☒ | 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 |
94-2203880 | ||
(I.R.S. Employer Identification No.) | ||
94109 | ||
(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 | ☐ |
PART I. FINANCIAL INFORMATION | |||||||||||
PAGE | |||||||||||
Item 1. | |||||||||||
Item | 2. | ||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. OTHER INFORMATION | |||||||||||
Item 1. | |||||||||||
Item | 1A. | ||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. |
Thirteen Weeks Ended | Thirteen Weeks Ended | ||||||||||||||||||||||||||||||
In thousands, except per share amounts | May 3, 2020 | May 5, 2019 | In thousands, except per share amounts | May 2, 2021 | May 3, 2020 | ||||||||||||||||||||||||||
Net revenues | $ | 1,235,203 | $ | 1,241,132 | Net revenues | $ | 1,749,029 | $ | 1,235,203 | ||||||||||||||||||||||
Cost of goods sold | 820,943 | 796,801 | Cost of goods sold | 996,176 | 820,943 | ||||||||||||||||||||||||||
Gross profit | 414,260 | 444,331 | Gross profit | 752,853 | 414,260 | ||||||||||||||||||||||||||
Selling, general and administrative expenses | 365,615 | 370,199 | Selling, general and administrative expenses | 477,676 | 365,615 | ||||||||||||||||||||||||||
Operating income | 48,645 | 74,132 | Operating income | 275,177 | 48,645 | ||||||||||||||||||||||||||
Interest expense, net | 2,159 | 2,253 | Interest expense, net | 1,872 | 2,159 | ||||||||||||||||||||||||||
Earnings before income taxes | 46,486 | 71,879 | Earnings before income taxes | 273,305 | 46,486 | ||||||||||||||||||||||||||
Income taxes | 11,063 | 19,223 | Income taxes | 45,503 | 11,063 | ||||||||||||||||||||||||||
Net earnings | $ | 35,423 | $ | 52,656 | Net earnings | $ | 227,802 | $ | 35,423 | ||||||||||||||||||||||
Basic earnings per share | $ | 0.46 | $ | 0.67 | Basic earnings per share | $ | 3.01 | $ | 0.46 | ||||||||||||||||||||||
Diluted earnings per share | $ | 0.45 | $ | 0.66 | Diluted earnings per share | $ | 2.90 | $ | 0.45 | ||||||||||||||||||||||
Shares used in calculation of earnings per share: | Shares used in calculation of earnings per share: | ||||||||||||||||||||||||||||||
Basic | 77,262 | 78,683 | Basic | 75,800 | 77,262 | ||||||||||||||||||||||||||
Diluted | 78,399 | 79,867 | Diluted | 78,485 | 78,399 |
Thirteen Weeks Ended | Thirteen Weeks Ended | ||||||||||||||||||||||||||||||
In thousands | May 3, 2020 | May 5, 2019 | In thousands | May 2, 2021 | May 3, 2020 | ||||||||||||||||||||||||||
Net earnings | $ | 35,423 | $ | 52,656 | Net earnings | $ | 227,802 | $ | 35,423 | ||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (5,276 | ) | (3,009 | ) | Foreign currency translation adjustments | 3,700 | (5,276) | ||||||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax of $196 and $74 | 549 | 204 | |||||||||||||||||||||||||||||
Reclassification adjustment for realized (gain) on derivative financial instruments, net of tax of $13 and $24 | (37 | ) | (67 | ) | |||||||||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $(241) and $196 | Change in fair value of derivative financial instruments, net of tax (tax benefit) of $(241) and $196 | (665) | 549 | ||||||||||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $(55) and $13 | Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $(55) and $13 | 153 | (37) | ||||||||||||||||||||||||||||
Comprehensive income | $ | 30,659 | $ | 49,784 | Comprehensive income | $ | 230,990 | $ | 30,659 |
In thousands, except per share amounts | May 3, 2020 | | February 2, 2020 | May 5, 2019 | ||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 861,002 | $ | 432,162 | $ | 107,683 | ||||||
