☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-2203880 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||
3250 Van Ness Avenue, San Francisco, CA | 94109 | ||
(Address of principal executive offices) | (Zip Code) |
Title of each class: | Trading Symbol(s): | Name of each exchange on which registered: | ||
Common Stock, par value $.01 per share | WSM | New York Stock Exchange, Inc. |
PAGE | |||||||||
PART I | |||||||||
Item 1. | 3 | ||||||||
Item 1A. | |||||||||
Item 1B. | |||||||||
Item 2. | |||||||||
Item 3. | |||||||||
Item 4. | |||||||||
PART II | |||||||||
Item 5. | |||||||||
Item 6. | |||||||||
Item 7. | |||||||||
Item 7A. | |||||||||
Item 8. | |||||||||
Item 9. | |||||||||
Item 9A. | |||||||||
Item 9B. | |||||||||
PART III | |||||||||
Item 10. | |||||||||
Item 11. | |||||||||
Item 12. | |||||||||
Item 13. | |||||||||
Item 14. | |||||||||
PART IV | |||||||||
Item 15. | |||||||||
Item 16. |
ITEM 1. | BUSINESS |
ITEM 1A. | RISK FACTORS |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
Location | |||||||
Occupied Square Footage (Approximate) | |||||||
Distribution and Manufacturing Facilities | |||||||
Mississippi | |||||||
New Jersey | 2,103,000 | ||||||
California | 2,030,000 | ||||||
1,298,000 | |||||||
Georgia | 1,075,000 | ||||||
Tennessee | 603,000 | ||||||
North Carolina | 442,000 | ||||||
Ohio | |||||||
Massachusetts | 140,000 | ||||||
Florida | 135,000 | ||||||
Oregon | 91,000 | ||||||
Colorado | 80,000 | ||||||
Corporate Facilities | |||||||
California | 269,000 | ||||||
New York | 238,000 | ||||||
Oregon | 49,000 | ||||||
Customer Care Centers | |||||||
Nevada | 36,000 | ||||||
Other | 32,000 |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
* | $100 invested on |
2/1/15 | 1/31/16 | 1/29/17 | 1/28/18 | 2/3/19 | 2/2/20 | ||||||||||||||||||||
Williams-Sonoma, Inc. | 100.00 | 67.37 | 63.72 | 73.87 | 77.06 | 102.95 | |||||||||||||||||||
NYSE Composite Index | 100.00 | 93.70 | 112.69 | 139.56 | 129.47 | 146.66 | |||||||||||||||||||
S&P Retailing | 100.00 | 118.07 | 140.98 | 203.43 | 210.40 | 253.71 |
1/31/16 | 1/29/17 | 1/28/18 | 2/3/19 | 2/2/20 | 1/31/21 | |||||||
Williams-Sonoma, Inc. | $100.00 | $94.58 | $109.64 | $114.38 | $152.80 | $287.90 | ||||||
NYSE Composite Index | $100.00 | $119.63 | $146.03 | $137.82 | $156.52 | $169.59 | ||||||
S&P Retailing | $100.00 | $120.09 | $174.49 | $186.29 | $219.46 | $316.05 |
A. | The lines represent monthly index levels derived from compounded daily returns that include all dividends. |
B. | The indices are re-weighted daily, using the market capitalization on the previous trading day. |
C. | If the monthly interval, based on the fiscal year-end, is not a trading day, the preceding trading day is used. |
Fiscal period | Total Number of Shares Purchased 1 | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program 1 | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program | ||||||||||||||
November 4, 2019 | – December 1, 2019 | 160,918 | $ 69.90 | 160,918 | $ 599,853,000 | |||||||||||||
December 2, 2019 | – December 29, 2019 | 158,780 | $ 70.85 | 158,780 | $ 588,604,000 | |||||||||||||
December 30, 2019 | – February 2, 2020 | 183,262 | $ 74.33 | 183,262 | $ 574,982,000 | |||||||||||||
Total | 502,960 | $ 71.81 | 502,960 | $ 574,982,000 |
Fiscal period | | Total Number of Shares Purchased 1 | | Average Price Paid Per Share | | Total Number of Shares Purchased as Part of a Publicly Announced Program 1 | | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program | ||||||||||
November 2, 2020 – November 29, 2020 | 125,310 | $ 98.91 | 125,310 | $ 453,539,000 | ||||||||||||||
November 30, 2020 – December 27, 2020 | 116,800 | $ 108.75 | 116,800 | $ 440,837,000 | ||||||||||||||
December 28, 2020 – January 31, 2021 | 134,655 | $ 117.75 | 134,655 | $ 424,982,000 | ||||||||||||||
Total | 376,765 | $ 108.69 | 376,765 | $ 424,982,000 |
1 | Excludes shares withheld for employee taxes upon vesting of stock-based awards. |
ITEM 6. | SELECTED FINANCIAL DATA |
In thousands, except percentages, per share amounts and retail stores data | Fiscal 2019 (52 Weeks) | Fiscal 2018 1 (53 Weeks) | Fiscal 2017 (52 Weeks) | Fiscal 2016 (52 Weeks) | Fiscal 2015 (52 Weeks) | |||||||||||||||
Results of Operations | ||||||||||||||||||||
Net revenues | $ | 5,898,008 | $ | 5,671,593 | $ | 5,292,359 | $ | 5,083,812 | $ | 4,976,090 | ||||||||||
Net revenue growth | 4.0% | 7.2% | 4.1% | 2.2% | 5.9% | |||||||||||||||
Comparable brand revenue growth 2 | 6.0% | 3.7% | 3.2% | 0.7% | 3.7% | |||||||||||||||
Gross profit | $ | 2,139,092 | $ | 2,101,013 | $ | 1,931,711 | $ | 1,883,310 | $ | 1,844,214 | ||||||||||
Gross margin | 36.3% | 37.0% | 36.5% | 37.0% | 37.1% | |||||||||||||||
Operating income | $ | 465,874 | $ | 435,953 | $ | 453,811 | $ | 472,599 | $ | 488,634 | ||||||||||
Operating margin 3 | 7.9% | 7.7% | 8.6% | 9.3% | 9.8% | |||||||||||||||
Net earnings | $ | 356,062 | $ | 333,684 | $ | 259,545 | $ | 305,387 | $ | 310,068 | ||||||||||
Basic earnings per share | $ | 4.56 | $ | 4.10 | $ | 3.03 | $ | 3.45 | $ | 3.42 | ||||||||||
Diluted earnings per share | $ | 4.49 | $ | 4.05 | $ | 3.02 | $ | 3.41 | $ | 3.37 | ||||||||||
Shares used in calculation of earnings per share: Basic | 78,108 | 81,420 | 85,592 | 88,594 | 90,787 | |||||||||||||||
Diluted | 79,225 | 82,340 | 86,080 | 89,462 | 92,102 | |||||||||||||||
Financial Position | ||||||||||||||||||||
Working capital 4 | $ | 146,080 | $ | 619,531 | $ | 628,622 | $ | 405,924 | $ | 339,673 | ||||||||||
Total assets 4 | $ | 4,054,042 | $ | 2,812,844 | $ | 2,785,749 | $ | 2,476,879 | $ | 2,417,427 | ||||||||||
Return on assets 4 | 10.4% | 11.9% | 9.9% | 12.5% | 13.1% | |||||||||||||||
Net cash provided by operating activities | $ | 607,294 | $ | 585,986 | $ | 499,704 | $ | 524,709 | $ | 544,026 | ||||||||||
Capital expenditures | $ | 186,276 | $ | 190,102 | $ | 189,712 | $ | 197,414 | $ | 202,935 | ||||||||||
Long-term debt and other long-term liabilities 4 | $ | 1,180,968 | $ | 380,944 | $ | 372,226 | $ | 71,215 | $ | 49,713 | ||||||||||
Stockholders’ equity | $ | 1,235,860 | $ | 1,155,714 | $ | 1,203,566 | $ | 1,248,220 | $ | 1,198,226 | ||||||||||
Stockholders’ equity per share (book value) | $ | 16.02 | $ | 14.66 | $ | 14.37 | $ | 14.29 | $ | 13.38 | ||||||||||
Return on equity | 29.8% | 28.3% | 21.2% | 25.0% | 25.6% | |||||||||||||||
Annual dividends declared per share | $ | 1.92 | $ | 1.72 | $ | 1.56 | $ | 1.48 | $ | 1.40 | ||||||||||
Number of stores at year-end | 614 | 625 | 631 | 629 | 618 | |||||||||||||||
