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8-K - FORM 8-K - WILLIAMS SONOMA INC | d691119d8k.htm |
EX-99.2 - EX-99.2 - WILLIAMS SONOMA INC | d691119dex992.htm |
Exhibit 99.1
3250 Van Ness Avenue
San Francisco, CA 94109
CONTACT: Julie P. Whalen EVP, Chief Financial Officer (415) 616-8524
Gabrielle L. Rabinovitch Director, Investor Relations (415) 616-7727 |
PRESS RELEASE
Williams-Sonoma, Inc. announces 4th quarter and fiscal year 2013 results
4th quarter 2013 comparable brand revenues grow 10.4%, EPS increases to $1.38
Williams-Sonoma, Inc. provides financial guidance for fiscal year 2014
Authorizes $0.02, or 6%, quarterly dividend increase to $0.33 per common share
San Francisco, CA, March 12, 2014 Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the fourth quarter of fiscal 2013 (Q4 13) and fiscal year ended February 2, 2014 (FY 13). Q4 13 included 13 weeks versus 14 weeks in the fourth quarter of fiscal 2012 ended February 3, 2013 (Q4 12). FY 13 included 52 weeks versus 53 weeks in the fiscal year ended February 3, 2013 (FY 12).
In Q4 12 and FY 12, the additional week contributed approximately $70 million in net revenues and an estimated $0.07 benefit to diluted earnings per share (EPS).
Laura Alber, President and Chief Executive Officer, commented, Williams-Sonoma, Inc. outperformed the retail industry this holiday season, gaining market share and demonstrating the structural advantage of our multi-brand, multi-channel platform. The strength of our brands across retail and e-commerce, in conjunction with disciplined execution, enabled our team to drive record operating results.
RELEASE HIGHLIGHTS
4th Quarter 2013
| Q4 13 net revenues grew to $1.466 billion versus $1.406 billion in Q4 12 with comparable brand revenue growth of 10.4%. |
| Q4 13 operating income grew to $218 million and operating margin was 14.8%. |
| Q4 13 EPS grew to $1.38. |
Fiscal Year 2013
| FY 13 net revenues increased to $4.388 billion versus $4.043 billion in FY 12 with comparable brand revenue growth of 8.8%. |
| FY 13 operating income grew to $452 million and operating margin was 10.3%. Excluding unusual business events, non-GAAP operating income increased to $455 million and non-GAAP operating margin was 10.4%. |
| FY 13 EPS grew to $2.82. Excluding unusual business events, non-GAAP EPS increased to $2.84. |
| Cash returned to stockholders totaled $351 million, comprising $239 million in stock repurchases and $112 million in dividends. |
Alber continued, Throughout the year we kept our focus on the customer by providing a differentiated and highly relevant experience. At the same time, we executed our strategic plan, investing in our brands and the supporting infrastructure to ensure sustainable long-term growth both domestically and around the world. The results speak for themselves: we delivered strong top and bottom line performance, which combined with over $350 million in share repurchases and dividends generated superior returns for our stockholders.
Alber concluded, These results confirm that our key strategies are working, and position us well for 2014 and beyond. In all of our brands we develop product that is inspiring, relevant, high quality and competitively priced. We believe that our lifestyle merchandising approach, together with our high-touch service model, separates us from commoditized offerings as we help our customers decorate, entertain, and create the homes of their dreams. Our multi-channel marketing, built from decades of data analytics experience, enables us to reach our customers and attract new ones in increasingly relevant ways. Our e-commerce business, which represented 44% of our net revenues in fiscal 2013, is growing rapidly, allowing us to capture even greater market share as more consumers transition to online shopping in our categories. Our vertically integrated supply chain is enabling us to deliver exceptional quality and value to our customers. Underlying all of these initiatives is our culture of strong financial discipline, integrity, and a commitment to social responsibility. We remain confident in our brands, our leadership team, and our ability to execute our plan. We look forward to continuing to deliver long-term value for our stockholders.
4th QUARTER 2013 RESULTS
Net revenues increased to $1.466 billion in Q4 13 from $1.406 billion in Q4 12. Excluding the additional week in Q4 12, net revenues grew 10.0%.