Accounts receivable, net | 104,829 | 111,737 | 102,195 | |||||||||
Merchandise inventories, net | 1,070,681 | 1,100,544 | 1,155,427 | |||||||||
Prepaid expenses | 90,433 | 90,426 | 98,213 | |||||||||
Other current assets | 22,099 | 20,766 | 22,128 | |||||||||
Total current assets | 2,149,044 | 1,755,635 | 1,485,646 | |||||||||
Property and equipment, net | 907,219 | 929,038 | 916,030 | |||||||||
Operating lease right-of-use assets | 1,175,402 | 1,166,383 | 1,200,972 | |||||||||
Deferred income taxes, net | 33,320 | 47,977 | 34,215 | |||||||||
Goodwill | 85,335 | 85,343 | 85,357 | |||||||||
Other long-term assets, net | 67,795 | 69,666 | 66,145 | |||||||||
Total assets | $ | 4,418,115 | $ | 4,054,042 | $ | 3,788,365 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 423,375 | $ | 521,235 | $ | 385,646 | ||||||
Accrued expenses | 137,495 | 175,003 | 109,169 | |||||||||
Gift card and other deferred revenue | 299,353 | 289,613 | 291,839 | |||||||||
Income taxes payable | 24,049 | 22,501 | 24,384 | |||||||||
Current debt | 487,823 | 299,818 | — | |||||||||
Operating lease liabilities | 224,541 | 227,923 | 227,427 | |||||||||
Other current liabilities | 85,458 | 73,462 | 75,750 | |||||||||
Total current liabilities | 1,682,094 | 1,609,555 | 1,114,215 | |||||||||
Deferred rent and lease incentives | 26,254 | 27,659 | 30,536 | |||||||||
Long-term debt | 299,868 | — | 299,670 | |||||||||
Long-term operating lease liabilities | 1,109,473 | 1,094,579 | 1,139,625 | |||||||||
Other long-term liabilities | 81,497 | 86,389 | 82,551 | |||||||||
Total liabilities | 3,199,186 | 2,818,182 | 2,666,597 | |||||||||
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; 77,759, 77,137 and 78,808 shares issued and outstanding at May 3, 2020, February 2, 2020 and May 5, 2019, respectively | 778 | 772 | 788 | |||||||||
Additional paid-in capital | 596,184 | 605,822 | 571,772 | |||||||||
Retained earnings | 641,917 | 644,794 | 564,127 | |||||||||
Accumulated other comprehensive loss | (19,351 | ) | (14,587 | ) | (13,945 | ) | ||||||
Treasury stock, at cost: 8, 14 and 14 shares as of May 3, 2020, February 2, 2020 and May 5, 2019, respectively | (599 | ) | (941 | ) | (974 | ) | ||||||
Total stockholders’ equity | 1,218,929 | 1,235,860 | 1,121,768 | |||||||||
Total liabilities and stockholders’ equity | $ | 4,418,115 | $ | 4,054,042 | $ | 3,788,365 |
In thousands, except per share amounts | May 2, 2021 | January 31, 2021 | May 3, 2020 | ||||||||||||||
ASSETS | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 639,670 | $ | 1,200,337 | $ | 861,002 | |||||||||||
Accounts receivable, net | 142,459 | 143,728 | 104,829 | ||||||||||||||
Merchandise inventories, net | 1,087,528 | 1,006,299 | 1,070,681 | ||||||||||||||
Prepaid expenses | 58,837 | 93,822 | 90,433 | ||||||||||||||
Other current assets | 20,502 | 22,894 | 22,099 | ||||||||||||||
Total current assets | 1,948,996 | 2,467,080 | 2,149,044 | ||||||||||||||
Property and equipment, net | 875,384 | 873,894 | 907,219 | ||||||||||||||
Operating lease right-of-use assets | 1,054,746 | 1,086,009 | 1,175,402 | ||||||||||||||
Deferred income taxes, net | 57,499 | 61,854 | 33,320 | ||||||||||||||
Goodwill | 85,435 | 85,446 | 85,335 | ||||||||||||||
Other long-term assets, net | 88,180 | 87,141 | 67,795 | ||||||||||||||
Total assets | $ | 4,110,240 | $ | 4,661,424 | $ | 4,418,115 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 574,876 | $ | 542,992 | $ | 423,375 | |||||||||||