Store selling square footage at year-end | 4,129,000 | 4,105,000 | 4,019,000 | 3,951,000 | 3,827,000 | |||||||||||||||
Store leased square footage at year-end | 6,558,000 | 6,557,000 | 6,451,000 | 6,359,000 | 6,163,000 |
In thousands, except percentages, per share amounts and retail stores data | Fiscal 2020 (52 Weeks) | Fiscal 2019 (52 Weeks) | Fiscal 2018 1 (53 Weeks) | Fiscal 2017 (52 Weeks) | Fiscal 2016 (52 Weeks) | |||||||||||||||
Results of Operations | ||||||||||||||||||||
Net revenues | $ | 6,783,189 | $ | 5,898,008 | $ | 5,671,593 | $ | 5,292,359 | $ | 5,083,812 | ||||||||||
Net revenue growth | 15.0% | 4.0% | 7.2% | 4.1% | 2.2% | |||||||||||||||
Comparable brand revenue growth 2 | 17.0% | 6.0% | 3.7% | 3.2% | 0.7% | |||||||||||||||
Gross profit | $ | 2,636,269 | $ | 2,139,092 | $ | 2,101,013 | $ | 1,931,711 | $ | 1,883,310 | ||||||||||
Gross margin | 38.9% | 36.3% | 37.0% | 36.5% | 37.0% | |||||||||||||||
Operating income | $ | 910,697 | $ | 465,874 | $ | 435,953 | $ | 453,811 | $ | 472,599 | ||||||||||
Operating margin 3 | 13.4% | 7.9% | 7.7% | 8.6% | 9.3% | |||||||||||||||
Net earnings | $ | 680,714 | $ | 356,062 | $ | 333,684 | $ | 259,545 | $ | 305,387 | ||||||||||
Basic earnings per share | $ | 8.81 | $ | 4.56 | $ | 4.10 | $ | 3.03 | $ | 3.45 | ||||||||||
Diluted earnings per share | $ | 8.61 | $ | 4.49 | $ | 4.05 | $ | 3.02 | $ | 3.41 | ||||||||||
Shares used in calculation of Basic | 77,260 | 78,108 | 81,420 | 85,592 | 88,594 | |||||||||||||||
Diluted | 79,055 | 79,225 | 82,340 | 86,080 | 89,462 | |||||||||||||||
Financial Position | ||||||||||||||||||||
Working capital 4 | $ | 619,080 | $ | 146,080 | $ | 619,531 | $ | 628,622 | $ | 405,924 | ||||||||||
Total assets 4 | $ | 4,661,424 | $ | 4,054,042 | $ | 2,812,844 | $ | 2,785,749 | $ | 2,476,879 | ||||||||||
Return on assets 4 | 15.6% | 10.4% | 11.9% | 9.9% | 12.5% | |||||||||||||||
Net cash provided by operating activities | $ | 1,274,848 | $ | 607,294 | $ | 585,986 | $ | 499,704 | $ | 524,709 | ||||||||||
Capital expenditures | $ | 169,513 | $ | 186,276 | $ | 190,102 | $ | 189,712 | $ | 197,414 | ||||||||||
Long-term debt and other long-term liabilities 4 | $ | 1,141,627 | $ | 1,180,968 | $ | 380,944 | $ | 372,226 | $ | 71,215 | ||||||||||
Stockholders’ equity | $ | 1,651,185 | $ | 1,235,860 | $ | 1,155,714 | $ | 1,203,566 | $ | 1,248,220 | ||||||||||
Stockholders’ equity per share (book value) | $ | 21.63 | $ | 16.02 | $ | 14.66 | $ | 14.37 | $ | 14.29 | ||||||||||
Return on equity | 47.2% | 29.8% | 28.3% | 21.2% | 25.0% | |||||||||||||||
Annual dividends declared per share | $ | 2.02 | $ | 1.92 | $ | 1.72 | $ | 1.56 | $ | 1.48 | ||||||||||
Number of year-end | 581 | 614 | 625 | 631 | 629 | |||||||||||||||
Store selling square footage at year-end | 3,975,000 | 4,129,000 | 4,105,000 | 4,019,000 | 3,951,000 | |||||||||||||||
Store leased square footage at year-end | 6,301,000 | 6,558,000 | 6,557,000 | 6,451,000 | 6,359,000 |
1 | In fiscal 2018, we adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. Amounts reported for fiscal 2017 and fiscal 2016 have not been adjusted, and continue to |
2 | Comparable brand revenue is calculated on a 52-week to52-week basis, with the exception of 53-week to53-week basis. See definition of comparable brand revenue |
3 | Operating margin is defined as operating income as a percent of net |
4 | In fiscal 2019, we adopted ASU 2016-02, Leases, as of the
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ITEM 7. |
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Fiscal 2019 | Fiscal 2018 | |||||||||||||||
Store Count | Avg. LSF Per Store | Store Count | Avg. LSF Per Store | |||||||||||||
Williams Sonoma | 211 | 6,900 | 220 | 6,900 | ||||||||||||
Pottery Barn | 201 | 14,400 | 205 | 14,200 | ||||||||||||
West Elm | 118 | 13,100 | 112 | 13,100 | ||||||||||||
Pottery Barn Kids | 74 | 7,700 | 78 | 7,500 | ||||||||||||
Rejuvenation | 10 | 8,500 | 10 | 8,500 | ||||||||||||
Total | 614 | 10,700 | 625 | 10,500 |
In thousands | Fiscal 2020 | Fiscal 2019 | ||||||
Pottery Barn | $ | 2,526,241 | $ | 2,214,397 | ||||
West Elm | 1,682,254 | 1,466,537 | ||||||
Williams Sonoma | 1,242,271 | 1,032,368 | ||||||
Pottery Barn Kids and Teen | 1,042,531 | 908,561 | ||||||
Other 1 | 289,892 | 276,145 | ||||||
Total | $ | 6,783,189 | $ | 5,898,008 |
|
Comparable brand revenue growth | Fiscal 2020 | Fiscal 2019 | ||||||
Pottery Barn | 15.2 | % | 4.1 | % | ||||
West Elm | 15.2 | 14.4 | ||||||
Williams Sonoma | 23.8 | 0.4 | ||||||
Pottery Barn Kids and Teen | 16.6 | 4.5 | ||||||
Total 1 | 17.0 | % | 6.0 | % |
1 | Total comparable brand revenue growth includes the results of Rejuvenation and Mark and Graham. |
Fiscal 2020 | 1 | Fiscal 2019 | ||||||
Store count – beginning of year | 614 | 625 | ||||||
Store openings | 10 | 14 | ||||||
Store closings | (43 | ) | (25 | ) | ||||
Store count – end of year | 581 | 614 | ||||||
Store selling square footage at year-end | 3,975,000 | 4,129,000 | ||||||
Store leased square footage (“LSF”) at year-end | 6,301,000 | 6,558,000 |
1 | Store count at the end of the year for fiscal 2020 includes stores temporarily closed due to Store count data excludes temporary closuresand re-openings of our stores dueto COVID-19. |
Fiscal 2020 | Fiscal 2019 | |||||||||||||||
Store Count | Avg. LSF Per Store | Store Count | Avg. LSF Per Store | |||||||||||||
Williams Sonoma | 198 | 6,800 | 211 | 6,900 | ||||||||||||
Pottery Barn | 195 | 14,600 | 201 | 14,400 | ||||||||||||
West Elm | 121 | 13,100 | 118 | 13,100 | ||||||||||||
Pottery Barn Kids | 57 | 7,800 | 74 | 7,700 | ||||||||||||
Rejuvenation | 10 | 8,500 | 10 | 8,500 | ||||||||||||
Total | 581 | 10,800 | 614 | 10,700 |
In thousands | Fiscal 2020 | % Net Revenues | Fiscal 2019 | % Net Revenues | ||||||||||||
Cost of goods sold 1 | $ | 4,146,920 | 61.1% | $ | 3,758,916 | 63.7% |
1 | Includes occupancy expenses of $696.3 million and $710.5 million fiscal 2020 and fiscal 2019, respectively. |
In thousands | Fiscal 2019 (52 weeks) | % Net Revenues | Fiscal 2018 (53 weeks) | % Net Revenues | ||||||||||||
Selling, general and administrative expenses | $ | 1,673,218 | 28.4% | $ | 1,665,060 | 29.4% |
In thousands | Fiscal 2020 | % Net Revenues | Fiscal 2019 | % Net Revenues | ||||||||||||
Selling, general and administrative expenses | $ | 1,725,572 | 25.4% | $ | 1,673,218 | 28.4% |
Payments Due by Period 1 | ||||||||||||||||||||
In thousands | Fiscal 2020 | Fiscal 2021 to Fiscal 2023 | Fiscal 2024 to Fiscal 2025 | Thereafter | Total | |||||||||||||||
Current debt 2 | $ | 300,000 | $ | — | $ | — | $ | — | $ | 300,000 | ||||||||||
Interest | 9,634 | — | — | — | 9,634 | |||||||||||||||