Comparable brand revenue growth in Q4 13 increased 10.4% on top of 4.0% in Q4 12 as shown in the table below:
4th Quarter Comparable Brand Revenue Growth by Concept*
Q4 13 | Q4 12 | |||||||
Pottery Barn |
14.6 | % | 4.0% | |||||
Williams-Sonoma |
2.3 | % | (1.7%) | |||||
Pottery Barn Kids |
11.2 | % | 7.7% | |||||
West Elm |
18.3 | % | 19.1% | |||||
PBteen |
9.6 | % | 6.4% | |||||
Total |
10.4 | % | 4.0% | |||||
|
* See the companys 10-K and 10-Q filings for the definition of comparable brand revenue growth.
Direct-to-customer (DTC) net revenues in Q4 13 increased to $706 million from $634 million in Q4 12. Excluding the additional week in Q4 12, DTC net revenues grew 19.0%, primarily driven by Pottery Barn, Pottery Barn Kids, West Elm and Williams-Sonoma. DTC net revenues generated 48% of total company net revenues in Q4 13, compared to 45% in Q4 12.
Retail net revenues in Q4 13 were $760 million versus $773 million in Q4 12. Excluding the additional week in Q4 12, retail net revenues grew 2.7%, primarily driven by Pottery Barn and West Elm, partially offset by a decrease in Williams-Sonoma and our international franchise operations.
Operating margin in Q4 13 was 14.8% compared to 15.0% in Q4 12:
| Gross margin was 40.6% versus 41.3% in Q4 12. |
| Selling, general and administrative (SG&A) expenses were $378 million, or 25.8% of net revenues, versus $370 million, or 26.3%, in Q4 12. |
EPS in Q4 13 increased to $1.38. Excluding the additional week in Q4 12, EPS increased 8.7%.
2
FISCAL YEAR 2013 RESULTS
Net revenues increased to $4.388 billion in FY 13 from $4.043 billion in FY 12. Excluding the additional week in FY 12, net revenues grew 10.5%.
Comparable brand revenue growth in FY 13 increased 8.8% on top of 6.1% in FY 12 as shown in the table below:
Fiscal Year Net Revenues and Comparable Brand Revenue Growth by Concept*
Net Revenues (Millions) | Comparable Brand Revenue Growth |
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FY 13 (52 Weeks) |
FY 12 (53 Weeks) |
FY 13 | FY 12 | |||||||||||||
Pottery Barn |
$ 1,911 | $ 1,753 | 10.4% | 8.5% | ||||||||||||
Williams-Sonoma |
978 | 981 | 1.5% | (1.7%) | ||||||||||||
Pottery Barn Kids |
598 | 558 | 7.8% | 5.6% | ||||||||||||
West Elm |
531 | 430 | 17.4% | 17.4% | ||||||||||||
PBteen |
246 | 220 | 14.1% | 1.7% | ||||||||||||
Other |
124 | 101 | N/A | N/A | ||||||||||||
Total |
$ 4,388 | $ 4,043 | 8.8% | 6.1% | ||||||||||||
|
* | See the companys 10-K and 10-Q filings for the definition of comparable brand revenue growth. |
DTC net revenues in FY 13 increased to $2.115 billion versus $1.869 billion in FY 12. Excluding the additional week in FY 12, DTC net revenues grew 15.6%, with increases across all brands. This growth was primarily led by Pottery Barn, West Elm, Pottery Barn Kids and PBteen. DTC net revenues generated 48% of total company net revenues in FY 13 versus 46% in FY 12.
Retail net revenues in FY 13 increased to $2.273 billion versus $2.173 billion in FY 12. Excluding the additional week in FY 12, retail net revenues grew 6.2%, primarily driven by Pottery Barn, West Elm and our international franchise operations, partially offset by a decrease in Williams-Sonoma. Retail leased square footage increased 1%.
Operating margin in FY 13 was 10.3% versus 10.1% in FY 12. Excluding unusual business events, non-GAAP operating margin in FY 13 was 10.4% versus 10.3% in FY 12.
| Gross margin was 38.8% versus 39.4% in FY 12. |
| SG&A expenses were $1.252 billion, or 28.5% of net revenues, versus $1.183 billion, or 29.3% in FY 12. Excluding the less than 10 basis point impact related to unusual business events in FY 13 and the 20 basis point impact related to unusual business events in FY 12, non-GAAP SG&A expenses were $1.249 billion, or 28.5% versus $1.176 billion, or 29.1% in FY 12. |
The effective income tax rate in FY 13 was 38.4% versus 37.4% in FY 12. The FY 12 tax rate reflects certain favorable income tax resolutions and credits.
