Cover Page
Cover Page - shares | 6 Months Ended | |
Aug. 04, 2019 | Sep. 01, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Aug. 4, 2019 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000719955 | |
Current Fiscal Year End Date | --02-02 | |
Entity Registrant Name | WILLIAMS SONOMA INC | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | WSM | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 78,022,213 | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-14077 | |
Entity Tax Identification Number | 94-2203880 | |
Entity Address, Address Line One | 3250 Van Ness Avenue | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94109 | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common Stock | |
City Area Code | 415 | |
Local Phone Number | 421-7900 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | ||
Net revenues | [1] | $ 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 | |
[1] | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $87.7 million and $80.7 million for the thirteen weeks ended August 4, 2019 and July 29, 2018, respectively, and approximately $174.3 million and $160.1 million for the twenty-six weeks ended August 4, 2019 and July 29, 2018, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 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 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Change in fair value of derivative financial instruments, tax | $ (8) | $ 333 | $ 66 | $ 401 |
Reclassification adjustment for realized losses on derivative financial instruments, tax | $ 10 | $ (21) | $ 34 | $ (24) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 | Jul. 29, 2018 |
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 |
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 par value; 7,500 shares authorized; none issued | |||
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 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Aug. 04, 2019 | Feb. 03, 2019 | Jul. 29, 2018 |
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 7,500,000 | 7,500,000 | 7,500,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 253,125,000 | 253,125,000 | 253,125,000 |
Common stock, shares issued | 78,203,000 | 78,813,000 | 80,988,000 |
Common stock, shares outstanding | 78,203,000 | 78,813,000 | 80,988,000 |
Treasury stock, shares | 14,000 | 2,000 | 2,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |
Beginning Balance (in shares) at Jan. 28, 2018 | 83,726,000 | ||||||
Beginning Balance at Jan. 28, 2018 | $ 1,203,566 | $ 837 | $ 562,814 | $ 647,422 | $ (6,782) | $ (725) | |
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, shares | [1] | 228,000 | |||||
Conversion/release of stock-based awards, value | [1] | (7,436) | $ 3 | (7,213) | (226) | ||
Repurchases of common stock, shares | (732,000) | ||||||
Repurchases of common stock, value | (37,713) | $ (7) | (3,437) | (34,269) | |||
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 | ||||
Ending Balance (in shares) at Apr. 29, 2018 | 83,222,000 | ||||||
Ending Balance at Apr. 29, 2018 | 1,197,234 | $ 833 | 564,685 | 638,774 | (6,755) | (303) | |
Beginning Balance (in shares) at Jan. 28, 2018 | 83,726,000 | ||||||
Beginning Balance at Jan. 28, 2018 | 1,203,566 | $ 837 | 562,814 | 647,422 | (6,782) | (725) | |
Net earnings | 96,881 | ||||||
Foreign currency translation adjustments | (4,138) | ||||||
Change in fair value of derivative financial instruments, net of tax | 1,129 | ||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | 49 | ||||||
Ending Balance (in shares) at Jul. 29, 2018 | 80,988,000 | ||||||
Ending Balance at Jul. 29, 2018 | 1,080,988 | $ 810 | 561,810 | 528,368 | (9,742) | (258) | |
Beginning Balance (in shares) at Apr. 29, 2018 | 83,222,000 | ||||||
Beginning Balance at Apr. 29, 2018 | 1,197,234 | $ 833 | 564,685 | 638,774 | (6,755) | (303) | |
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, shares | [1] | 175,000 | |||||
Conversion/release of stock-based awards, value | [1] | (4,899) | $ 2 | (4,869) | (32) | ||
Repurchases of common stock, shares | (2,409,000) | ||||||
Repurchases of common stock, value | (137,105) | $ (25) | (11,431) | (125,649) | |||
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) | |||||
Ending Balance (in shares) at Jul. 29, 2018 | 80,988,000 | ||||||
Ending Balance at Jul. 29, 2018 | 1,080,988 | $ 810 | 561,810 | 528,368 | (9,742) | (258) | |
Beginning Balance (in shares) at Feb. 03, 2019 | 78,813,000 | ||||||
Beginning Balance at Feb. 03, 2019 | 1,155,714 | $ 789 | 581,900 | 584,333 | (11,073) | (235) | |
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, shares | [1] | 571,000 | |||||
Conversion/release of stock-based awards, value | [1] | (25,406) | $ 5 | (25,298) | (113) | ||
Repurchases of common stock, shares | (576,000) | ||||||
Repurchases of common stock, value | (33,848) | $ (6) | (2,874) | (30,010) | (958) | ||
Reissuance of treasury stock under stock-based compensation plans | (332) | 332 | |||||
Stock-based compensation expense | 18,376 | 18,376 | |||||
Dividends declared | (39,549) | (39,549) | |||||
Adoption of accounting pronouncements | [3] | (3,303) | (3,303) | ||||
Ending Balance (in shares) at May. 05, 2019 | 78,808,000 | ||||||
Ending Balance at May. 05, 2019 | 1,121,768 | $ 788 | 571,772 | 564,127 | (13,945) | (974) | |
Beginning Balance (in shares) at Feb. 03, 2019 | 78,813,000 | ||||||
Beginning Balance at Feb. 03, 2019 | 1,155,714 | $ 789 | 581,900 | 584,333 | (11,073) | (235) | |
Net earnings | 115,304 | ||||||
Foreign currency translation adjustments | (4,260) | ||||||
Change in fair value of derivative financial instruments, net of tax | 72 | ||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (227) | ||||||
Ending Balance (in shares) at Aug. 04, 2019 | 78,203,000 | ||||||
Ending Balance at Aug. 04, 2019 | 1,121,603 | $ 783 | 584,828 | 552,454 | (15,488) | (974) | |
Beginning Balance (in shares) at May. 05, 2019 | 78,808,000 | ||||||
Beginning Balance at May. 05, 2019 | 1,121,768 | $ 788 | 571,772 | 564,127 | (13,945) | (974) | |
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, shares | [1] | 31,000 | |||||
Conversion/release of stock-based awards, value | [1] | (481) | $ 1 | (482) | |||
Repurchases of common stock, shares | (636,000) | ||||||
Repurchases of common stock, value | (38,283) | $ (6) | (3,170) | (35,107) | |||
Stock-based compensation expense | 16,708 | 16,708 | |||||
Dividends declared | (39,214) | (39,214) | |||||
Ending Balance (in shares) at Aug. 04, 2019 | 78,203,000 | ||||||
Ending Balance at Aug. 04, 2019 | $ 1,121,603 | $ 783 | $ 584,828 | $ 552,454 | $ (15,488) | $ (974) | |
[1] | Amounts are shown net of shares withheld for employee taxes. | ||||||