Operating leases 3 | 281,995 | 637,867 | 284,461 | 333,413 | 1,537,736 | |||||||||||||||
Purchase obligations 4 | 857,106 | 28,420 | 83 | — | 885,609 | |||||||||||||||
Total | $ | 1,448,735 | $ | 666,287 | $ | 284,544 | $ | 333,413 | $ | 2,732,979 |
Payments Due by Period 1 | ||||||||||||||||||||
In thousands | Fiscal 2021 | Fiscal 2022 to Fiscal 2024 | Fiscal 2025 to Fiscal 2026 | Thereafter | Total | |||||||||||||||
Current debt 2 | $ | 300,000 | $ | — | $ | — | $ | — | $ | 300,000 | ||||||||||
Interest | 542 | — | — | — | 542 | |||||||||||||||
Operating leases 3 | 267,760 | 605,121 | 263,192 | 291,356 | 1,427,429 | |||||||||||||||
Purchase obligations 4 | 1,350,121 | 22,456 | — | — | 1,372,577 | |||||||||||||||
Total | $ | 1,918,423 | $ | 627,577 | $ | 263,192 | $ | 291,356 | $ | 3,100,548 |
1 | This table excludes |
2 | Current debt consists of term loan borrowings under our credit |
3 | Projected undiscounted payments include only those amounts that are fixed and determinable as of the reporting date. See Note E to our Consolidated Financial Statements for discussion of our operating leases. |
4 | Represents estimated commitments at year-end to purchase inventory and other goods and services in the normal course of business to meet operational requirements. |
Amount of Outstanding Commitment Expiration by Period 1 | ||||||||||||||||||||
In thousands | Fiscal 2020 | Fiscal 2021 to Fiscal 2023 | Fiscal 2024 to Fiscal 2025 | Thereafter | Total | |||||||||||||||
Standby letters of credit | $ | 12,187 | $ | — | $ | — | $ | — | $ | 12,187 | ||||||||||
Letter of credit facilities | 6,462 | — | — | — | 6,462 | |||||||||||||||
Total | $ | 18,649 | $ | — | $ | — | $ | — | $ | 18,649 |
Amount of Outstanding Commitment Expiration by Period 1 | ||||||||||||||||||||
In thousands | Fiscal 2021 | Fiscal 2022 to Fiscal 2024 | Fiscal 2025 to Fiscal 2026 | Thereafter | Total | |||||||||||||||
Standby letters of credit | $ | 12,609 | $ | — | $ | — | $ | — | $ | 12,609 | ||||||||||
Letter of credit facilities | 3,843 | — | — | — | 3,843 | |||||||||||||||
Total | $ | 16,452 | $ | — | $ | — | $ | — | $ | 16,452 |
1 | See Note C to our Consolidated Financial Statements for discussion of our borrowing arrangements. |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
In thousands, except per share amounts | Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | Fiscal 2017 (52 weeks) | |||||||||
Net revenues | $ | 5,898,008 | $ | 5,671,593 | $ | 5,292,359 | ||||||
Cost of goods sold | 3,758,916 | 3,570,580 | 3,360,648 | |||||||||
Gross profit | 2,139,092 | 2,101,013 | 1,931,711 | |||||||||
Selling, general and administrative expenses | 1,673,218 | 1,665,060 | 1,477,900 | |||||||||
Operating income | 465,874 | 435,953 | 453,811 | |||||||||
Interest (income) expense, net | 8,853 | 6,706 | 1,372 | |||||||||
Earnings before income taxes | 457,021 | 429,247 | 452,439 | |||||||||
Income taxes | 100,959 | 95,563 | 192,894 | |||||||||
Net earnings | $ | 356,062 | $ | 333,684 | $ | 259,545 | ||||||
Basic earnings per share | $ | 4.56 | $ | 4.10 | $ | 3.03 | ||||||
Diluted earnings per share | $ | 4.49 | $ | 4.05 | $ | 3.02 | ||||||
Shares used in calculation of earnings per share: | ||||||||||||
Basic | 78,108 | 81,420 | 85,592 | |||||||||
Diluted | 79,225 | 82,340 | 86,080 |
In thousands, except per share amounts | Fiscal 2020 (52 weeks) | Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | |||||||||
Net revenues | $ | 6,783,189 | $ | 5,898,008 | $ | 5,671,593 | ||||||
Cost of goods sold | 4,146,920 | 3,758,916 | 3,570,580 | |||||||||
Gross profit | 2,636,269 | 2,139,092 | 2,101,013 | |||||||||
Selling, general and administrative expenses | 1,725,572 | 1,673,218 | 1,665,060 | |||||||||
Operating income | 910,697 | 465,874 | 435,953 | |||||||||
Interest expense, net | 16,231 | 8,853 | 6,706 | |||||||||
Earnings before income taxes | 894,466 | 457,021 | 429,247 | |||||||||
Income taxes | 213,752 | 100,959 | 95,563 | |||||||||
Net earnings | $ | 680,714 | $ | 356,062 | $ | 333,684 | ||||||
Basic earnings per share | $ | 8.81 | $ | 4.56 | $ | 4.10 | ||||||
Diluted earnings per share | $ | 8.61 | $ | 4.49 | $ | 4.05 | ||||||
Shares used in calculation of earnings per share: | ||||||||||||
Basic | 77,260 | 78,108 | 81,420 | |||||||||
Diluted | 79,055 | 79,225 | 82,340 |
In thousands | Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | Fiscal 2017 (52 weeks) | |||||||||
Net earnings | $ | 356,062 | $ | 333,684 | $ | 259,545 | ||||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation adjustments | (3,334 | ) | (5,032 | ) | 3,730 | |||||||
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $195, $390 and $(259) | 163 | 1,098 | (715 | ) | ||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $261, $122 and $(38) | (343 | ) | (357 | ) | 106 | |||||||
Comprehensive income | $ | 352,548 | $ | 329,393 | $ | 262,666 |
In thousands | Fiscal 2020 (52 weeks) | Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | |||||||||
Net earnings | $ 680,714 | $ 356,062 | $ 333,684 | |||||||||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation adjustments | 8,195 | (3,334 | ) | (5,032 | ) | |||||||
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $(113), $195 and $390 | (315 | ) | 163 | 1,098 | ||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $149, $261 and $122 | (410 | ) | (343 | ) | (357 | ) | ||||||
Comprehensive income | $ 688,184 | $ 352,548 | $ 329,393 |
In thousands, except per share amounts | Feb. 2, 2020 | Feb. 3, 2019 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 432,162 | $ | 338,954 | ||||
Accounts receivable, net | 111,737 | 107,102 | ||||||
Merchandise inventories, net | 1,100,544 | 1,124,992 | ||||||
Prepaid expenses | 90,426 | 101,356 | ||||||
Other current assets | 20,766 | 21,939 | ||||||
Total current assets | 1,755,635 | 1,694,343 | ||||||
Property and equipment, net | 929,038 | 929,635 | ||||||
Operating lease right-of-use assets | 1,166,383 | — | ||||||
Deferred income taxes, net | 47,977 | 44,055 | ||||||
Goodwill | 85,343 | 85,382 | ||||||
Other long-term assets, net | 69,666 | 59,429 | ||||||
Total assets | $ | 4,054,042 | $ | 2,812,844 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 521,235 | $ | 526,702 | ||||
Accrued expenses | 175,003 | 163,559 | ||||||
Gift card and other deferred revenue | 289,613 | 290,445 | ||||||
Income taxes payable | 22,501 | 21,461 | ||||||
Current debt | 299,818 | — | ||||||
Operating lease liabilities | 227,923 | — | ||||||
Other current liabilities | 73,462 | 72,645 | ||||||