EPS in FY 13 increased to $2.82. Excluding unusual business events in FY 13, non-GAAP EPS was $2.84, an increase of 13.1% after excluding the impact of the additional week in FY 12.
Merchandise inventories at the end of FY 13 increased 27.1% to $813 million from $640 million at the end of FY 12. Excluding the impact of additional inventory in transit due to taking ownership of our inventory earlier in the supply chain in FY 13 versus FY 12, merchandise inventories increased 16.9% on a comparable basis.
3
DIVIDEND INCREASE AND STOCK REPURCHASE PROGRAM
As announced in a separate release today, our Board of Directors has authorized a 6% increase in our quarterly cash dividend to $0.33 per common share. During Q4 13, we repurchased 402,810 shares of common stock for a total of 4.3 million shares or $239 million in FY 13. As of February 2, 2014, $511 million remained under the three-year $750 million stock repurchase program announced in March 2013.
FISCAL YEAR 2014 FINANCIAL GUIDANCE
1st Quarter 2014 Guidance
| Net revenues in the first quarter of fiscal 2014 (Q1 14) are expected to be in the range of $920 million to $940 million. |
| Comparable brand revenue growth in Q1 14 is expected to be in the range of 4% to 6%. |
| Diluted EPS in Q1 14 is expected to be in the range of $0.41 to $0.44. |
Fiscal Year 2014 Guidance
Financial Highlights
Total Net Revenues (millions) |
$4,630 | | $4,710 | |||
Comparable Brand Revenue Growth |
5 | | 7% | |||
Operating Margin |
10.2 | | 10.4% | |||
Diluted EPS |
$3.05 | | $3.15 | |||
Income Tax Rate |
38.0 | | 38.5% | |||
Capital Spending (millions) |
$200 | | $220 | |||
Depreciation and Amortization (millions) |
$160 | | $170 |
Store Opening and Closing Guidance by Retail Concept
FY 2013 ACT* | FY 2014 GUID | |||||||||||||||
Total | New | Close | End | |||||||||||||
Williams-Sonoma |
248 | 5 | (12 | ) | 241 | |||||||||||
Pottery Barn |
194 | 7 | (5 | ) | 196 | |||||||||||
Pottery Barn Kids |
81 | 7 | (5 | ) | 83 | |||||||||||
West Elm |
58 | 12 | - | 70 | ||||||||||||
Rejuvenation |
4 | - | - | 4 | ||||||||||||
Total |
585 | 31 | (22 | ) | 594 | |||||||||||
|
* | Included in the FY 13 numbers above are 5 stores in Australia (2 West Elm, 1 Williams-Sonoma, 1 Pottery Barn and 1 Pottery Barn Kids) and 1 West Elm store in the UK. |
CONFERENCE CALL AND WEBCAST INFORMATION
Williams-Sonoma, Inc. will host a live conference call today, March 12, 2014, at 2:00 P.M. (PT). The call, hosted by Laura Alber, President and Chief Executive Officer, will be open to the general public via live webcast and can be accessed at www.williams-sonomainc.com/webcast. A replay of the webcast will be available at www.williams-sonomainc.com/webcast.
4
SEC REGULATION G NON-GAAP INFORMATION
This press release includes non-GAAP SG&A, operating income, operating margin and diluted EPS. These non-GAAP financial measures exclude the impact of employee separation charges in FY 13 and FY 12. We have reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in the text of this release and in Exhibit 1. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly and FY 13 actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include statements relating to: our execution of our key strategies; the success of our merchandising approach; our ability to reach customers and attract new ones; our ability to capture market share as our e-commerce business expands; our future financial guidance, including Q1 14 and FY 2014 guidance; our three-year stock repurchase program; and our proposed store openings and closures.