[2] | Primarily relates to our adoption of ASU 2014-09, Revenue from Contracts with Customers, in fiscal 2018. | ||||||
[3] | Relates to our adoption of ASU 2016-02, Leases, in fiscal 2019. See Note A. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2019 | Jul. 29, 2018 | |
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 |
FINANCIAL STATEMENTS - BASIS OF
FINANCIAL STATEMENTS - BASIS OF PRESENTATION | 6 Months Ended |
Aug. 04, 2019 | |
FINANCIAL STATEMENTS - BASIS OF PRESENTATION | NOTE A. FINANCIAL STATEMENTS - BASIS OF PRESENTATION These financial statements include Williams-Sonoma, Inc. and its wholly owned subsidiaries (“we,” “us” or “our”). The Condensed Consolidated Balance Sheets as of August 4, 2019 and July 29, 2018, the Condensed Consolidated Statements of Earnings, the Condensed Consolidated Statements of Comprehensive Income, and the Condensed Consolidated Statements of Stockholders’ Equity for the thirteen weeks and twenty-six twenty-six 10-K The results of operations for the thirteen and twenty-six Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. These financial statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases right-of-use right-of-use non-lease right-of-use In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815), non-financial In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. internal-use 350-40 |
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS | 6 Months Ended |
Aug. 04, 2019 | |
BORROWING ARRANGEMENTS | NOTE B. BORROWING ARRANGEMENTS Credit Facility We have a credit facility, which provides for a $500,000,000 unsecured revolving line of credit (the “revolver”) and a $300,000,000 unsecured term loan facility (the “term loan”). The revolver may be used to borrow revolving loans or request the issuance of letters of credit. We may, upon notice to the administrative agent, request existing or new lenders to increase the revolver by up to $250,000,000, at such lenders’ option, to provide for a total of $750,000,000 of unsecured revolving credit. The revolver matures on January 8, 2023, at which time all outstanding borrowings must be repaid and all outstanding letters of credit must be cash collateralized. We may, prior to January 8, 2020, elect to extend the maturity date for an additional year, subject to lender approval. During the second quarter and for year-to-date fiscal 2019, we had borrowings of $ 60,000,000 As of August 4, 2019, we had $300,000,000 3.57 The interest rates under the credit facility are variable, and may be elected by us as: (i) the London Interbank Offer Rate plus an applicable margin based on our leverage ratio ranging from 0.91% to 1.775% for a revolver borrowing, and 1.0% to 2.0% for the term loan; or (ii) a base rate as defined in the credit facility plus an applicable margin ranging from 0% to 0.775% for a revolver borrowing, and 0% to 1.0% for the term loan. As of August 4, 2019, we were in compliance with our financial covenants under the credit facility and, based on current projections, we expect to remain in compliance throughout the next 12 months. Letter of Credit Facilities We have three unsecured letter of credit reimbursement facilities for a total of $70,000,000. The letter of credit facilities contain covenants that are consistent with our credit facility. Interest on unreimbursed amounts under the letter of credit facilities accrues at a base rate as defined in the credit facility plus an applicable margin based on our leverage ratio. As of August 4, 2019, an aggregate of $7,356,000 was outstanding under the letter of credit facilities, which represents only a future commitment to fund inventory purchases to which we have not taken legal title. August 23, 2020. The latest expiration possible for any future letters of credit issued under the facilities is January 20, 2021. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Aug. 04, 2019 | |
STOCK-BASED COMPENSATION | NOTE C. STOCK-BASED COMPENSATION Equity Award Programs Our Amended and Restated 2001 Long-Term Incentive Plan (the “Plan”) provides for grants of incentive stock options, nonqualified stock options, stock-settled stock appreciation rights (collectively, “option awards”), restricted stock awards, restricted stock units (including those that are performance-based), deferred stock awards (collectively, “stock awards”) and dividend equivalents up to an aggregate of 36,570,000 shares. As of August 4, 2019, there were approximately 5,345,000 shares available for future grant. Awards may be granted under the Plan to our officers, employees and non-employee Option Awards Annual grants of option awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven years. than 100% of the closing price of our stock on the day prior to the grant date. Option awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain event. Stock Awards Annual grants of stock awards are limited to 1,000,000 shares on a per person basis. Stock awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain performance-based awards, which have variable payout conditions based on predetermined financial targets, generally vest three years from the date of grant. Certain stock awards and other agreements contain vesting acceleration clauses which are triggered upon certain events including, but not limited to, retirement, or a merger or similar corporate event. Stock awards granted to non-employee Non-employee non-employee Stock-Based Compensation Expense During the thirteen and twenty-six twenty-six 13,637,000 26,526,000 Restricted Stock Units The following table summarizes our restricted stock unit activity during the twenty-six Shares Balance at February 3, 2019 3,012,923 Granted 1,000,469 Granted, with vesting subject to performance conditions 238,786 Released 1 (954,327 ) Cancelled (299,687 ) Balance at August 4, 2019 2,998,164 Vested plus expected to vest at August 4, 2019 3,158,678 1 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Aug. 04, 2019 | |
EARNINGS PER SHARE | NOTE D. EARNINGS PER SHARE Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding and common stock equivalents outstanding for the period. Common stock equivalents consist of shares subject to stock-based awards with exercise prices less than or equal to the average market price of our common stock for the period, to the extent their inclusion would be dilutive. The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: 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 Basic $ 115,304 78,586 $ 1.47 Effect of dilutive stock-based awards 1,047 Diluted $ 115,304 79,633 $ 1.45 Twenty-six Basic $ 96,881 82,867 $ 1.17 Effect of dilutive stock-based awards 652 Diluted $ 96,881 83,519 $ 1.16 Stock-based awards of 5,259 and 16,813 were excluded from the computation of diluted earnings per share for the thirteen and twenty-six twenty-six |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Aug. 04, 2019 | |