Total current liabilities | 1,609,555 | 1,074,812 | ||||||
Deferred rent and lease incentives | 27,659 | 201,374 | ||||||
Long-term debt | — | 299,620 | ||||||
Long-term operating lease liabilities | 1,094,579 | — | ||||||
Other long-term liabilities | 86,389 | 81,324 | ||||||
Total liabilities | 2,818,182 | 1,657,130 | ||||||
Commitments and contingencies – See Note I | ||||||||
Stockholders’ equity | ||||||||
Preferred stock: $.01 par value; 7,500 shares authorized; NaN issued | — | — | ||||||
Common stock: $.01 par value; 253,125 shares authorized; 77,137 and 78,813 shares issued and outstanding at February 2, 2020 and February 3, 2019, respectively | 772 | 789 | ||||||
Additional paid-in capital | 605,822 | 581,900 | ||||||
Retained earnings | 644,794 | 584,333 | ||||||
Accumulated other comprehensive loss | (14,587 | ) | (11,073 | ) | ||||
Treasury stock – at cost: 14 and 2 shares as of February 2, 2020 and February 3, 2019, respectively | (941 | ) | (235 | ) | ||||
Total stockholders’ equity | 1,235,860 | 1,155,714 | ||||||
Total liabilities and stockholders’ equity | $ | 4,054,042 | $ | 2,812,844 |
In thousands, except per share amounts | Jan. 31, 2021 | Feb. 2, 2020 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 1,200,337 | $ | 432,162 | ||||
Accounts receivable, net | 143,728 | 111,737 | ||||||
Merchandise inventories, net | 1,006,299 | 1,100,544 | ||||||
Prepaid expenses | 93,822 | 90,426 | ||||||
Other current assets | 22,894 | 20,766 | ||||||
Total current assets | 2,467,080 | 1,755,635 | ||||||
Property and equipment, net | 873,894 | 929,038 | ||||||
Operating lease right-of-use | 1,086,009 | 1,166,383 | ||||||
Deferred income taxes, net | 61,854 | 47,977 | ||||||
Goodwill | 85,446 | 85,343 | ||||||
Other long-term assets, net | 87,141 | 69,666 | ||||||
Total assets | $ | 4,661,424 | $ | 4,054,042 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 542,992 | $ | 521,235 | ||||
Accrued expenses | 267,592 | 175,003 | ||||||
Gift card and other deferred revenue | 373,164 | 289,613 | ||||||
Income taxes payable | 69,476 | 22,501 | ||||||
Current debt | 299,350 | 299,818 | ||||||
Operating lease liabilities | 209,754 | 227,923 | ||||||
Other current liabilities | 85,672 | 73,462 | ||||||
Total current liabilities | 1,848,000 | 1,609,555 | ||||||
Deferred lease incentives | 20,612 | 27,659 | ||||||
Long-term operating lease liabilities | 1,025,057 | 1,094,579 | ||||||
Other long-term liabilities | 116,570 | 86,389 | ||||||
Total liabilities | 3,010,239 | 2,818,182 | ||||||
Commitments and contingencies – See Note I | ||||||||
Stockholders’ equity | ||||||||
Preferred stock: $.01 par value; 7,500 shares authorized; 0ne issued | 0— | — | ||||||
Common stock: $.01 par value; 253,125 shares authorized; 76,340 and 77,137 shares issued and outstanding at January 31, 2021 and February 2, 2020, respectively | 764 | 772 | ||||||
Additional paid-in capital | 638,375 | 605,822 | ||||||
Retained earnings | 1,019,762 | 644,794 | ||||||
Accumulated other comprehensive loss | (7,117 | ) | (14,587 | ) | ||||
Treasury stock, at cost: 8 and 14 shares as of January 31, 2021 and February 2, 2020, respectively | (599 | ) | (941 | ) | ||||
Total stockholders’ equity | 1,651,185 | 1,235,860 | ||||||
Total liabilities and stockholders’ equity | $ | 4,661,424 | $ | 4,054,042 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||
In thousands | Shares | Amount | ||||||||||||||||||||||||||
Balance at January 29, 2017 | 87,325 | $ | 873 | $ | 556,928 | $ | 701,702 | $ | (9,903 | ) | $ | (1,380 | ) | $ | 1,248,220 | |||||||||||||
Net earnings | — | — | — | 259,545 | — | — | 259,545 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 3,730 | — | 3,730 | |||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (715 | ) | — | (715 | ) | |||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | 106 | — | 106 | |||||||||||||||||||||
Conversion/release of stock-based awards 1 | 452 | 5 | (17,810 | ) | — | — | (325 | ) | (18,130 | ) | ||||||||||||||||||
Repurchases of common stock | (4,051 | ) | (41 | ) | (18,518 | ) | (177,620 | ) | — | — | (196,179 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (554 | ) | (426 | ) | — | 980 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 42,768 | — | — | — | 42,768 | |||||||||||||||||||||
Dividends declared | — | — | — | (135,779 | ) | — | — | (135,779 | ) | |||||||||||||||||||
Balance at January 28, 2018 | 83,726 | 837 | 562,814 | 647,422 | (6,782 | ) | (725 | ) | 1,203,566 | |||||||||||||||||||
Net earnings | — | — | — | 333,684 | — | — | 333,684 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (5,032 | ) | — | (5,032 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 1,098 | — | 1,098 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (357 | ) | — | (357 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 460 | 5 | (14,149 | ) | — | — | (291 | ) | (14,435 | ) | ||||||||||||||||||
Repurchases of common stock | (5,373 | ) | (53 | ) | (25,775 | ) | (269,476 | ) | — | — | (295,304 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (418 | ) | (363 | ) | — | 781 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 59,428 | — | — | — | 59,428 | |||||||||||||||||||||
Dividends declared | — | — | — | (144,609 | ) | — | — | (144,609 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 2 | — | — | — | 17,675 | — | — | 17,675 | |||||||||||||||||||||
Balance at February 3, 2019 | 78,813 | 789 | 581,900 | 584,333 | (11,073 | ) | (235 | ) | 1,155,714 | |||||||||||||||||||
Net earnings | — | — | — | 356,062 | — | — | 356,062 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (3,334 | ) | — | (3,334 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 163 | — | 163 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (343 | ) | — | (343 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 649 | 6 | (27,624 | ) | — | — | (134 | ) | (27,752 | ) | ||||||||||||||||||
Repurchases of common stock | (2,325 | ) | (23 | ) | (11,658 | ) | (136,195 | ) | — | (958 | ) | (148,834 | ) | |||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (386 | ) | — | — | 386 | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 63,590 | — | — | — | 63,590 | |||||||||||||||||||||
Dividends declared | — | — | — | (156,103 | ) | — | — | (156,103 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 3 | — | — | — | (3,303 | ) | — | — | (3,303 | ) | |||||||||||||||||||
Balance at February 2, 2020 | 77,137 | $ | 772 | $ | 605,822 | $ | 644,794 | $ | (14,587 | ) | $ | (941 | ) | $ | 1,235,860 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||