The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: accounting adjustments as we close our books for Q4 13 and as audited year-end financial statements are prepared; continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; new interpretations of or changes to current accounting rules; our ability to anticipate consumer preferences and buying trends; dependence on timely introduction and customer acceptance of our merchandise; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays in store openings; competition from companies with concepts or products similar to ours; timely and effective sourcing of merchandise from our foreign and domestic vendors and delivery of merchandise through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; successful catalog management, including timing, sizing and merchandising; uncertainties in e-marketing, infrastructure and regulation; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; dependence on external funding sources for operating capital; disruptions in the financial markets; our ability to control employment, occupancy and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and market conditions and events, including war, conflict or acts of terrorism; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 3, 2013 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.
ABOUT WILLIAMS-SONOMA, INC.
Williams-Sonoma, Inc. is a specialty retailer of high-quality products for the home. These products, representing eight distinct merchandise strategies Williams-Sonoma (cookware and wedding registry), Pottery Barn (furniture and wedding registry), Pottery Barn Kids (kids furniture and baby registry), PBteen (girls bedding and boys bedding), West Elm (modern furniture and room decor), Williams-Sonoma Home (luxury furniture and decorative accessories), Rejuvenation (lighting and hardware) and Mark and Graham (personalized gifts and gifts for the home) are marketed through e-commerce websites, direct mail catalogs and 585 stores. Williams-Sonoma, Inc. currently operates in the United States, Canada, Australia and the United Kingdom, offers international shipping to customers worldwide and has an unaffiliated franchisee that operates 27 stores in the Middle East.
5
Williams-Sonoma, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
Thirteen weeks ended February 2, 2014 and
Fourteen weeks ended February 3, 2013
(Dollars and shares in thousands, except per share amounts)
4th Quarter | ||||||||||||||||||
2013 (13 Weeks) | 2012 (14 Weeks) | |||||||||||||||||
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$ | % of Revenues |
$ | % of Revenues |
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Direct-to-customer net revenues |
$ 706,407 | 48.2% | $ 633,503 | 45.0% | ||||||||||||||
Retail net revenues |
759,917 | 51.8 | 772,916 | 55.0 | ||||||||||||||
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Net revenues |
1,466,324 | 100.0 | 1,406,419 | 100.0 | ||||||||||||||
Cost of goods sold |
870,605 | 59.4 | 825,687 | 58.7 | ||||||||||||||
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Gross margin |
595,719 | 40.6 | 580,732 | 41.3 | ||||||||||||||
Selling, general and administrative expenses |
377,984 | 25.8 | 370,291 | 26.3 | ||||||||||||||
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Operating income |
217,735 | 14.8 | 210,441 | 15.0 | ||||||||||||||
Interest (income), net |
(168 | ) | - | (261 | ) | - | ||||||||||||
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Earnings before income taxes |
217,903 | 14.9 | 210,702 | 15.0 | ||||||||||||||
Income taxes |
84,105 | 5.7 | 76,968 | 5.5 | ||||||||||||||
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Net earnings |
$ 133,798 | 9.1% | $ 133,734 | 9.5% | ||||||||||||||
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Earnings per share (EPS): |
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Basic |
$1.42 | $1.36 | ||||||||||||||||
Diluted |
$1.38 | $1.34 | ||||||||||||||||
Shares used in calculation of EPS: |
||||||||||||||||||
Basic |
94,271 | 98,015 | ||||||||||||||||
Diluted |
96,973 | 99,949 |
6
Williams-Sonoma, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
Fifty-two weeks ended February 2, 2014 and
Fifty-three weeks ended February 3, 2013
(Dollars and shares in thousands, except per share amounts)
Fiscal Year | ||||||||||||||||||