SEGMENT REPORTING | NOTE E. SEGMENT REPORTING We identify our operating segments according to how our business activities are managed and evaluated. Prior to fiscal 2019, we managed e-commerce merchandise strategies, which included the results of Williams Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, Pottery Barn Teen, Williams Sonoma Home, Rejuvenation and Mark and Graham, separately from our retail business. Because these merchandising strategies shared similar economic and other qualitative characteristics, they had been aggregated into the e-commerce reportable segment. Also, prior to fiscal 2019, we managed retail merchandise strategies, which included the results of our retail stores for Williams Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Rejuvenation, separately from our e-commerce business. Because these merchandising strategies shared similar economic and other qualitative characteristics, they had been aggregated into the retail reportable segment. Beginning in fiscal 2019, due to the convergence of our e-commerce e-commerce The following table summarizes our net revenues by brand for the thirteen and twenty-six Thirteen Twenty-six In thousands August 4, July 29, August 4, July 29, 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 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 $87.7 million and $80.7 million for the thirteen weeks ended August 4, 2019 and July 29, 2018, respectively, and approximately $ 174.3 twenty-six Long-lived assets by geographic location are as follows: 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 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Aug. 04, 2019 | |
COMMITMENTS AND CONTINGENCIES | NOTE F. COMMITMENTS AND CONTINGENCIES We are involved in lawsuits, claims and proceedings incident to the ordinary course of our business. These disputes, which are not currently material, are increasing in number as our business expands and our company grows. We review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. In view of the inherent difficulty of predicting the outcome of these matters, it may not be possible to determine whether any loss is probable or to reasonably estimate the amount of the loss until the case is close to resolution, in which case no reserve is established until that time. Any claims against us, whether meritorious or not, could result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits, claims and proceedings cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will not have a material adverse effect on our Condensed Consolidated Financial Statements taken as a whole. 9 |
STOCK REPURCHASE PROGRAM AND DI
STOCK REPURCHASE PROGRAM AND DIVIDENDS | 6 Months Ended |
Aug. 04, 2019 | |
STOCK REPURCHASE PROGRAM AND DIVIDENDS | NOTE G. STOCK REPURCHASE PROGRAM AND DIVIDENDS Stock Repurchase Program During the thirteen weeks ended August 4, 2019, we repurchased 635,526 shares of our common stock at an average cost of $60.24 per share for a total cost of approximately $ 38,283 twenty-six 72,131 974 During the thirteen weeks ended July 29, 2018, we repurchased shares of our common stock at an average cost of $ per share for a total cost of approximately $ 137,105,000 . During the twenty-six weeks ended July 29, 2018, we repurchased shares of our common stock at an average cost of $ per share for a total cost of approximately $ 174,818,000 . In addition, as of July 29, 2018, we held treasury stock of $ 258 that represents the cost of shares available for issuance that is intended to satisfy future stock-based award settlements in certain foreign jurisdictions. Stock repurchases under our program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. Dividends We declared cash dividends of $ 0.48 twenty-six |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Aug. 04, 2019 | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE H. DERIVATIVE FINANCIAL INSTRUMENTS We have businesses in Canada, Australia and the United Kingdom, and operations throughout Asia and Europe, which expose us to market risk associated with foreign currency exchange rate fluctuations. Substantially all of our purchases and sales are denominated in U.S. dollars, which limits our exposure to this risk. However, some of our foreign operations have a functional currency other than the U.S. dollar. To mitigate this risk, we hedge a portion of our foreign currency exposure with foreign currency forward contracts in accordance with our risk management policies. We do not enter into such contracts for speculative purposes. The assets or liabilities associated with these derivative financial instruments are measured at fair value and recorded in either other current or long-term assets or other current or long-term liabilities. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on whether the derivative financial instrument is designated as a hedge and qualifies for hedge accounting in accordance with Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging Cash Flow Hedges We enter into foreign currency forward contracts designated as cash flow hedges (to sell Canadian dollars and purchase U.S. dollars) for forecasted inventory purchases in U.S. dollars by our Canadian subsidiary. These hedges have terms of up to 18 months. All hedging relationships are formally documented, and the forward contracts are designed to mitigate foreign currency exchange risk on hedged transactions. We record the effective portion of changes in the fair value of our cash flow hedges in other comprehensive income (“OCI”) until the earlier of when the hedged forecasted inventory purchase occurs or the respective contract reaches maturity. Subsequently, as the inventory is sold to the customer, we reclassify amounts previously recorded in OCI to cost of goods sold. Changes in the fair value of the forward contract related to interest charges (or forward points) are excluded from the assessment and measurement of hedge effectiveness and are recorded in cost of goods sold. Based on the rates in effect as of August 4, 2019, we expect to reclassify a net pre-tax We also enter into non-designated 10 As of August 4, 2019 and July 29, 2018, we had foreign currency forward contracts outstanding (in U.S. dollars) with notional values as follows: 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 Hedge effectiveness is evaluated prospectively at inception, on an ongoing basis, as well as retrospectively using regression analysis. Any measurable ineffectiveness of the hedge is recorded in selling, general and administrative expenses. No gain