In thousands | Shares | Amount | ||||||||||||||||||||||||||
Balance at January 28, 2018 | 83,726 | $ | 837 | $ | 562,814 | $ | 647,422 | $ | (6,782) | $ | (725 | ) | $ | 1,203,566 | ||||||||||||||
Net earnings | — | — | — | 333,684 | — | — | 333,684 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (5,032 | ) | — | (5,032 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 1,098 | — | 1,098 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (357 | ) | — | (357 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 460 | 5 | (14,149 | ) | — | — | (291 | ) | (14,435 | ) | ||||||||||||||||||
Repurchases of common stock | (5,373 | ) | (53 | ) | (25,775 | ) | (269,476 | ) | — | — | (295,304 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (418 | ) | (363 | ) | — | 781 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 59,428 | — | — | — | 59,428 | |||||||||||||||||||||
Dividends declared | — | — | — | (144,609 | ) | — | — | (144,609 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 2 | — | — | — | 17,675 | — | — | 17,675 | |||||||||||||||||||||
Balance at February 3, 2019 | 78,813 | 789 | 581,900 | 584,333 | (11,073 | ) | (235 | ) | 1,155,714 | |||||||||||||||||||
Net earnings | — | — | — | 356,062 | — | — | 356,062 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (3,334 | ) | — | (3,334 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 163 | — | 163 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (343 | ) | — | (343 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 649 | 6 | (27,624 | ) | — | — | (134 | ) | (27,752 | ) | ||||||||||||||||||
Repurchases of common stock | (2,325 | ) | (23 | ) | (11,658 | ) | (136,195 | ) | — | (958 | ) | (148,834 | ) | |||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (386 | ) | — | — | 386 | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 63,590 | — | — | — | 63,590 | |||||||||||||||||||||
Dividends declared | — | — | — | (156,103 | ) | — | — | (156,103 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 3 | — | — | — | (3,303 | ) | — | — | (3,303 | ) | |||||||||||||||||||
Balance at February 2, 2020 | 77,137 | 772 | 605,822 | 644,794 | (14,587 | ) | (941 | ) | 1,235,860 | |||||||||||||||||||
Net earnings | — | — | — | 680,714 | — | — | 680,714 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 8,195 | — | 8,195 | |||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (315 | ) | — | (315 | ) | |||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (410 | ) | — | (410 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 699 | 7 | (31,565 | ) | — | — | (171 | ) | (31,729 | ) | ||||||||||||||||||
Repurchases of common stock | (1,496 | ) | (15 | ) | (7,569 | ) | (142,416 | ) | — | — | (150,000 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (499 | ) | (14 | ) | — | 513 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 72,186 | — | — | — | 72,186 | |||||||||||||||||||||
Dividends declared | — | — | — | (163,316 | ) | — | — | (163,316 | ) | |||||||||||||||||||
Balance at January 31, 2021 | 76,340 | $ | 764 | $ | 638,375 | $ | 1,019,762 | $ | (7,117 | ) | $ | (599 | ) | $ | 1,651,185 |
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. |
In thousands | Fiscal 2019 (52 Weeks) | Fiscal 2018 (53 Weeks) | Fiscal 2017 (52 Weeks) | |||||||||
Cash flows from operating activities: | ||||||||||||
Net earnings | $ | 356,062 | $ | 333,684 | $ | 259,545 | ||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 187,759 | 188,808 | 183,077 | |||||||||
Loss on disposal/impairment of assets | 1,755 | 10,209 | 1,889 | |||||||||
Amortization of deferred lease incentives | (7,714 | ) | (26,199 | ) | (25,372 | ) | ||||||
Non-cash lease expense | 215,810 | — | — | |||||||||
Deferred income taxes | (2,557 | ) | 23,639 | 63,381 | ||||||||
Stock-based compensation expense | 64,163 | 59,802 | 42,988 | |||||||||
Other | (26 | ) | (579 | ) | (135 | ) | ||||||
Changes in: | ||||||||||||
Accounts receivable | (5,034 | ) | (15,329 | ) | 149 | |||||||
Merchandise inventories | 24,219 | (70,331 | ) | (80,235 | ) | |||||||
Prepaid catalog expenses | — | — | (1,019 | ) | ||||||||
Prepaid expenses and other assets | (3,189 | ) | (54,691 | ) | (15,475 | ) | ||||||
Accounts payable | (11,051 | ) | 62,377 | 2,549 | ||||||||
Accrued expenses and other liabilities | 13,259 | 45,976 | 9,597 | |||||||||
Gift card and other deferred revenue | (640 | ) | 38,899 | (3,002 | ) | |||||||
Deferred rent and lease incentives | — | 24,929 | 28,226 | |||||||||
Operating lease liabilities | (226,257 | ) | — | — | ||||||||
Income taxes payable | 735 | (35,208 | ) | 33,541 | ||||||||
Net cash provided by operating activities | 607,294 | 585,986 | 499,704 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (186,276 | ) | (190,102 | ) | (189,712 | ) | ||||||
Acquisition of Outward, Inc., net of cash received | — | — | (80,528 | ) | ||||||||
Other | 728 | 2,203 | 480 | |||||||||
Net cash used in investing activities | (185,548 | ) | (187,899 | ) | (269,760 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Payment of dividends | (150,640 | ) | (140,325 | ) | (135,010 | ) | ||||||
Repurchases of common stock | (148,834 | ) | (295,304 | ) | (196,179 | ) | ||||||
Borrowings under revolving line of credit | 100,000 | 60,000 | 170,000 | |||||||||
Repayments of borrowings under revolving line of credit | (100,000 | ) | (60,000 | ) | (170,000 | ) | ||||||
Tax withholdings related to stock-based awards | (27,752 | ) | (14,437 | ) | (18,130 | ) | ||||||
Proceeds from issuance of long-term debt | — | — | 300,000 | |||||||||
Debt issuance costs | — | — | (1,191 | ) | ||||||||
Other | — | — | (1,197 | ) | ||||||||
Net cash used in financing activities | (327,226 | ) | (450,066 | ) | (51,707 | ) | ||||||
Effect of exchange rates on cash and cash equivalents | (1,312 | ) | 797 | (1,814 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 93,208 | (51,182 | ) | 176,423 | ||||||||
Cash and cash equivalents at beginning of year | 338,954 | 390,136 | 213,713 | |||||||||
Cash and cash equivalents at end of year | $ | 432,162 | $ | 338,954 | $ | 390,136 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid during the year for interest | $ | 12,682 | $ | 11,424 | $ | 2,915 | ||||||
Cash paid during the year for income taxes, net of refunds | $ | 113,344 | $ | 107,951 | $ | 99,062 | ||||||
Non-cash investing activities: | ||||||||||||
Purchases of property and equipment not yet paid for at end of year | $ | 2,386 | $ | 2,773 | $ | 1,257 |
In thousands | Fiscal 2020 (52 Weeks) | Fiscal 2019 (52 Weeks) | Fiscal 2018 (53 Weeks) | |||||||||