Accrued expenses | 174,139 | 267,592 | 137,495 | ||||||||||||||
Gift card and other deferred revenue | 389,640 | 373,164 | 299,353 | ||||||||||||||
Income taxes payable | 93,282 | 69,476 | 24,049 | ||||||||||||||
Current debt | 0 | 299,350 | 0 | ||||||||||||||
Borrowings under revolving line of credit | 0 | 0 | 487,823 | ||||||||||||||
Operating lease liabilities | 208,739 | 209,754 | 224,541 | ||||||||||||||
Other current liabilities | 78,597 | 85,672 | 85,458 | ||||||||||||||
Total current liabilities | 1,519,273 | 1,848,000 | 1,682,094 | ||||||||||||||
Deferred lease incentives | 19,505 | 20,612 | 26,254 | ||||||||||||||
Long-term debt | 0 | 0 | 299,868 | ||||||||||||||
Long-term operating lease liabilities | 999,288 | 1,025,057 | 1,109,473 | ||||||||||||||
Other long-term liabilities | 124,878 | 116,570 | 81,497 | ||||||||||||||
Total liabilities | 2,662,944 | 3,010,239 | 3,199,186 | ||||||||||||||
Commitments and contingencies – See Note F | 0 | 0 | 0 | ||||||||||||||
Stockholders’ equity | |||||||||||||||||
Preferred stock: $0.01 par value; 7,500 shares authorized; NaN issued | 0 | 0 | 0 | ||||||||||||||
Common stock: $0.01 par value; 253,125 shares authorized; 75,235, 76,340 and 77,759 shares issued and outstanding at May 2, 2021, January 31, 2021 and May 3, 2020, respectively | 753 | 764 | 778 | ||||||||||||||
Additional paid-in capital | 556,305 | 638,375 | 596,184 | ||||||||||||||
Retained earnings | 894,878 | 1,019,762 | 641,917 | ||||||||||||||
Accumulated other comprehensive loss | (3,929) | (7,117) | (19,351) | ||||||||||||||
Treasury stock, at cost: 4, 8 and 8 shares as of May 2, 2021, January 31, 2021 and May 3, 2020, respectively | (711) | (599) | (599) | ||||||||||||||
Total stockholders’ equity | 1,447,296 | 1,651,185 | 1,218,929 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,110,240 | $ | 4,661,424 | $ | 4,418,115 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In thousands | Shares | Amount | In thousands | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at February 2, 2020 | 77,137 | $ | 772 | $ | 605,822 | $ | 644,794 | $ | (14,587 | ) | $ | (941 | ) | $ | 1,235,860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 31, 2021 | Balance at January 31, 2021 | 76,340 | $ | 764 | $ | 638,375 | $ | 1,019,762 | $ | (7,117) | $ | (599) | $ | 1,651,185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | 35,423 | — | — | 35,423 | Net earnings | — | — | — | 227,802 | — | — | 227,802 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (5,276 | ) | — | (5,276 | ) | Foreign currency translation adjustments | — | — | — | — | 3,700 | — | 3,700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 549 | — | 549 | Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (665) | — | (665) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) on derivative financial instruments, net of tax | — | — | — | — | (67 | ) | — | (67 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | 153 | — | 153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion/release of stock-based awards 1 | 571 | 5 | (25,298 | ) | — | — | (113 | ) | (25,406 | ) | Conversion/release of stock-based awards 1 | 686 | 7 | (97,958) | — | — | (500) | (98,451) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (576 | ) | (6 | ) | (2,874 | ) | (30,010 | ) | — | (958 | ) | (33,848 | ) | Repurchases of common stock | (1,791) | (18) | (9,239) | (306,272) | — | — | (315,529) | ||||||||||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (332 | ) | — | — | 332 | — | Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (344) | (44) | — | 388 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 18,376 | — | — | — | 18,376 | Stock-based compensation expense | — | — | 25,471 | — | — | — | 25,471 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | (39,549 | ) | — | — | (39,549 | ) | Dividends declared | — | — | — | (46,370) | — | — | (46,370) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 2, 2021 | Balance at May 2, 2021 | 75,235 | $ | 753 | $ | 556,305 | $ | 894,878 | $ | (3,929) | $ | (711) | $ | 1,447,296 |
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) loss 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 | 0 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
1Amounts are shown net of shares withheld for employee taxes. |
Thirteen Weeks Ended | |||||||||||
In thousands | May 2, 2021 | May 3, 2020 | |||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | 227,802 | $ | 35,423 | |||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 47,922 | 46,224 | |||||||||
Loss on disposal/impairment of assets | 195 | 16,185 | |||||||||
Amortization of deferred lease incentives | (1,108) | (1,405) | |||||||||
Non-cash lease expense | 52,955 | 54,262 | |||||||||
Deferred income taxes | (3,981) | (2,585) | |||||||||
Tax benefit related to stock-based awards | 10,146 | 12,039 | |||||||||
Stock-based compensation expense | 26,330 | 19,703 | |||||||||
Other | (223) | 129 | |||||||||
Changes in: | |||||||||||
Accounts receivable | 1,522 | 8,950 | |||||||||
Merchandise inventories | (79,726) | 28,513 | |||||||||
Prepaid expenses and other assets | 34,562 | (215) | |||||||||
Accounts payable | 27,910 | (92,871) | |||||||||
Accrued expenses and other liabilities | (90,883) | (29,050) | |||||||||
Gift card and other deferred revenue | 16,174 | 9,960 | |||||||||
Operating lease liabilities | (53,633) | (57,629) | |||||||||
Income taxes payable | 22,917 | 6,240 | |||||||||
Net cash provided by operating activities | 238,881 | 53,873 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (42,360) | (42,321) | |||||||||
Other | 93 | 242 | |||||||||
Net cash used in investing activities | (42,267) | (42,079) | |||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of common stock | (315,529) | 0 | |||||||||
Repayment of long-term debt | (300,000) | 0 | |||||||||
Tax withholdings related to stock-based awards | (98,451) | (28,912) | |||||||||
Payment of dividends | (45,576) | (39,391) | |||||||||
Borrowings under revolving line of credit | 0 | 487,823 | |||||||||
Net cash (used in) provided by financing activities | (759,556) | 419,520 | |||||||||
Effect of exchange rates on cash and cash equivalents | 2,275 | (2,474) | |||||||||
Net (decrease) increase in cash and cash equivalents | (560,667) | 428,840 | |||||||||
Cash and cash equivalents at beginning of period | 1,200,337 | 432,162 | |||||||||
Cash and cash equivalents at end of period | $ | 639,670 | $ | 861,002 | |||||||
Thirteen Weeks Ended | ||||||||
In thousands | May 3, 2020 | May 5, 2019 | ||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 35,423 | $ | 52,656 | ||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 46,224 | 46,838 | ||||||
(Gain) loss on disposal/impairment of assets | 16,185 | (323 | ) | |||||
Amortization of deferred lease incentives | (1,405 | ) | (2,306 | ) | ||||
Non-cash lease expense | 54,262 | 51,596 | ||||||
Deferred income taxes | (2,585 | ) | (4,126 | ) | ||||