or loss was recognized for cash flow hedges due to hedge ineffectiveness and all hedges were deemed effective for assessment purposes for the thirteen and twenty-six The effect of derivative instruments in our Condensed Consolidated Financial Statements during the thirteen and twenty-six weeks ended August 4, 2019 and July 29, 2018, pre-tax, was as follows: Thirteen Weeks Ended Twenty-six 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 sold Selling, general and administrative expenses Cost of goods Selling, general and administrative expenses Cost of goods Selling, general and administrative expenses Line items presented $ 886,953 $ 397,696 $ 811,232 $ 389,776 $ 1,683,754 $ 767,895 $ 1,582,068 $ 755,390 Gain (loss) Derivatives $ 187 $ — $ (21 ) $ 50 $ 295 $ — $ (73 ) $ 33 Derivatives not $ — $ 24 $ — $ 1,183 $ — $ 18 $ — $ 3,943 The fair values of our derivative financial instruments are presented below according to their classification in our Condensed Consolidated Balance Sheets. All fair values were measured using Level 2 inputs as defined by the fair value hierarchy described in Note I. 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 We record all derivative assets and liabilities on a gross basis. They do not meet the balance sheet netting criteria as discussed in ASC 210, Balance Sheet |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Aug. 04, 2019 | |
FAIR VALUE MEASUREMENTS | NOTE I. FAIR VALUE MEASUREMENTS Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We determine the fair value of financial and non-financial Fair Value Measurement • 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. The fair values of our cash and cash equivalents are based on Level 1 inputs, which include quoted prices in active markets for identical assets. Long-term Debt As of August 4, 2019, the fair value of our long-term debt approximates its carrying value and is based on observable Level 2 inputs, primarily market interest rates for instruments with similar maturities. Foreign Currency Derivatives and Hedging Instruments We use the income approach to value our derivatives using observable Level 2 market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the assets and liabilities, which include interest rates and credit risk ratings. We use mid-market The counterparties associated with our foreign currency forward contracts are large credit-worthy financial institutions, and the derivatives transacted with these entities are relatively short in duration, therefore, we do not consider counterparty concentration and non-performance Long-lived Assets We review the carrying value of all long-lived assets for impairment, primarily at an individual store level, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We measure property and equipment at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. We measure right-of-use There were no transfers between Level 1, 2 or 3 categories during the thirteen and twenty-six |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 6 Months Ended |
Aug. 04, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE J. ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: 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 ) |
ACQUISITION OF OUTWARD, INC.
ACQUISITION OF OUTWARD, INC. | 6 Months Ended |
Aug. 04, 2019 | |
ACQUISITION OF OUTWARD, INC | NOTE K. ACQUISITION OF OUTWARD, INC. On December 1, 2017, we acquired Outward, Inc., a 3-D four years pre-existing The purchase consideration has been allocated based on estimates of the fair value of identifiable assets acquired and liabilities assumed, as set forth in the table below. 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 Intangible assets acquired primarily represent 3-D four years Outward, Inc. is a wholly-owned subsidiary of Williams-Sonoma, Inc. Results of operations for Outward have been included in our Condensed Consolidated Financial Statements from the acquisition date. |
REVENUE
REVENUE | 6 Months Ended |
Aug. 04, 2019 | |
REVENUE | NOTE L. REVENUE The majority of our revenues are generated from sales of merchandise to our customers through our e-commerce co-branded We recognize revenue as control of promised goods or services are transferred to our customers. We record a liability at each period end where we have an obligation to transfer goods or services for which we have received consideration or have a right to consideration. We exclude from revenue any taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and are concurrent with revenue-generating activities. Our payment terms are primarily at the point of sale for merchandise sales and for most services. See Note E for a discussion of our net revenues by operating segment. Merchandise Sales Revenues from the sale of our merchandise through our e-commerce Revenue from the sale of merchandise is reported net of sales returns. We estimate future returns based on historical return trends together with current product sales performance. As of August 4, 2019 and July 29,2018, we recorded a liability for expected sales returns of approximately $28,778,000 and $ 30,432,000 11,036,000 Stored-value Cards We issue stored-value cards that may be redeemed on future merchandise purchases. Our stored-value cards have no expiration dates. Revenue from stored-value cards is recognized at a point in time upon redemption of the card and as control of the merchandise is transferred to the customer. Revenue from estimated unredeemed stored-value cards (“breakage ” ) is recognized in a manner consistent with our historical redemption patterns over the estimated period of redemption of our cards of approximately , the majority of which is recognized within one year of the card issuance. Breakage revenue is not material to our Condensed Consolidated Financial Statements. Credit Card Incentives We enter into agreements with credit card issuers in connection with our private label and co-branded Customer Loyalty Programs We have customer loyalty programs which allow members to earn points for each qualifying purchase. Points earned enable members to receive certificates that may be redeemed on future merchandise purchases. This customer option is a material right and, accordingly, represents a separate performance obligation to the customer. The allocated consideration for the points earned by our loyalty program members is deferred based on the standalone selling price of the points and recorded within gift card and other deferred revenue within our Condensed Consolidated Balance Sheet. The measurement of standalone selling prices takes into consideration the discount the customer would receive in a separate transaction for the delivered item, as well as our