Cash flows from operating activities: | ||||||||||||
Net earnings | $ | 680,714 | $ | 356,062 | $ | 333,684 | ||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 188,655 | 187,759 | 188,808 | |||||||||
Loss on disposal/impairment of assets | 32,365 | 1,755 | 10,209 | |||||||||
Amortization of deferred lease incentives | (5,783 | ) | (7,714 | ) | (26,199 | ) | ||||||
Non-cash lease expense | 216,368 | 215,810 | — | |||||||||
Deferred income taxes | (13,061 | ) | (2,557 | ) | 23,639 | |||||||
Stock-based compensation expense | 73,185 | 64,163 | 59,802 | |||||||||
Other | (264 | ) | (26 | ) | (579 | ) | ||||||
Changes in: | ||||||||||||
Accounts receivable | (31,503 | ) | (5,034 | ) | (15,329 | ) | ||||||
Merchandise inventories | 99,144 | 24,219 | (70,331 | ) | ||||||||
Prepaid expenses and other assets | (16,388 | ) | (3,189 | ) | (54,691 | ) | ||||||
Accounts payable | 25,489 | (11,051 | ) | 62,377 | ||||||||
Accrued expenses and other liabilities | 129,142 | 13,259 | 45,976 | |||||||||
Gift card and other deferred revenue | 82,841 | (640 | ) | 38,899 | ||||||||
Deferred rent and lease incentives | 0 | 0 | 24,929 | |||||||||
Operating lease liabilities | (232,989 | ) | (226,257 | ) | — | |||||||
Income taxes payable | 46,933 | 735 | (35,208 | ) | ||||||||
Net cash provided by operating activities | 1,274,848 | 607,294 | 585,986 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (169,513 | ) | (186,276 | ) | (190,102 | ) | ||||||
Other | 629 | 728 | 2,203 | |||||||||
Net cash used in investing activities | (168,884 | ) | (185,548 | ) | (187,899 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Borrowings under revolving line of credit | 487,823 | 100,000 | 60,000 | |||||||||
Repayments of borrowings under revolving line of credit | (487,823 | ) | (100,000 | ) | (60,000 | ) | ||||||
Payment of dividends | (157,645 | ) | (150,640 | ) | (140,325 | ) | ||||||
Repurchases of common stock | (150,000 | ) | (148,834 | ) | (295,304 | ) | ||||||
Tax withholdings related to stock-based awards | (31,729 | ) | (27,752 | ) | (14,437 | ) | ||||||
Debt issuance costs | (3,645 | ) | — | 0 | ||||||||
Net cash used in financing activities | (343,019 | ) | (327,226 | ) | (450,066 | ) | ||||||
Effect of exchange rates on cash and cash equivalents | 5,230 | (1,312 | ) | 797 | ||||||||
Net increase (decrease) in cash and cash equivalents | 768,175 | 93,208 | (51,182 | ) | ||||||||
Cash and cash equivalents at beginning of year | 432,162 | 338,954 | 390,136 | |||||||||
Cash and cash equivalents at end of year | $ | 1,200,337 | $ | 432,162 | $ | 338,954 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid during the year for interest | $ | 18,346 | $ | 12,682 | $ | 11,424 | ||||||
Cash paid during the year for income taxes, net of refunds | $ | 162,842 | $ | 113,344 | $ | 107,951 | ||||||
Non-cash investing activities: | ||||||||||||
Purchases of property and equipment not yet paid for at end of year | $ | 753 | $ | 2,386 | $ | 2,773 |
Leasehold improvements | Shorter of estimated useful life or lease term (generally 5 – 22 years) | |
Fixtures and equipment | 2 – 20 years | |
Buildings and building improvements | 10 – 40 years | |
Capitalized software | 2 – 10 years |
In thousands | Feb. 2, 2020 | Feb. 3, 2019 | ||||||
Leasehold improvements | $ | 946,880 | $ | 950,259 | ||||
Fixtures and equipment | 830,650 | 836,400 | ||||||
Capitalized software | 788,635 | 733,941 | ||||||
Land and buildings | 177,088 | 175,181 | ||||||
Corporate systems projects in progress | 62,059 | 39,416 | ||||||
Construction in progress 1 | 7,076 | 7,205 | ||||||
Total | 2,812,388 | 2,742,402 | ||||||
Accumulated depreciation | (1,883,350 | ) | (1,812,767 | ) | ||||
Property and equipment, net | $ | 929,038 | $ | 929,635 |
In thousands | Jan. 31, 2021 | Feb. 2, 2020 | ||||||
Leasehold improvements | $ | 896,865 | $ | 946,880 | ||||
Capitalized software | 862,429 | 788,635 | ||||||
Fixtures and equipment | 828,344 | 830,650 | ||||||
Land and buildings | 178,586 | 177,088 | ||||||
Corporate systems projects in progress | 58,599 | 62,059 | ||||||
Construction in progress 1 | 3,046 | 7,076 | ||||||
Total | 2,827,869 | 2,812,388 | ||||||
Accumulated depreciation | (1,953,975 | ) | (1,883,350 | ) | ||||
Property and equipment, net | $ | 873,894 | $ | 929,038 |
1 | Construction in progress primarily consists of leasehold improvements and furniture and fixtures related to new, expanded or remodeled retail stores where construction had not been completed as of year-end. |
Dollars in thousands | Fiscal 2019 | Fiscal 2018 | Fiscal 2017 | |||||||||
United States | $ | 353,215 | $ | 333,594 | $ | 379,000 | ||||||
Foreign | 103,806 | 95,653 | 73,439 | |||||||||
Total | $ | 457,021 | $ | 429,247 | $ | 452,439 |
In thousands | Fiscal 2020 (52 weeks) | Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | ||||||||||
United States | $ | 773,317 | $ | 353,215 | $ | 333,594 | |||||||
Foreign | 121,149 | 103,806 | 95,653 | ||||||||||
Total | $ | 894,466 | $ | 457,021 | $ | 429,247 |
Dollars in thousands | Fiscal 2019 | Fiscal 2018 | Fiscal 2017 | |||||||||
Current | ||||||||||||
Federal | $ | 76,873 | $ | 43,745 | $ | 97,202 | ||||||
State | 14,205 | 15,357 | 19,552 | |||||||||
Foreign | 12,438 | 12,822 | 12,759 | |||||||||
Total Current | $ | 103,516 | $ | 71,924 | $ | 129,513 | ||||||
Deferred | ||||||||||||
Federal | $ | (606 | ) | $ | 23,507 | $ | 62,893 | |||||
State | (870 | ) | 1,562 | 460 | ||||||||
Foreign | (1,081 | ) | (1,430 | ) | 28 | |||||||
Total Deferred | $ | (2,557 | ) | $ | 23,639 | $ | 63,381 | |||||
Total provision | $ | 100,959 | $ | 95,563 | $ | 192,894 |
In thousands | Fiscal 2020 (52 weeks) | Fiscal 2019 (52 weeks) | Fiscal (53 | |||||||||
Current | ||||||||||||
Federal | $ | 171,821 | $ | 76,873 | $ | 43,745 | ||||||
State | 39,498 | 14,205 | 15,357 | |||||||||
Foreign | 15,494 | 12,438 | 12,822 | |||||||||
Total Current | $ | 226,813 | $ | 103,516 | $ | 71,924 | ||||||
Deferred | ||||||||||||
Federal | $ | (7,575 | ) | $ | (606 | ) | $ | 23,507 | ||||
State | (5,997 | ) | (870 | ) | 1,562 | |||||||
Foreign | 511 | (1,081 | ) | (1,430 | ) | |||||||
Total Deferred | $ | (13,061 | ) | $ | (2,557 | ) | $ | 23,639 | ||||
Total provision | $ | 213,752 | $ | 100,959 | $ | 95,563 |
Fiscal 2019 | Fiscal 2018 | Fiscal 2017 | ||||||||||
Federal income taxes at the statutory rate | 21.0% | 21.0% | 33.9% | |||||||||
Re-measurement of deferred tax assets and liabilities | — | (2.2% | ) | 6.7% | ||||||||
Transition tax | — | (0.6% | ) | 2.9% | ||||||||
State income tax rate | 2.9% | 3.8% | 2.5% | |||||||||