2013 (52 Weeks) | 2012 (53 Weeks) | |||||||||||||||||
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$ | % of Revenues |
$ | % of Revenues |
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Direct-to-customer net revenues |
$2,115,022 | 48.2% | $1,869,386 | 46.2% | ||||||||||||||
Retail net revenues |
2,272,867 | 51.8 | 2,173,484 | 53.8 | ||||||||||||||
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Net revenues |
4,387,889 | 100.0 | 4,042,870 | 100.0 | ||||||||||||||
Cost of goods sold |
2,683,673 | 61.2 | 2,450,394 | 60.6 | ||||||||||||||
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Gross margin |
1,704,216 | 38.8 | 1,592,476 | 39.4 | ||||||||||||||
Selling, general and administrative expenses |
1,252,118 | 28.5 | 1,183,313 | 29.3 | ||||||||||||||
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Operating income |
452,098 | 10.3 | 409,163 | 10.1 | ||||||||||||||
Interest (income), net |
(584 | ) | - | (793 | ) | - | ||||||||||||
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Earnings before income taxes |
452,682 | 10.3 | 409,956 | 10.1 | ||||||||||||||
Income taxes |
173,780 | 4.0 | 153,226 | 3.8 | ||||||||||||||
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Net earnings |
$ 278,902 | 6.4% | $ 256,730 | 6.4% | ||||||||||||||
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Earnings per share (EPS): |
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Basic |
$2.89 | $2.59 | ||||||||||||||||
Diluted |
$2.82 | $2.54 | ||||||||||||||||
Shares used in calculation of EPS: |
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Basic |
96,669 | 99,266 | ||||||||||||||||
Diluted |
98,765 | 101,051 |
7
Williams-Sonoma, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(Dollars in thousands)
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Feb. 2, 2014 | Feb. 3, 2013 | |||||||||
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Assets |
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Current assets |
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Cash and cash equivalents |
$ 330,121 | $ 424,555 | ||||||||
Restricted cash |
14,289 | 16,055 | ||||||||
Accounts receivable, net |
60,330 | 62,985 | ||||||||
Merchandise inventories, net |
813,160 | 640,024 | ||||||||
Prepaid catalog expenses |
33,556 | 37,231 | ||||||||
Prepaid expenses |
35,309 | 26,339 | ||||||||
Deferred income taxes, net |
121,486 | 99,764 | ||||||||
Other assets |
10,852 | 9,819 | ||||||||
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Total current assets |
1,419,103 | 1,316,772 | ||||||||
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Property and equipment, net |
849,293 | 812,037 | ||||||||
Non-current deferred income taxes, net |
13,824 | 12,398 | ||||||||
Other assets, net |
54,514 | 46,472 | ||||||||
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Total assets |
2,336,734 | 2,187,679 | ||||||||
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Liabilities and stockholders equity |
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Current liabilities |
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Accounts payable |
404,791 | 259,162 | ||||||||
Accrued salaries, benefits and other |
138,181 | 120,632 | ||||||||
Customer deposits |
228,193 | 207,415 | ||||||||
Income taxes payable |
49,365 | 41,849 | ||||||||
Current portion of long-term debt |
1,785 | 1,724 | ||||||||
Other liabilities |
38,781 | 26,345 | ||||||||
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Total current liabilities |
861,096 | 657,127 | ||||||||
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Deferred rent and lease incentives |
157,856 | 171,198 | ||||||||
Long-term debt |
1,968 | 3,753 | ||||||||
Other long-term obligations |
59,812 | 46,463 | ||||||||
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Total liabilities |
1,080,732 | 878,541 | ||||||||
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Stockholders equity |
1,256,002 | 1,309,138 | ||||||||
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Total liabilities and stockholders equity |
$ 2,336,734 | $ 2,187,679 | ||||||||
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ADDITIONAL INFORMATION | Store Count |
Avg. Leased Square Footage Per Store |
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Nov. 3, 2013 |
Openings | Closings | Feb. 2, 2014 |
Feb. 3, 2013 |
Feb. 2, 2014 |