estimate of certificates expected to be redeemed, based on historical redemption patterns. This measurement is applied to our portfolio of performance obligations for points earned, as all obligations have similar economic characteristics. We believe the impact to our Condensed Consolidated Financial Statements would not be materially different if this measurement was applied to each individual performance obligation. Revenue is recognized for these performance obligations at a point in time when certificates are redeemed by the customer. These obligations relate to contracts with terms less than one year, as our certificates generally expire within 6 months from issuance. Deferred Revenue We defer revenue when cash payments are received in advance of satisfying performance obligations, primarily associated with our stored-value cards, merchandise sales, and incentives received from credit card issuers. As of August 4, 2019, we held $288,564,000 in gift card and other deferred revenue on our Condensed Consolidated Balance Sheet, substantially all of which will be recognized as revenue within the next 12 months. |
LEASES
LEASES | 6 Months Ended |
Aug. 04, 2019 | |
Leases [Abstract] | |
LEASES | NOTE M. LEASES We lease store locations, distribution and manufacturing facilities, corporate facilities, customer care centers and certain equipment for our U.S. and foreign operations with initial terms generally ranging from 2 to 22 years. We determine whether an arrangement is or contains a lease at inception by evaluating whether an identified asset exists that we control over the term of the arrangement. Lease commencement is determined to be when the lessor provides us access to, and the right to control, the identified asset. The rental payments for our store leases are typically structured as either: minimum rent; minimum rate with stated increases or increases based on a future index; rent based on a percentage of store sales; or rent based on a percentage of store sales if a specified store sales threshold or contractual obligation of the landlord has not been met. We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities. Our variable lease payments include: rent payments that are based on a percentage of sales; contingent payments until the resolution of the contingency is reasonably certain; and rent increases based on a future index. Upon lease commencement, we recognize the lease liability measured at the present value of the fixed future minimum lease payments. We have elected the practical expedient to not separate lease and non-lease right-of-use right-of-use Many of our leases contain renewal options and early termination options. The option periods are generally not included in the lease term used to measure our lease liabilities and right-of-use right-of-use Discount Rate Our leases do not provide information about the rate implicit in the lease. Therefore, we utilized an incremental borrowing rate to calculate the present value of our future lease obligations. The incremental borrowing rate represents the rate of interest we would have to pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment. The components of lease costs for the thirteen and twenty-six 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 Sublease income and short-term lease costs were not material to us for the thirteen and twenty-six Supplemental cash flow information related to our leases for the thirteen and twenty-six 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 63,871 82,393 Weighted average remaining operating lease term and incremental borrowing rate as of August 4, 2019 are as follows: Weighted average remaining lease term (years) 7.55 Weighted average incremental borrowing rate 3.86 % As of August 4, 2019, the future minimum lease payments under our operating lease liabilities are as follows: 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 $ 1,148,031 As previously disclosed in our 2018 Annual Report on Form 10-K non-cancellable 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 Memphis-Based Distribution Facility In fiscal 2015, we entered into an agreement with a partnership comprised of the estate of W. Howard Lester, our former Chairman of the Board and Chief Executive Officer, and the estate of James A. McMahan, a former Director Emeritus and significant stockholder and two unrelated parties to lease a distribution facility in Memphis, Tennessee through July 2017. In fiscal 2017, we exercised the first of two one-year one-year twenty-six |
FINANCIAL STATEMENTS - BASIS _2
FINANCIAL STATEMENTS - BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Aug. 04, 2019 | |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases right-of-use right-of-use non-lease right-of-use In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815), non-financial In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. internal-use 350-40 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Summary of Restricted Stock Units Activity | The following table summarizes our restricted stock unit activity during the twenty-six Shares Balance at February 3, 2019 3,012,923 Granted 1,000,469 Granted, with vesting subject to performance conditions 238,786 Released 1 (954,327 ) Cancelled (299,687 ) Balance at August 4, 2019 2,998,164 Vested plus expected to vest at August 4, 2019 3,158,678 1 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Reconciliation of Net Earnings and Number of Shares Used In Basic and Diluted Earnings per Share Computations | The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: 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 Basic $ 115,304 78,586 $ 1.47 Effect of dilutive stock-based awards 1,047 Diluted $ 115,304 79,633 $ 1.45 Twenty-six Basic $ 96,881 82,867 $ 1.17 Effect of dilutive stock-based awards 652 Diluted $ 96,881 83,519 $ 1.16 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Segment Information | The following table summarizes our net revenues by brand for the thirteen and twenty-six Thirteen Twenty-six In thousands August 4, July 29, August 4, July 29, 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 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 $87.7 million and $80.7 million for the thirteen weeks ended August 4, 2019 and July 29, 2018, respectively, and approximately $ 174.3 twenty-six |
Summary of Long-lived Assets by Geographic Areas | Long-lived assets by geographic location are as follows: 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 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Foreign Currency Forward Contracts Outstanding with Notional Values | As of August 4, 2019 and July 29, 2018, we had foreign currency forward contracts outstanding (in U.S. dollars) with notional values as follows: 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 |