Officer’s compensation under Sec.162(m) | 1.0% | — | — | |||||||||
Deferred true up | (1.3% | ) | — | — | ||||||||
Change in uncertain tax positions | 0.5% | 4.1% | (1.6% | ) | ||||||||
Rate differential | (1.8% | ) | (2.3% | ) | (2.9% | ) | ||||||
Research and development credits | (0.7% | ) | (2.1% | ) | — | |||||||
Other | 0.5% | 0.6% | 1.1% | |||||||||
Total | 22.1% | 22.3% | 42.6% |
Fiscal 2020 (52 weeks) | Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | ||||||||||||
Federal income taxes at the statutory rate | 21.0% | 21.0% | 21.0% | |||||||||||
Re-measurement of deferred tax assets and liabilities | — | — | (2.2% | ) | ||||||||||
Transition tax | — | — | (0.6% | ) | ||||||||||
State income tax rate | 3.9% | 2.9% | 3.8% | |||||||||||
Officer’s compensation under Sec.162(m) | 1.1% | 1.0% | — | |||||||||||
Change in uncertain tax positions | 0.2% | 0.5% | 4.1% | |||||||||||
Deferred true u p | (0.6% | ) | (1.3% | ) | — | |||||||||
Rate differential | (1.1% | ) | (1.8% | ) | (2.3% | ) | ||||||||
Research and development credits | (0.2% | ) | (0.7% | ) | (2.1% | ) | ||||||||
Other | (0.4% | ) | 0.5% | 0.6% | ||||||||||
Total | 23.9% | 22.1% | 22.3% |
Deferred tax asset (liabilities), Dollars in thousands | Fiscal 2019 | Fiscal 2018 | ||||||
Operating lease liabilities | $ | 347,693 | $ | — | ||||
Merchandise inventories | 22,311 | 18,703 | ||||||
Customer deposits | 19,520 | 14,345 | ||||||
Compensation | 14,350 | 11,251 | ||||||
Stock-based compensation | 9,860 | 14,281 | ||||||
Accrued liabilities | 8,440 | 13,470 | ||||||
State taxes | 7,546 | 7,435 | ||||||
Executive deferred compensation | 7,543 | 5,739 | ||||||
Federal and state net operating loss | 3,443 | 4,223 | ||||||
Deferred rent | — | 18,942 | ||||||
Operating lease right-of-use assets | (309,801 | ) | — | |||||
Deferred lease incentives | (46,701 | ) | (26,032 | ) | ||||
Property and equipment | (37,309 | ) | (31,557 | ) | ||||
Prepaid catalog expenses | (394 | ) | (936 | ) | ||||
Other | 2,369 | (4,797 | ) | |||||
Valuation allowance | (3,648 | ) | (3,542 | ) | ||||
Total deferred tax assets, net | $ | 45,222 | $ | 41,525 |
In thousands | Jan. 31, | Feb. 2, | ||||||
Deferred tax asset (liabilities ) | ||||||||
Operating lease liabilities | $ | 319,599 | $ | 347,693 | ||||
Compensatio n | 20,852 | 14,350 | ||||||
Merchandise inventories | 20,631 | 22,311 | ||||||
Gift cards | 19,345 | 19,520 | ||||||
Accrued liabilities | 13,451 | 8,440 | ||||||
Stock-based compensation | 9,926 | 9,860 | ||||||
Loyalty rewards | 9,609 | 5,252 | ||||||
Executive deferred compensation | 8,647 | 7,543 | ||||||
State taxe s | 7,460 | 7,546 | ||||||
Federal and state net operating loss | 2,609 | 3,443 | ||||||
Operating lease right-of-use | (283,856 | ) | (309,801 | ) | ||||
Deferred lease incentives | (31,672 | ) | (46,701 | ) | ||||
Property and equipment | (54,724 | ) | (37,309 | ) | ||||
Other | (317 | ) | (3,277 | ) | ||||
Valuation allowance | (2,819 | ) | (3,648 | ) | ||||
Total deferred tax assets, net | $ | 58,741 | $ | 45,222 |
Dollars in thousands | Fiscal 2019 | Fiscal 2018 | Fiscal 2017 | |||||||||
Beginning Balance | $ | 35,209 | $ | 18,051 | $ | 25,864 | ||||||
Increases related to current year tax positions | 3,438 | 4,694 | 3,345 | |||||||||
Increases for tax positions for prior years | 1,405 | 14,905 | 808 | |||||||||
Decrease for tax positions for prior years | (308 | ) | (1,279 | ) | (10,610 | ) | ||||||
Settlements | — | (376 | ) | — | ||||||||
Lapse in statute of limitations | (3,106 | ) | (786 | ) | (1,356 | ) | ||||||
Ending Balance | $ | 36,638 | $ | 35,209 | $ | 18,051 |
In thousands | Fiscal 2020 | Fiscal 2019 | Fiscal 2018 | |||||||||
Beginning Balance | $ | 36,638 | $ | 35,209 | $ | 18,051 | ||||||
Increases related to current year tax positions | 4,593 | 3,438 | 4,694 | |||||||||
Increases for tax positions for prior years | 848 | 1,405 | 14,905 | |||||||||
Decrease for tax positions for prior years | (437 | ) | (308 | ) | (1,279 | ) | ||||||
Settlements | — | — | (376 | ) | ||||||||
Lapse in statute of limitations | (2,946 | ) | (3,106 | ) | (786 | ) | ||||||
Ending Balance | $ | 38,696 | $ | 36,638 | $ | 35,209 |
I n | Fiscal 2019 (52 Weeks) | |||
Operating lease costs | $ | 267,883 | ||
Variable lease costs | 129,018 | |||
Total lease costs | $ | 396,901 |
In thousands | Fiscal 2020 | Fiscal 2019 | ||||||
Operating lease costs | $ | 263,126 | $ | 267,883 | ||||
Variable lease costs | 107,477 | 129,018 | ||||||
Total lease costs | $ | 370,603 | $ | 396,901 |
In thousands | Fiscal 2019 (52 Weeks) | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 285,678 | ||
Net additions to right-of-use assets | $ | 150,401 | ||
In thousands | Fiscal 2020 | Fiscal 2019 | ||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 285,906 | $ | 285,678 | ||||
Net additions to right-of-use | $ | 135,457 | $ | 150,401 |
Fiscal 2020 | Fiscal 2019 | |||||||
Weighted average remaining lease term (years) | 7.0 | 7.3 | ||||||
Weighted average incremental borrowing rate | 3.6% | 3.8% |
In thousands | ||||
Fiscal 2020 | $ | 281,995 | ||
Fiscal 2021 | 246,588 | |||
Fiscal 2022 | 212,629 | |||
Fiscal 2023 | 178,650 | |||
Fiscal 2024 | 154,594 | |||
Fiscal 2025 and thereafter | 463,280 | |||
Total lease payments | 1,537,736 | |||
Less interest | (215,234 | ) | ||
Total operating lease liabilities | 1,322,502 | |||
Less current operating lease liabilities | (227,923 | ) | ||
Total non-current operating lease liabilities | $ | 1,094,579 |
In thousands | ||||
Fiscal 2021 | $ | 267,760 | ||
Fiscal 2022 | 234,946 | |||
Fiscal 2023 | 198,107 | |||
Fiscal 2024 | 172,068 | |||
Fiscal 2025 | 148,427 | |||
Fiscal 2026 and thereafter | 406,121 | |||
Total lease payments | 1,427,429 | |||
Less: interest | (192,618 | ) | ||
Total operating lease liabilities | 1,234,811 | |||
Less: current operating lease liabilities | (209,754 | ) | ||
Total non-current operating lease liabilities | $ | 1,025,057 |
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 |
In thousands, except per share amounts | Net Earnings | Weighted Average Shares | Earnings Per Share | |||||||||
Fiscal 2019 (52 Weeks) | ||||||||||||
Basic | $ | 356,062 | 78,108 | $ | 4.56 | |||||||
Effect of dilutive stock-based awards | 1,117 | |||||||||||
Diluted | $ | 356,062 | 79,225 | $ | 4.49 | |||||||
Fiscal 2018 (53 Weeks) | ||||||||||||
Basic | $ | 333,684 | 81,420 | $ | 4.10 | |||||||
Effect of dilutive stock-based awards | 920 | |||||||||||
Diluted | $ | 333,684 | 82,340 | $ | 4.05 | |||||||
Fiscal 2017 (52 Weeks) | ||||||||||||
Basic | $ | 259,545 | 85,592 | $ | 3.03 | |||||||