Tax benefit related to stock-based awards | 12,039 | 14,898 | ||||||
Stock-based compensation expense | 19,703 | 18,529 | ||||||
Other | 129 | 69 | ||||||
Changes in: | ||||||||
Accounts receivable | 8,950 | 4,684 | ||||||
Merchandise inventories | 28,513 | (31,460 | ) | |||||
Prepaid expenses and other assets | (215 | ) | (4,914 | ) | ||||
Accounts payable | (92,871 | ) | (144,399 | ) | ||||
Accrued expenses and other liabilities | (29,050 | ) | (49,196 | ) | ||||
Gift card and other deferred revenue | 9,960 | 1,558 | ||||||
Operating lease liabilities | (57,629 | ) | (55,099 | ) | ||||
Income taxes payable | 6,240 | 2,915 | ||||||
Net cash provided by (used in) operating activities | 53,873 | (98,080 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (42,321 | ) | (36,148 | ) | ||||
Other | 242 | 107 | ||||||
Net cash used in investing activities | (42,079 | ) | (36,041 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings under revolving line of credit | 487,823 | — | ||||||
Payment of dividends | (39,391 | ) | (36,868 | ) | ||||
Tax withholdings related to stock-based awards | (28,912 | ) | (25,406 | ) | ||||
Repurchases of common stock | — | (33,848 | ) | |||||
Net cash provided by (used in) financing activities | 419,520 | (96,122 | ) | |||||
Effect of exchange rates on cash and cash equivalents | (2,474 | ) | (1,028 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 428,840 | (231,271 | ) | |||||
Cash and cash equivalents at beginning of period | 432,162 | 338,954 | ||||||
Cash and cash equivalents at end of period | $ | 861,002 | $ | 107,683 |
Shares | |||||||
Balance at January 31, 2021 | |||||||
Granted | 359,230 | ||||||
Granted, with vesting subject to performance conditions | 107,075 | ||||||
(1,029,356) | |||||||
(29,652) | |||||||
Balance at May | 2,526,181 | ||||||
Vested plus expected to vest at May | 2,309,979 |
In thousands, except per share amounts | Net Earnings | Weighted Average Shares | Earnings Per Share | In thousands, except per share amounts | Net Earnings | Weighted Average Shares | Earnings Per Share | ||||||||||||||||||||||
Thirteen weeks ended May 2, 2021 | Thirteen weeks ended May 2, 2021 | ||||||||||||||||||||||||||||
Basic | Basic | $ | 227,802 | 75,800 | $ | 3.01 | |||||||||||||||||||||||
Effect of dilutive stock-based awards | Effect of dilutive stock-based awards | 2,685 | |||||||||||||||||||||||||||
Diluted | Diluted | $ | 227,802 | 78,485 | $ | 2.90 | |||||||||||||||||||||||
Thirteen weeks ended May 3, 2020 | Thirteen weeks ended May 3, 2020 | ||||||||||||||||||||||||||||
Basic | $ | 35,423 | 77,262 | $ | 0.46 | Basic | $ | 35,423 | 77,262 | $ | 0.46 | ||||||||||||||||||
Effect of dilutive stock-based awards | 1,137 | Effect of dilutive stock-based awards | 1,137 | ||||||||||||||||||||||||||
Diluted | $ | 35,423 | 78,399 | $ | 0.45 | Diluted | $ | 35,423 | 78,399 | $ | 0.45 | ||||||||||||||||||
Thirteen weeks ended May 5, 2019 | |||||||||||||||||||||||||||||
Basic | $ | 52,656 | 78,683 | $ | 0.67 | ||||||||||||||||||||||||
Effect of dilutive stock-based awards | 1,184 | ||||||||||||||||||||||||||||
Diluted | $ | 52,656 | 79,867 | $ | 0.66 |
Thirteen Weeks Ended | |||||||||||||||||||||||
In thousands | May 2, 2021 | May 3, 2020 | |||||||||||||||||||||
Pottery Barn | $ | 679,055 | $ | 479,615 | |||||||||||||||||||
West Elm | 477,317 | 315,430 | |||||||||||||||||||||
Williams Sonoma | 265,607 | 199,302 | |||||||||||||||||||||
Pottery Barn Kids and Teen | 236,067 | 188,552 | |||||||||||||||||||||