Effect of Derivative Instruments in Consolidated Financial Statements | The effect of derivative instruments in our Condensed Consolidated Financial Statements during the thirteen and twenty-six weeks ended August 4, 2019 and July 29, 2018, pre-tax, was as follows: Thirteen Weeks Ended Twenty-six 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 sold Selling, general and administrative expenses Cost of goods Selling, general and administrative expenses Cost of goods Selling, general and administrative expenses Line items presented $ 886,953 $ 397,696 $ 811,232 $ 389,776 $ 1,683,754 $ 767,895 $ 1,582,068 $ 755,390 Gain (loss) Derivatives $ 187 $ — $ (21 ) $ 50 $ 295 $ — $ (73 ) $ 33 Derivatives not $ — $ 24 $ — $ 1,183 $ — $ 18 $ — $ 3,943 |
Fair Values of Derivative Instruments | The fair values of our derivative financial instruments are presented below according to their classification in our Condensed Consolidated Balance Sheets. All fair values were measured using Level 2 inputs as defined by the fair value hierarchy described in Note I. 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 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax | Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: 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 ) |
ACQUISITION OF OUTWARD, INC. (T
ACQUISITION OF OUTWARD, INC. (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Summary of Fair Value of Identifiable Assets Acquired and Liabilities Asssumed | The purchase consideration has been allocated based on estimates of the fair value of identifiable assets acquired and liabilities assumed, as set forth in the table below. 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 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Leases [Abstract] | |
Schedule of components of leases costs | The components of lease costs for the thirteen and twenty-six 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 |
Schedule of supplemental cash flow information related to our leases | Supplemental cash flow information related to our leases for the thirteen and twenty-six 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 63,871 82,393 |
Schedule of weighted average remaining operating lease term | Weighted average remaining operating lease term and incremental borrowing rate as of August 4, 2019 are as follows: Weighted average remaining lease term (years) 7.55 Weighted average incremental borrowing rate 3.86 % |
Schedule of future minimum lease payments | As of August 4, 2019, the future minimum lease payments under our operating lease liabilities are as follows: 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 $ 1,148,031 As previously disclosed in our 2018 Annual Report on Form 10-K non-cancellable 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 |
Financial Statements - Basis _3
Financial Statements - Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
May 05, 2019 | [1] | Apr. 29, 2018 | [2] | Aug. 04, 2019 | Feb. 03, 2019 | Jul. 29, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Liabilities | $ 2,748,078 | $ 1,657,130 | $ 1,526,989 | ||||
Operating lease | 1,371,009 | ||||||
Deferred rent credit and lease incentives | 28,618 | $ 201,374 | $ 207,190 | ||||
Cumulative Effect on Retained Earnings, Net of Tax | $ (3,303) | $ 17,688 | |||||
Adjustments for New Accounting Pronouncement [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cumulative Effect on Retained Earnings, Net of Tax | 3,300 | ||||||
Accounting Standards Update 2016-02 [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Assets | 1,200,000 | ||||||
Liabilities | 1,200,000 | ||||||
Operating lease | 1,400,000 | ||||||
Deferred rent credit and lease incentives | $ 200,000 | ||||||
[1] | Relates to our adoption of ASU 2016-02, Leases, in fiscal 2019. See Note A. | ||||||
[2] | Primarily relates to our adoption of ASU 2014-09, Revenue from Contracts with Customers, in fiscal 2018. |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Detail) - USD ($) | Aug. 23, 2019 | Aug. 04, 2019 | Jul. 29, 2018 |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity under letter of credit facilities including additional borrowing capacity | $ 70,000,000 | ||
Outstanding letter of credit facilities | 7,356,000 | ||
Borrowings under revolving line of credit | 60,000,000 | ||
Line of credit | 60,000,000 | ||
Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity under letter of credit facilities including additional borrowing capacity | $ 70,000,000 | ||
Subsequent Event [Member] | Extended Maturity [Member] | |||
Debt Instrument [Line Items] | |||
Letter of credit facilities, maturity date | Aug. 23, 2020 | ||
Standby Letters of Credit | |||
Debt Instrument [Line Items] | |||
Amount issued but undrawn under credit facility | $ 12,400,000 | ||
Unsecured Revolving Line Of Credit | |||
Debt Instrument [Line Items] | |||
Letter of credit facilities, maturity date | Jan. 8, 2023 | ||
Current borrowing capacity | $ 500,000,000 | ||
Maximum borrowing capacity including additional borrowing capacity | $ 250,000,000 | ||
Interest rate description | The interest rates under the credit facility are variable, and may be elected by us as: (i) the London Interbank Offer Rate plus an applicable margin based on our leverage ratio ranging from 0.91% to 1.775% for a revolver borrowing, and 1.0% to 2.0% for the term loan; or (ii) a base rate as defined in the credit facility plus an applicable margin ranging from 0% to 0.775% for a revolver borrowing, and 0% to 1.0% for the term loan. | ||
Weighted average interest rate | 3.42% | ||
Borrowings under revolving line of credit | $ 60,000,000 | $ 0 | |
Line of credit | 60,000,000 | ||
Unsecured Revolving Line Of Credit | Maximum | |||
Debt Instrument [Line Items] | |||
Additional borrowing capacity | $ 750,000,000 | ||
Unsecured Revolving Line Of Credit | Margin Based On Leverage Ratio | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 1.775% | ||
Unsecured Revolving Line Of Credit | Margin Based On Leverage Ratio | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 0.91% | ||
Unsecured Revolving Line Of Credit | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 0.775% | ||
Unsecured Revolving Line Of Credit | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 0.00% | ||
Unsecured Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 300,000,000 | ||
Long term debt | $ 300,000,000 | ||
Debt instrument, maturity date | Jan. 8, 2021 | ||
Weighted average interest rate | 3.57% | ||
Unsecured Term Loan Facility | Margin Based On Leverage Ratio | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 2.00% | ||
