☒ | 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 | |||||||||||||
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 | |||||||||||||||||||||||
In thousands, except per share amounts | May 2, 2021 | May 3, 2020 | |||||||||||||||||||||
Net revenues | $ | 1,749,029 | $ | 1,235,203 | |||||||||||||||||||
Cost of goods sold | 996,176 | 820,943 | |||||||||||||||||||||
Gross profit | 752,853 | 414,260 | |||||||||||||||||||||
Selling, general and administrative expenses | 477,676 | 365,615 | |||||||||||||||||||||
Operating income | 275,177 | 48,645 | |||||||||||||||||||||
Interest expense, net | 1,872 | 2,159 | |||||||||||||||||||||
Earnings before income taxes | 273,305 | 46,486 | |||||||||||||||||||||
Income taxes | 45,503 | 11,063 | |||||||||||||||||||||
Net earnings | $ | 227,802 | $ | 35,423 | |||||||||||||||||||
Basic earnings per share | $ | 3.01 | $ | 0.46 | |||||||||||||||||||
Diluted earnings per share | $ | 2.90 | $ | 0.45 | |||||||||||||||||||
Shares used in calculation of earnings per share: | |||||||||||||||||||||||
Basic | 75,800 | 77,262 | |||||||||||||||||||||
Diluted | 78,485 | 78,399 |
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 | |||||||||||||||||||||||
In thousands | May 2, 2021 | May 3, 2020 | |||||||||||||||||||||
Net earnings | $ | 227,802 | $ | 35,423 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | 3,700 | (5,276) | |||||||||||||||||||||
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 | 153 | (37) | |||||||||||||||||||||
Comprehensive income | $ | 230,990 | $ | 30,659 |
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 | 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 |
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 January 31, 2021 | 76,340 | $ | 764 | $ | 638,375 | $ | 1,019,762 | $ | (7,117) | $ | (599) | $ | 1,651,185 | ||||||||||||||||||||||||||||
Net earnings | — | — | — | 227,802 | — | — | 227,802 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 3,700 | — | 3,700 | ||||||||||||||||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (665) | — | (665) | ||||||||||||||||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | 153 | — | 153 | ||||||||||||||||||||||||||||||||||
Conversion/release of stock-based awards 1 | 686 | 7 | (97,958) | — | — | (500) | (98,451) | ||||||||||||||||||||||||||||||||||
Repurchases of common stock | (1,791) | (18) | (9,239) | (306,272) | — | — | (315,529) | ||||||||||||||||||||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (344) | (44) | — | 388 | 0 | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 25,471 | — | — | — | 25,471 | ||||||||||||||||||||||||||||||||||
Dividends declared | — | — | — | (46,370) | — | — | (46,370) | ||||||||||||||||||||||||||||||||||
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) 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 |
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 | ||||||||||||||||||||||||||||
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 | |||||||
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 | |||||||||||||
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 January 31, 2021 | |||||||
Granted | 359,230 | ||||||
Granted, with vesting subject to performance conditions | 107,075 | ||||||
Released 1 | (1,029,356) | ||||||
Cancelled | (29,652) | ||||||
Balance at | 2,526,181 | ||||||
Vested plus expected to vest at | 2,309,979 |
In thousands, except per share amounts | Net Earnings | Weighted Average Shares | Earnings Per Share | ||||||||||||||
Thirteen weeks ended May 2, 2021 | |||||||||||||||||
Basic | $ | 227,802 | 75,800 | $ | 3.01 | ||||||||||||
Effect of dilutive stock-based awards | 2,685 | ||||||||||||||||
Diluted | $ | 227,802 | 78,485 | $ | 2.90 | ||||||||||||
Thirteen weeks ended May 3, 2020 | |||||||||||||||||
Basic | $ | 35,423 | 77,262 | $ | 0.46 | ||||||||||||
Effect of dilutive stock-based awards | 1,137 | ||||||||||||||||
Diluted | $ | 35,423 | 78,399 | $ | 0.45 | ||||||||||||
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 | Thirteen Weeks Ended | |||||||||||||||||||||||||||||||||||||
In thousands | August 2, 2020 | August 4, 2019 | August 2, 2020 | August 4, 2019 | In thousands | May 2, 2021 | May 3, 2020 | ||||||||||||||||||||||||||||||||
Pottery Barn | $ | 563,276 | $ | 524,847 | $ | 1,042,891 | $ | 1,016,973 | Pottery Barn | $ | 679,055 | $ | 479,615 | ||||||||||||||||||||||||||
West Elm | 380,552 | 357,574 | 695,982 | 667,057 | West Elm | 477,317 | 315,430 | ||||||||||||||||||||||||||||||||
Williams Sonoma | 243,133 | 191,374 | 442,435 | 386,267 | Williams Sonoma | 265,607 | 199,302 | ||||||||||||||||||||||||||||||||
Pottery Barn Kids and Teen | 235,987 | 227,853 | 424,539 | 404,899 | Pottery Barn Kids and Teen | 236,067 | 188,552 | ||||||||||||||||||||||||||||||||
Other 1 | 67,829 | 69,166 | 120,133 | 136,750 | Other 1 | 90,983 | 52,304 | ||||||||||||||||||||||||||||||||
Total 2 | $ | 1,490,777 | $ | 1,370,814 | $ | 2,725,980 | $ | 2,611,946 | Total 2 | $ | 1,749,029 | $ | 1,235,203 |
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 | 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 | May 2, 2021 | May 3, 2020 | |||||||||
Contracts designated as cash flow hedges | $ | 18,000 | $ | 11,600 |
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 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 2, 2020 | August 4, 2019 | ||||||
Derivatives designated as cash flow hedges: | ||||||||
Other current assets | $ | 150 | $ | 142 | ||||
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) 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 |
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 | ) |
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 | % |
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 |
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 | 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 |
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 |
Thirteen Weeks Ended | |||||||||||||||||||||||||||||||||||||||||||||||
In thousands | May 2, 2021 | % Net Revenues | May 3, 2020 | % Net Revenues | |||||||||||||||||||||||||||||||||||||||||||
Cost of goods sold 1 | $ | 996,176 | 57.0 | % | $ | 820,943 | 66.5 | % |
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 | ||||||||||||||||||||||||
Cost of goods sold 1 | $ | 939,575 | 63.0 | % | $ | 886,953 | 64.7 | % | $ | 1,760,518 | 64.6 | % | $ | 1,683,754 | 64.5 | % |
Thirteen Weeks Ended | Twenty-six Weeks Ended | Thirteen Weeks Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In thousands | August 2, 2020 | % Net Revenues | August 4, 2019 | % Net Revenues | August 2, 2020 | % Net Revenues | August 4, 2019 | % Net Revenues | In thousands | May 2, 2021 | % Net Revenues | May 3, 2020 | % Net Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 365,841 | 24.5 | % | $ | 397,696 | 29.0 | % | $ | 731,456 | 26.8 | % | $ | 767,895 | 29.4 | % | 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+* |
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: June 9, 2021 |