Other 1 | 90,983 | 52,304 | |||||||||||||||||||||
Total 2 | $ | 1,749,029 | $ | 1,235,203 |
Thirteen Weeks Ended | ||||||||
In thousands | May 3, 2020 | May 5, 2019 | ||||||
Pottery Barn | $ | 479,615 | $ | 492,126 | ||||
West Elm | 315,430 | 309,483 | ||||||
Williams Sonoma | 199,302 | 194,894 | ||||||
Pottery Barn Kids and Teen | 188,552 | 177,046 | ||||||
Other 1 | 52,304 | 67,583 | ||||||
Total 2 | $ | 1,235,203 | $ | 1,241,132 |
In thousands | May 2, 2021 | May 3, 2020 | |||||||||
U.S. | $ | 2,012,572 | $ | 2,117,469 | |||||||
International | 148,672 | 151,602 | |||||||||
Total | $ | 2,161,244 | $ | 2,269,071 |
In thousands | May 3, 2020 | May 5, 2019 | ||||||
U.S. | $ | 2,117,469 | $ | 2,136,000 | ||||
International | 151,602 | 166,719 | ||||||
Total | $ | 2,269,071 | $ | 2,302,719 |
In thousands | May 3, 2020 | May 5, 2019 | In thousands | May 2, 2021 | May 3, 2020 | ||||||||||||||
Contracts designated as cash flow hedges | $ | 11,600 | $ | 10,800 | Contracts designated as cash flow hedges | $ | 18,000 | $ | 11,600 | ||||||||||
Contracts not designated as cash flow hedges | $ | — | $ | — |
In thousands | May 3, 2020 | May 5, 2019 | ||||||
Net gain recognized in OCI | $ | 745 | $ | 278 |
May 3, 2020 | May 5, 2019 | |||||||||||||||
In thousands | 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 | $ | 820,943 | $ | 365,615 | $ | 796,801 | $ | 370,199 | ||||||||
Gain (loss) recognized in income | ||||||||||||||||
Derivatives designated as cash flow hedges | $ | 50 | $ | — | $ | 108 | $ | — | ||||||||
Derivatives not designated as hedging instruments | $ | — | $ | 2 | $ | — | $ | (6 | ) |
In thousands | May 3, 2020 | May 5, 2019 | ||||||
Derivatives designated as cash flow hedges: | ||||||||
Other current assets | $ | 698 | $ | 475 |
In thousands | Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
Balance at January 31, 2021 | $ | (6,398) | $ | (719) | $ | (7,117) | |||||||||||
Foreign currency translation adjustments | 3,700 | — | 3,700 | ||||||||||||||
Change in fair value of derivative financial instruments | — | (665) | (665) | ||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | 153 | 153 | ||||||||||||||
Other comprehensive income (loss) | 3,700 | (512) | 3,188 | ||||||||||||||
Balance at May 2, 2021 | $ | (2,698) | $ | (1,231) | $ | (3,929) | |||||||||||
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) | |||||||||||
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) 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 | ) | ||||
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) 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 | ) |
Thirteen Weeks Ended | ||||||||
Comparable brand revenue growth (decline) | May 3, 2020 | May 5, 2019 | ||||||
Pottery Barn | (1.1 | %) | 1.5 | % | ||||
West Elm | 3.3 | % | 11.8 | % | ||||
Williams Sonoma | 5.4 | % | (1.6 | %) | ||||
Pottery Barn Kids and Teen | 8.5 | % | 1.2 | % | ||||
Total 1 | 2.6 | % | 3.5 | % |
Thirteen Weeks Ended | ||||||||||||||
Comparable brand revenue growth (decline) | May 2, 2021 | May 3, 2020 | ||||||||||||
Pottery Barn | 41.3 | % | (1.1 | %) | ||||||||||
West Elm | 50.9 | % | 3.3 | % | ||||||||||
Williams Sonoma | 35.3 | % | 5.4 | % | ||||||||||
Pottery Barn Kids and Teen | 27.6 | % | 8.5 | % | ||||||||||
Total 1 | 40.4 | % | 2.6 | % |
Store Count 1 | Average Leased Square Footage Per Store | ||||||||||||||||||||||||||||||||||||||||
January 31, 2021 | Openings | Closings | May 2, 2021 | May 3, 2020 | May 2, 2021 | May 3, 2020 | |||||||||||||||||||||||||||||||||||