Unsecured Term Loan Facility | Margin Based On Leverage Ratio | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 1.00% | ||
Unsecured Term Loan Facility | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 1.00% | ||
Unsecured Term Loan Facility | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 0.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum term of grants of option awards, years | 7 years | |||
Vesting period of awards granted to employees, years | 4 years | |||
Stock-based compensation expense | $ 35,401,000 | $ 26,526,000 | ||
Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 16,872,000 | $ 13,637,000 | $ 35,401,000 | $ 26,526,000 |
Minimum | Non-Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 1 year | |||
Equity Award Programs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares under the Plan | 36,570,000 | 36,570,000 | ||
Shares available for future grant | 5,345,000 | 5,345,000 | ||
Option Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards annual grant limit | 1,000,000 | |||
Option Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price as a percentage of closing price on the day prior to the grant date | 100.00% | |||
Service Based Option Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 4 years | |||
Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards annual grant limit | 1,000,000 | |||
Performance Based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards granted to employees, years | 3 years |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) | 6 Months Ended | |
Aug. 04, 2019shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance at February 3, 2019, shares | 3,012,923 | |
Granted, shares | 1,000,469 | |
Granted, with vesting subject to performance conditions, shares | 238,786 | |
Released, shares | (954,327) | [1] |
Cancelled, shares | (299,687) | |
Balance at August 4, 2019 | 2,998,164 | |
Vested plus expected to vest at August 4, 2019 | 3,158,678 | |
[1] | Excludes 105,436 incremental shares released due to achievement of performance conditions above target. |
Summary of Restricted Stock U_2
Summary of Restricted Stock Unit Activity (Parenthetical) (Detail) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended | |
Aug. 04, 2019shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incremental shares released due to achievement of performance conditions | 954,327 | [1] |
Achievement [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incremental shares released due to achievement of performance conditions | 105,436 | |
[1] | Excludes 105,436 incremental shares released due to achievement of performance conditions above target. |
Earnings Per Share- Additional
Earnings Per Share- Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards excluded from the computation of diluted earnings per share | 5,259 | 17,179 | 16,813 | 15,986 |
Reconciliation of Net Earnings
Reconciliation of Net Earnings and Number of Shares Used in Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Earnings Per Share [Line Items] | ||||
Net Earnings, Basic | $ 62,648 | $ 51,713 | $ 115,304 | $ 96,881 |
Net Earnings, Diluted | $ 62,648 | $ 51,713 | $ 115,304 | $ 96,881 |
Weighted Average Shares, Basic | 78,488 | 82,342 | 78,586 | 82,867 |
Weighted Average Shares, Effect of dilutive stock-based awards | 982 | 825 | 1,047 | 652 |
Weighted Average Shares, Diluted | 79,470 | 83,167 | 79,633 | 83,519 |
Earnings Per Share, Basic | $ 0.80 | $ 0.63 | $ 1.47 | $ 1.17 |
Earnings Per Share, Diluted | $ 0.79 | $ 0.62 | $ 1.45 | $ 1.16 |
Summary of Segment Reporting In
Summary of Segment Reporting Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Net revenues | [1] | $ 1,370,814 | $ 1,275,174 | $ 2,611,946 | $ 2,478,174 |
Pottery Bam [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 524,847 | 506,460 | 1,016,973 | 996,831 | |
West Elm [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 357,574 | 301,213 | 667,057 | 574,562 | |
Williams Sonoma [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 191,374 | 195,178 | 386,267 | 396,156 | |
Pottery Bam Kids and Teen [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 227,853 | 213,807 | 404,899 | 394,203 | |
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | [2] | $ 69,166 | $ 58,516 | $ 136,750 | $ 116,422 |
[1] | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $87.7 million and $80.7 million for the thirteen weeks ended August 4, 2019 and July 29, 2018, respectively, and approximately $174.3 million and $160.1 million for the twenty-six weeks ended August 4, 2019 and July 29, 2018, respectively. | ||||
[2] | Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and Graham. |
Summary of Segment Reporting _2
Summary of Segment Reporting Information by Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenues related to foreign operations | $ 87.7 | $ 80.7 | $ 174.3 | $ 160.1 |
Summary of Long-lived Assets by
Summary of Long-lived Assets by Geographic Areas (Detail) - USD ($) $ in Thousands | Aug. 04, 2019 | Jul. 29, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,311,662 | $ 1,130,485 |
US | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,146,995 | 1,077,547 |
Non-US [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 164,667 | $ 52,938 |
Stock Repurchase Program and _2
Stock Repurchase Program and Dividends - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | Feb. 03, 2019 | |
Stock Repurchase Program and Dividend [Line Items] | |||||
Common stock repurchased, shares | 635,526 | 2,409,437 | 1,228,622 | 3,141,367 | |
Common stock repurchased, average cost per share | $ 60.24 | $ 56.90 | $ 58.71 | $ 55.65 | |
Common stock repurchased, total cost | $ 38,283,000 | $ 137,105,000 | $ 72,131,000 | $ 174,818,000 | |
Stock repurchase program, remaining authorized repurchase amount | 651,685,000 | 651,685,000 | |||
Treasure stock, value | $ 974,000 | $ 258,000 | $ 974,000 | $ 258,000 | $ 235,000 |
Cash dividend, per common share | $ 0.48 | $ 0.43 | |||
Authorized cash dividend, per common share | $ 0.96 | $ 0.86 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) | Aug. 04, 2019USD ($) |
Derivative [Line Items] | |
Reclassification from OCI to cost of goods sold | $ 130,000 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts Outstanding with Notional Values (Detail) - Foreign Exchange Contract - Cash Flow Hedging - USD ($) $ in Thousands | Aug. 04, 2019 | Jul. 29, 2018 |
Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Exchange of foreign currency contracts | $ 6,000 | $ 20,800 |
Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Exchange of foreign currency contracts | $ 6,600 |
Effect of Derivative Instrument