Feb. 3, 2013 |
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Williams-Sonoma |
256 | - | (8 | ) | 248 | 253 | 6,600 | 6,600 | ||||||||||||||||||||||
Pottery Barn |
196 | 1 | (3 | ) | 194 | 192 | 13,800 | 13,900 | ||||||||||||||||||||||
Pottery Barn Kids |
84 | 2 | (5 | ) | 81 | 84 | 7,900 | 8,100 | ||||||||||||||||||||||
West Elm |
55 | 3 | - | 58 | 48 | 14,100 | 14,900 | |||||||||||||||||||||||
Rejuvenation |
4 | - | - | 4 | 4 | 13,200 | 13,200 | |||||||||||||||||||||||
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Total |
595 | 6 | (16 | ) | 585 | 581 | 10,000 | 9,900 | ||||||||||||||||||||||
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Nov. 3, 2013 | Feb. 2, 2014 | Feb. 3, 2013 | ||||||||||
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Total store selling square footage |
3,632,000 | 3,590,000 | 3,548,000 | |||||||||
Total store leased square footage |
5,908,000 | 5,838,000 | 5,778,000 |
8
Williams-Sonoma, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
Fifty-two weeks ended February 2, 2014 and
Fifty-three weeks ended February 3, 2013
(Dollars in thousands)
Fiscal Year
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2013 (52 Weeks) |
2012 (53 Weeks) |
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Cash flows from operating activities |
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Net earnings |
$ | 278,902 | $ | 256,730 | ||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
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Depreciation and amortization |
149,795 | 134,453 | ||||||||
Loss on sale/disposal/impairment of assets |
2,764 | 8,388 | ||||||||
Amortization of deferred lease incentives |
(25,382 | ) | (26,694 | ) | ||||||
Deferred income taxes |
(28,344 | ) | (9,029 | ) | ||||||
Tax benefit from exercise of stock-based awards |
8,817 | 12,725 | ||||||||
Excess tax benefit from exercise of stock-based awards |
(8,743 | ) | (12,683 | ) | ||||||
Stock-based compensation expense |
38,788 | 31,042 | ||||||||
Changes in: |
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Accounts receivable |
786 | (16,408 | ) | |||||||
Merchandise inventories |
(174,664 | ) | (85,981 | ) | ||||||
Prepaid catalog expenses |
3,675 | (2,937 | ) | |||||||
Prepaid expenses and other assets |
(13,649 | ) | (12,204 | ) | ||||||
Accounts payable |
135,095 | 22,461 | ||||||||
Accrued salaries, benefits and other current and long-term liabilities |
43,635 | 9,147 | ||||||||
Customer deposits |
21,578 | 16,962 | ||||||||
Deferred rent and lease incentives |
13,238 | 18,803 | ||||||||
Income taxes payable |
7,478 | 19,352 | ||||||||
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Net cash provided by operating activities |
453,769 | 364,127 | ||||||||
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Cash flows from investing activities: |
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Purchases of property and equipment |
(193,953 | ) | (205,404 | ) | ||||||
Restricted cash deposits |
1,766 | (1,323 | ) | |||||||
Other |
1,563 | (88 | ) | |||||||
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Net cash used in investing activities |
(190,624 | ) | (206,815 | ) | ||||||
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Cash flows from financing activities: |
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Repurchase of common stock |
(239,274 | ) | (155,080 | ) | ||||||
Payment of dividends |
(111,581 | ) | (87,847 | ) | ||||||
Tax withholdings related to stock-based awards |
(18,096 | ) | (18,637 | ) | ||||||
Excess tax benefit from exercise of stock-based awards |
8,743 | 12,683 | ||||||||
Net proceeds from exercise of stock-based awards |
6,614 | 14,637 | ||||||||
Repayments of long-term obligations |
(1,724 | ) | (1,796 | ) | ||||||
Other |
(58 | ) | (405 | ) | ||||||
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|
|
|
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Net cash used in financing activities |
(355,376 | ) | (236,445 | ) | ||||||
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|
|
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Effect of exchange rates on cash and cash equivalents |
(2,203 | ) | 931 | |||||||
Net decrease in cash and cash equivalents |
(94,434 | ) | (78,202 | ) | ||||||
Cash and cash equivalents at beginning of period |
424,555 | 502,757 | ||||||||