Williams Sonoma | 198 | — | (3) | 195 | 212 | 6,800 | 6,900 | ||||||||||||||||||||||||||||||||||
Pottery Barn | 195 | 2 | (2) | 195 | 201 | 14,600 | 14,400 | ||||||||||||||||||||||||||||||||||
West Elm | 121 | — | — | 121 | 119 | 13,100 | 13,200 | ||||||||||||||||||||||||||||||||||
Pottery Barn Kids | 57 | — | — | 57 | 74 | 7,800 | 7,700 | ||||||||||||||||||||||||||||||||||
Rejuvenation | 10 | — | — | 10 | 10 | 8,500 | 8,500 | ||||||||||||||||||||||||||||||||||
Total | 581 | 2 | (5) | 578 | 616 | 10,900 | 10,700 | ||||||||||||||||||||||||||||||||||
Store selling square footage at period-end | 3,972,000 | 4,148,000 | |||||||||||||||||||||||||||||||||||||||
Store leased square footage at period-end | 6,289,000 | 6,580,000 |
Store Count | Average Leased Square Footage Per Store | |||||||||||||||||||||||||||
February 2, 2020 | Openings | Closings | May 3, 2020 1 | May 5, 2019 | May 3, 2020 | May 5, 2019 | ||||||||||||||||||||||
Williams Sonoma | 211 | 1 | — | 212 | 219 | 6,900 | 6,800 | |||||||||||||||||||||
Pottery Barn | 201 | — | — | 201 | 205 | 14,400 | 14,100 | |||||||||||||||||||||
West Elm | 118 | 2 | (1 | ) | 119 | 113 | 13,200 | 13,100 | ||||||||||||||||||||
Pottery Barn Kids | 74 | — | — | 74 | 78 | 7,700 | 7,500 | |||||||||||||||||||||
Rejuvenation | 10 | — | — | 10 | 10 | 8,500 | 8,500 | |||||||||||||||||||||
Total | 614 | 3 | (1 | ) | 616 | 625 | 10,700 | 10,500 | ||||||||||||||||||||
Store selling square footage at period-end | 4,148,000 | 4,094,000 | ||||||||||||||||||||||||||
Store leased square footage at period-end | 6,580,000 | 6,549,000 |
Thirteen Weeks Ended | Thirteen Weeks Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In thousands | May 3, 2020 | % Net Revenues | May 5, 2019 | % Net Revenues | In thousands | May 2, 2021 | % Net Revenues | May 3, 2020 | % Net Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of goods sold 1 | $ | 820,943 | 66.5 | % | $ | 796,801 | 64.2 | % | Cost of goods sold 1 | $ | 996,176 | 57.0 | % | $ | 820,943 | 66.5 | % |
Thirteen Weeks Ended | ||||||||||||||||
In thousands | May 3, 2020 | % Net Revenues | May 5, 2019 | % Net Revenues | ||||||||||||
Selling, general and administrative expenses | $ | 365,615 | 29.6 | % | $ | 370,199 | 29.8 | % |
Thirteen Weeks Ended | |||||||||||||||||||||||||||||||||||||||||||||||
In thousands | May 2, 2021 | % Net Revenues | May 3, 2020 | % Net Revenues | |||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 477,676 | 27.3 | % | $ | 365,615 | 29.6 | % |
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 | |||||||||||||||||||
February 1, 2021 – February 28, 2021 | 85,932 | $ | 127.37 | 85,932 | $ | 414,036,000 | |||||||||||||||||
March 1, 2021 – March 28, 2021 | 361,807 | $ | 167.29 | 361,807 | $ | 947,889,000 | |||||||||||||||||
March 29, 2021 – May 2, 2021 | 1,342,986 | $ | 181.73 | 1,342,986 | $ | 703,833,000 | |||||||||||||||||
Total | 1,790,725 | $ | 176.20 | 1,790,725 | $ | 703,833,000 |
Exhibit Number | Exhibit Description | ||||||||||
10.1+* | |||||||||||
31.1* | |||||||||||
31.2* | |||||||||||
32.1* | |||||||||||
32.2* | |||||||||||
101* | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended May | ||||||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted under Exhibit 101). |
+ | Indicates a management contract or compensatory plan or arrangement. | ||||
* | Filed |
WILLIAMS-SONOMA, INC. | ||||||||
By: | /s/ Julie Whalen | |||||||
Julie Whalen | ||||||||
Duly Authorized Officer and Chief Financial Officer |