Effect of Derivative Instruments in Condensed Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Derivative [Line Items] | ||||
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | $ 886,953 | $ 811,232 | $ 1,683,754 | $ 1,582,068 |
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | 397,696 | 389,776 | 767,895 | 755,390 |
Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | 886,953 | 811,232 | 1,683,754 | 1,582,068 |
Derivatives designated as cash flow hedges | 187 | (21) | 295 | (73) |
Selling, General and Administrative Expenses [Member] | ||||
Derivative [Line Items] | ||||
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | 397,696 | 389,776 | 767,895 | 755,390 |
Derivatives designated as cash flow hedges | 50 | 33 | ||
Derivatives not designated as hedging instruments | $ 24 | $ 1,183 | $ 18 | $ 3,943 |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Aug. 04, 2019 | Jul. 29, 2018 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Assets | $ 142 | $ 690 |
Derivatives not designated as hedging instruments, Assets | 5 | |
Other Long-Term Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Assets | $ 57 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Aug. 04, 2019 | May 05, 2019 | Jul. 29, 2018 | Apr. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | $ (11,073) | $ (11,073) | ||||
Foreign currency translation adjustments | $ (1,251) | (3,009) | $ (2,993) | $ (1,145) | (4,260) | $ (4,138) |
Change in fair value of derivative financial instruments | (132) | 204 | 6 | 1,123 | 72 | 1,129 |
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (160) | (67) | 49 | (227) | 49 | |
Ending Balance | (15,488) | (9,742) | (15,488) | (9,742) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (14,268) | (11,259) | (7,372) | (6,227) | (11,259) | (6,227) |
Foreign currency translation adjustments | (1,251) | (3,009) | (2,993) | (1,145) | ||
Other comprehensive income (loss) | (1,251) | (3,009) | (2,993) | (1,145) | ||
Ending Balance | (15,519) | (14,268) | (10,365) | (7,372) | (15,519) | (10,365) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | 323 | 186 | 617 | (555) | 186 | (555) |
Change in fair value of derivative financial instruments | (132) | 204 | 6 | 1,123 | ||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (160) | (67) | 49 | |||
Other comprehensive income (loss) | (292) | 137 | 6 | 1,172 | ||
Ending Balance | 31 | 323 | 623 | 617 | 31 | 623 |
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (13,945) | (11,073) | (6,755) | (6,782) | (11,073) | (6,782) |
Foreign currency translation adjustments | (1,251) | (3,009) | (2,993) | (1,145) | ||
Change in fair value of derivative financial instruments | (132) | 204 | 6 | 1,123 | ||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (160) | (67) | 49 | |||
Other comprehensive income (loss) | (1,543) | (2,872) | (2,987) | 27 | ||
Ending Balance | $ (15,488) | $ (13,945) | $ (9,742) | $ (6,755) | $ (15,488) | $ (9,742) |
Acquisition of Outward, Inc. -
Acquisition of Outward, Inc. - Additional Information (Detail) - Outward Inc. - USD ($) | Dec. 01, 2017 | Aug. 04, 2019 |
Business Acquisition [Line Items] | ||
Contractual purchase price | $ 112,000,000 | |
Purchase consideration | 80,812,000 | |
Consideration owed to former owners of an acquired business, contingent upon continued future service | $ 26,690,000 | |
Acquisition payment period | 4 years | |
Cash paid to settle pre-existing obligations as part of a business combination, excluded from consideration transferred | $ 4,498,000 | |
Consideration owed to certain key employees of an acquired business, contingent upon continued future service and certain financial targets | $ 20,000,000 | |
3-D Imaging Data and Intellectual Property | ||
Business Acquisition [Line Items] | ||
Finite lived intangible asset useful life | 4 years |
Summary of Fair Value of Identi
Summary of Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 | Jul. 29, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 85,348 | $ 85,382 | $ 85,673 |
Outward Inc. | |||
Business Acquisition [Line Items] | |||
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 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Aug. 04, 2019 | Feb. 03, 2019 | Jul. 29, 2018 | |
Customer loyalty program, expiration period | 6 months | ||
Gift card and other deferred revenue | $ 283,108,000 | $ 290,445,000 | $ 263,546,000 |
Other Current Liabilities | |||
Expected sales return liability | 28,778,000 | 30,432,000 | |
Other Current Assets | |||
Reduction in cost of goods sold for expected net realizable value of merchandise inventory to be returned | $ 10,685,000 | $ 11,036,000 | |
Stored-Value Cards | |||
Stored value card redemption period | 4 years | ||
Stored-Value Cards, Merchandise Sales and Credit Card Incentives | |||
Gift card and other deferred revenue | $ 288,564,000 |
Leases - Additional information
Leases - Additional information (Detail) - Machinery and Equipment [Member] | Aug. 04, 2019 |
Maximum [Member] | |
Lessee, Operating Lease, Term of Contract | 22 years |
Minimum [Member] | |
Lessee, Operating Lease, Term of Contract | 2 years |
Components of Leases Costs (Det
Components of Leases Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Aug. 04, 2019 | Aug. 04, 2019 | |
Operating lease costs | $ 66,143 | $ 131,111 |
Variable lease costs | 5,129 | 9,763 |
Total lease costs | $ 71,272 | $ 140,874 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related To Our Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Aug. 04, 2019 | Aug. 04, 2019 | |
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 |
Weighted Average Remaining Oper
Weighted Average Remaining Operating Lease Term And Incremental Borrowing Rate (Detail) | Aug. 04, 2019 |
Weighted average remaining lease term (years) | 7 years 6 months 18 days |
Weighted average incremental borrowing rate | 3.86% |
Future Minimum Lease Payments U
Future Minimum Lease Payments Under Our Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Remaining fiscal 2019 | $ 143,927 | |
Fiscal 2020 | 265,375 | $ 262,429 |
Fiscal 2021 | 233,052 | 225,755 |
Fiscal 2022 | 201,593 | 190,263 |
Fiscal 2023 | 170,283 | 160,308 |
Fiscal 2024 | 146,808 | |
Fiscal 2025 and thereafter | 441,650 | |
Total lease payments | 1,602,688 | $ 1,690,944 |
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 |
Future Minimum Lease Payments_2
Future Minimum Lease Payments Under Non-cancellable Operating Leases (Detail) - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Accounting For Leases [Line Items] | ||
Fiscal 2019 | $ 292,387 | |
Fiscal 2020 | $ 265,375 | 262,429 |
Fiscal 2021 | 233,052 | 225,755 |
Fiscal 2022 | 201,593 | 190,263 |
Fiscal 2023 | 170,283 | 160,308 |
Thereafter | 559,802 | |
Total lease payments | $ 1,602,688 | $ 1,690,944 |