma | 29.4 | % | (1.1 | %) | 17.4 | % | (1.3 | %) | ||||||||
Pottery Barn Kids and Teen | 4.8 | % | 3.7 | % | 6.4 | % | 2.6 | % | ||||||||
Total 1 | 10.5 | % | 6.5 | % | 6.7 | % | 5.1 | % |
1 | Total comparable brand revenue growth includes the results of Rejuvenation and Mark and Graham. |
Store Count | Average Leased Square Footage Per Store | |||||||||||||||||||||||||||
May 5, 2019 | Openings | Closings | August 4, 2019 | July 29, 2018 | August 4, 2019 | July 29, 2018 | ||||||||||||||||||||||
Williams Sonoma | 219 | — | (1 | ) | 218 | 226 | 6,800 | 6,800 | ||||||||||||||||||||
Pottery Barn | 205 | 2 | (2 | ) | 205 | 205 | 14,400 | 13,900 | ||||||||||||||||||||
West Elm | 113 | — | (1 | ) | 112 | 109 | 13,100 | 13,100 | ||||||||||||||||||||
Pottery Barn Kids | 78 | — | — | 78 | 84 | 7,500 | 7,400 | |||||||||||||||||||||
Rejuvenation | 10 | — | — | 10 | 8 | 8,500 | 8,800 | |||||||||||||||||||||
Total | 625 | 2 | (4 | ) | 623 | 632 | 10,600 | 10,300 | ||||||||||||||||||||
Store selling square footage at period-end | 4,124,000 | 4,058,000 | ||||||||||||||||||||||||||
Store leased square footage at period-end | 6,587,000 | 6,504,000 |
Store Count | Average Leased Square Footage Per Store | |||||||||||||||||||||||||||
May 3, 2020 1 | Openings | Closings | August 2, 2020 1 | August 4, 2019 | August 2, 2020 | August 4, 2019 | ||||||||||||||||||||||
Williams Sonoma | 212 | — | (2 | ) | 210 | 218 | 6,800 | 6,800 | ||||||||||||||||||||
Pottery Barn | 201 | — | — | 201 | 205 | 14,400 | 14,400 | |||||||||||||||||||||
West Elm | 119 | 3 | (1 | ) | 121 | 112 | 13,200 | 13,100 | ||||||||||||||||||||
Pottery Barn Kids | 74 | — | (2 | ) | 72 | 78 | 7,800 | 7,500 | ||||||||||||||||||||
Rejuvenation | 10 | — | — | 10 | 10 | 8,500 | 8,500 | |||||||||||||||||||||
Total | 616 | 3 | (5 | ) | 614 | 623 | 10,700 | 10,600 |
Store Count | Average Leased Square Footage Per Store | |||||||||||||||||||||
May 3, 2020 1 | Openings | Closings | August 2, 2020 1 | August 4, 2019 | August 2, 2020 | August 4, 2019 | ||||||||||||||||
Store selling square footage at period-end | 4,145,000 | 4,124,000 | ||||||||||||||||||||
Store leased square footage at period-end | 6,571,000 | 6,587,000 |
1 | Store counts as of August 2, 2020 and May 3,2020 do not exclude those stores temporarily closed due to COVID-19. |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||||||||
In thousands | August 4, 2019 | % Net Revenues | July 29, 2018 | % Net Revenues | August 4, 2019 | % Net Revenues | July 29, 2018 | % Net Revenues | ||||||||||||||||||||||||
Cost of goods sold 1 | $ | 886,953 | 64.7 | % | $ | 811,232 | 63.6 | % | $ | 1,683,754 | 64.5 | % | $ | 1,582,068 | 63.8 | % |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||||||||
In thousands | August 2, 2020 | % Net Revenues | August 4, 2019 | % Net Revenues | August 2, 2020 | % Net Revenues | August 4, 2019 | % Net Revenues | ||||||||||||||||||||||||
Cost of goods sold 1 | $ | 939,575 | 63.0 | % | $ | 886,953 | 64.7 | % | $ | 1,760,518 | 64.6 | % | $ | 1,683,754 | 64.5 | % |
1 | Includes total occupancy expenses of year-to-date year-to-date |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||||||||
In thousands | August 4, 2019 | % Net Revenues | July 29, 2018 | % Net Revenues | August 4, 2019 | % Net Revenues | July 29, 2018 | % Net Revenues | ||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 397,696 | 29.0 | % | $ | 389,776 | 30.6 | % | $ | 767,895 | 29.4 | % | $ | 755,390 | 30.5 | % |
Thirteen Weeks Ended | Twenty-six Weeks Ended | |||||||||||||||||||||||||||||||
In thousands | August 2, 2020 | % Net Revenues | August 4, 2019 | % Net Revenues | August 2, 2020 | % Net Revenues | August 4, 2019 | % Net Revenues | ||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 365,841 | 24.5 | % | $ | 397,696 | 29.0 | % | $ | 731,456 | 26.8 | % | $ | 767,895 | 29.4 | % |
Fiscal period | Total Number of Shares Purchased 1 | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program 1 | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program | ||||||||||||
May 6, 2019 – June 2, 2019 | 223,925 | $ | 53.61 | 223,925 | $ | 677,963,000 | ||||||||||
June 3, 2019 – June 30, 2019 | 188,106 | $ | 60.55 | 188,106 | $ | 666,573,000 | ||||||||||
July 1, 2019 – August 4, 2019 | 223,495 | $ | 66.62 | 223,495 | $ | 651,685,000 | ||||||||||
Total | 635,526 | $ | 60.24 | 635,526 | $ | 651,685,000 |
Exhibit Number | Exhibit Description | |||
3.1 | ||||
First Amendment to Seventh Amended and Restated Credit Agreement, dated January 8, 2018 (as amended on May 11, 2020), between the Company and Bank of America, N.A., as administrative agent, letter of credit issuer and swingline lender, Wells Fargo Bank, National Association, as syndication agent and the lenders party thereto | ||||
10.2* | 364-Day Credit Agreement, dated May 11, 2020, among the Company and Bank of America, N.A., as agent, Fifth Third Bank, National Association and U.S. Bank National Association, as co-syndication agents and the lenders party thereto | |||
31.1* | Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended | |||
31.2* | ||||
32.1* | ||||
32.2* | ||||
101* | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter endedAugust 2 | |||
104* | ||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted under Exhibit 101). |
* | Filed herewith. |
WILLIAMS-SONOMA, INC. | |||
By: | /s/ Julie Whalen | ||
Julie Whalen | |||
Duly Authorized Officer and Chief Financial Officer |