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Cash and cash equivalents at end of period |
$ | 330,121 | $ | 424,555 | ||||||
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9
Exhibit 1
4th Quarter Operating Margin By Segment*
($ in thousands)
DTC | Retail | Unallocated | Total | |||||||||||||||||||||||||||||
Q4 13 | Q4 12 | Q4 13 | Q4 12 | Q4 13 | Q4 12 | Q4 13 | Q4 12 | |||||||||||||||||||||||||
Net Revenues |
$ | 706,407 | $ | 633,503 | $ | 759,917 | $ | 772,916 | $ | - | $ | - | $ | 1,466,324 | $ | 1,406,419 | ||||||||||||||||
Operating Income/(Expense) |
174,625 | 144,889 | 130,969 | 145,941 | (87,859) | (80,389) | 217,735 | 210,441 | ||||||||||||||||||||||||
Operating Margin |
24.7% | 22.9% | 17.2% | 18.9% | (6.0%) | (5.7%) | 14.8% | 15.0% | ||||||||||||||||||||||||
|
Reconciliation of Fiscal Year Actual GAAP to Non-GAAP
Operating Margin By Segment*
($ in thousands)
DTC | Retail | Unallocated | Total | |||||||||||||||||||||||||||||
FY 13 | FY 12 | FY 13 | FY 12 | FY 13 | FY 12 | FY 13 | FY 12 | |||||||||||||||||||||||||
Net Revenues | $ | 2,115,022 | $ | 1,869,386 | $ | 2,272,867 | $ | 2,173,484 | $ | - | $ | - | $ | 4,387,889 | $ | 4,042,870 | ||||||||||||||||
GAAP Operating Income/(Expense) | 502,143 | 418,836 | 248,894 | 262,899 | (298,939) | (272,572) | 452,098 | 409,163 | ||||||||||||||||||||||||
GAAP Operating Margin | 23.7% | 22.4% | 11.0% | 12.1% | (6.8%) | (6.7%) | 10.3% | 10.1% | ||||||||||||||||||||||||
|
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Unusual Business Events (UBE) (1,2) | - | - | - | - | 2,936 | 6,990 | 2,936 | 6,990 | ||||||||||||||||||||||||
Non-GAAP Operating Income/ (Expense) Excluding UBE (3) |
$ | 502,143 | $ | 418,836 | $ | 248,894 | $ | 262,899 | $ | (296,003) | $ | (265,582) | $ | 455,034 | $ | 416,153 | ||||||||||||||||
Non-GAAP Operating Margin (3) | 23.7% | 22.4% | 11.0% | 12.1% | (6.7%) | (6.6%) | 10.4% | 10.3% | ||||||||||||||||||||||||
|
Reconciliation of Fiscal Year Actual GAAP to Non-GAAP
Diluted Earnings Per Share**
(Totals rounded to the nearest cent per diluted share)
Q1 13 (13 Weeks) |
Q2 13 (13 Weeks) |
Q3 13 (13 Weeks) |
Q4 13 (13 Weeks) |
FY 13 (52 Weeks) |
||||||||||||||||
2013 GAAP Diluted EPS |
$0.40 | $0.49 | $0.58 | $1.38 | $2.82 | |||||||||||||||
Impact of Employee Separation Charges (1) |
0.02 | - | - | - | 0.02 | |||||||||||||||
2013 Non-GAAP Diluted EPS Excluding UBE (3)*** |
$0.41 | $0.49 | $0.58 | $1.38 | $2.84 | |||||||||||||||
|
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Q1 12 (13 Weeks) |
Q2 12 (13 Weeks) |
Q3 12 (13 Weeks) |
Q4 12 (14 Weeks) |
FY 12 (53 Weeks) |
||||||||||||||||
2012 GAAP Diluted EPS |
$0.30 | $0.43 | $0.49 | $1.34 | $2.54 | |||||||||||||||
Impact of Employee Separation Charges (2) |
0.04 | - | - | - | 0.04 | |||||||||||||||
2012 Non-GAAP Diluted EPS Excluding UBE (3)*** |
$0.34 | $0.43 | $0.49 | $1.34 | $2.58 | |||||||||||||||
|
* | See the companys 10-K and 10-Q filings for additional information on segment reporting and the definition of Operating Income/(Expense) and Operating Margin. |
** | Due to the differences between the quarterly and year-to-date weighted average share count calculations and the effect of quarterly rounding to the nearest cent per diluted share, the year-to-date calculation of GAAP and non-GAAP diluted EPS may not equal the sum of the quarters. |
*** | Due to rounding to the nearest cent per diluted share, totals may not equal the sum of the line items in the table above. |
Notes:
(1) | Impact of Employee Separation Charges During Q1 13 and FY 13, we incurred charges of approximately $0.02 per diluted share associated with the previously announced retirement of the former President of the Williams-Sonoma brand. These charges were recorded within the unallocated segment. |
(2) | Impact of Employee Separation Charges During Q1 12 and FY 12, we incurred charges of approximately $0.04 per diluted share primarily associated with the previously announced retirement of our former Executive Vice President, Chief Operating and Chief Financial Officer. These charges were recorded within the unallocated segment. |
(3) | SEC Regulation G Non-GAAP Information These tables include non-GAAP operating income, operating margin and diluted EPS. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly and FY 13 actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. |
10