Effect of dilutive stock-based awards | 488 | |||||||||||
Diluted | $ | 259,545 | 86,080 | $ | 3.02 |
In thousands, except per share amounts | Net Earnings | Weighted Average Shares | Earnings Per Share | |||||||||
Fiscal 2020 (52 Weeks) | ||||||||||||
Basic | $ | 680,714 | 77,260 | $ | 8.81 | |||||||
Effect of dilutive stock-based awards | 1,795 | |||||||||||
Diluted | $ | 680,714 | 79,055 | $ | 8.61 | |||||||
Fiscal 2019 (52 Weeks) | ||||||||||||
Basic | $ | 356,062 | 78,108 | $ | 4.56 | |||||||
Effect of dilutive stock-based awards | 1,117 | |||||||||||
Diluted | $ | 356,062 | 79,225 | $ | 4.49 | |||||||
Fiscal 2018 (53 Weeks) | ||||||||||||
Basic | $ | 333,684 | 81,420 | $ | 4.10 | |||||||
Effect of dilutive stock-based awards | 920 | |||||||||||
Diluted | $ | 333,684 | 82,340 | $ | 4.05 |
Shares | Weighted Average Grant Date Fair Value | Weighted Average Contractual Term Remaining (Years) | Intrinsic Value 1 | |||||||||||||
Balance at February 3, 2019 | 3,012,923 | $ | 52.88 | |||||||||||||
Granted | 1,066,337 | 58.27 | ||||||||||||||
Granted, with vesting subject to performance conditions | 240,515 | 57.77 | ||||||||||||||
Released 2 | (1,029,288 | ) | 55.94 | |||||||||||||
Cancelled | (406,293 | ) | 53.89 | |||||||||||||
Balance at February 2, 2020 | 2,884,194 | $ | 54.09 | 3.00 | $ | 202,124,000 | ||||||||||
Vested plus expected to vest at February 2, 2020 | 2,335,826 | $ | 54.04 | 3.16 | $ | 163,695,000 |
Shares | Weighted Average Grant Date Fair Value | Weighted Average Contractual Term Remaining (Years) | Intrinsic Value 1 | |||||||||||||
Balance at February 2, 2020 | 2,884,194 | $ | 54.09 | |||||||||||||
Granted | 1,145,610 | 51.67 | ||||||||||||||
Granted, with vesting subject to performance conditions | 267,000 | 93.17 | ||||||||||||||
Released 2 | (1,061,159 | ) | 53.96 | |||||||||||||
Cancelled | (116,761 | ) | 53.08 | |||||||||||||
Balance at January 31, 2021 | 3,118,884 | $ | 56.62 | 3.05 | $ | 402,087,000 | ||||||||||
Vested plus expected to vest at January 31, 2021 | 2,773,871 | $ | 56.61 | 3.42 | $ | 357,607,000 |
1 | Intrinsic value for outstanding and unvested restricted stock units is based on the market value of our common stock on the last business day of the fiscal year (or |
2 | Excludes |
Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | Fiscal 2017 (52 weeks) | ||||||||||
Weighted average grant date fair value per share of awards granted | $ | 58.18 | $ | 49.57 | $ | 52.76 | ||||||
Intrinsic value of awards released 1 | $ | 65,403,000 | $ | 34,213,000 | $ | 35,508,000 |
Fiscal 2020 (52 weeks) | Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | ||||||||||
Weighted average grant date fair value per share of awards granted | $ | 59.51 | $ | 58.18 | $ | 49.57 | ||||||
Intrinsic value of awards released 1 | $ | 74,853,000 | $ | 65,403,000 | $ | 34,213,000 |
1 | Intrinsic value for releases is based on the market value on the date of release. |
In thousands | Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | Fiscal 2017 (52 weeks) | Fiscal 2020 (52 weeks) | Fiscal 2019 (52 weeks) | Fiscal 2018 (53 weeks) | ||||||||||||||||||
Pottery Barn | $ | 2,214,397 | $ | 2,177,344 | $ | 2,066,302 | $ | 2,526,241 | $ | 2,214,397 | $ | 2,177,344 | ||||||||||||
West Elm | 1,466,537 | 1,292,928 | 1,114,339 | 1,682,254 | 1,466,537 | 1,292,928 | ||||||||||||||||||
Williams Sonoma | 1,032,368 | 1,056,125 | 1,022,434 | 1,242,271 | 1,032,368 | 1,056,125 | ||||||||||||||||||
Pottery Barn Kids and Teen | 908,561 | 895,762 | 860,468 | 1,042,531 | 908,561 | 895,762 | ||||||||||||||||||
Other 1 | 276,145 | 249,434 | 228,816 | |||||||||||||||||||||
Total 2 | $ | 5,898,008 | $ | 5,671,593 | $ | 5,292,359 | ||||||||||||||||||
Other1 | 289,892 | 276,145 | 249,434 | |||||||||||||||||||||
Total2 | $ | 6,783,189 | $ | 5,898,008 | $ | 5,671,593 |
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 $345.7 million, $365.6 million million for fiscal 2020, fiscal 2019 and fiscal 2018, |
In thousands | Feb. 2, 2020 1 | Feb. 3, 2019 1 | ||||||
U.S. | $ | 2,132,635 | $ | 1,068,196 | ||||
International | 165,772 | 50,305 | ||||||
Total | $ | 2,298,407 | $ | 1,118,501 |
In thousands | Jan. 31, 2021 | Feb. 2, 2020 | ||||||
U.S. | $ | 2,043,950 | $ | 2,132,635 | ||||
International | 150,394 | 165,772 | ||||||
Total | $ | 2,194,344 | $ | 2,298,407 |
In thousands | Feb. 2, 2020 | Feb. 3, 2019 | ||||||
Contracts designated as cash flow hedges | $ | 17,200 | $ | 16,600 | ||||
Contracts not designated as cash flow hedges | $ | — | $ | 5,300 |
In thousands | Jan. 31, 2021 | Feb. 2, 2020 | ||||||
Contracts designated as cash flow hedges | $ | 28,300 | $ | 17,200 |
Fiscal 2019 | Fiscal 2018 | Fiscal 2017 | ||||||||||||||||||||||
In thousands | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | ||||||||||||||||||
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | $ | 3,758,916 | $ | 1,673,218 | $ | 3,570,580 | $ | 1,665,060 | $ | 3,360,648 | $ | 1,477,900 | ||||||||||||
Gain (loss) recognized in income | ||||||||||||||||||||||||
Derivatives designated as cash flow hedges | $ | 604 | $ | — | $ | 478 | $ | 57 | $ | (144 | ) | $ | 88 | |||||||||||
Derivatives not designated as hedging instruments | $ | — | $ | 28 | $ | — | $ | 3,967 | $ | — | $ | (3,286 | ) |
Fiscal 2020 | Fiscal 2019 | Fiscal 2018 | ||||||||||||||||||||||
In thousands | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | ||||||||||||||||||
Line items presented in the Consolidated Statement s of Earnings in which the effects of derivatives are recorded | $ | 4,146,920 | $ | 1,725,572 | $ | 3,758,916 | $ | 1,673,218 | $ | 3,570,580 | $ | 1,665,060 | ||||||||||||
Gain (loss) recognized in income | ||||||||||||||||||||||||
Derivatives designated as cash flow hedges | $ | 562 | $ | — | $ | 604 | $ | — | $ | 478 | $ | 57 | ||||||||||||
Derivatives not designated as hedging instruments | $ | 0 | $ | 17 | $ | — | $ | 28 | $ | — | $ | 3,967 |
In thousands | Fiscal 2019 | Fiscal 2018 | ||||||
Derivatives designated as cash flow hedges: | ||||||||
Other current assets | $ | 138 | $ | 358 | ||||
Derivatives not designated as hedging instruments: | ||||||||
Other current assets | $ | — | $ | 4 |
In thousands | Fiscal 2020 | Fiscal 2019 | ||||||
Derivatives designated as cash flow hedges: | ||||||||
Other current assets | $ | 113 | $ | 138 | ||||
Other current liabilities | $ | (692 | ) | $ | — |
In thousands | Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||
Balance at January 29, 2017 | $ | (9,957 | ) | $ | 54 | $ | (9,903 | ) | ||||
Foreign currency translation adjustments | 3,730 | — | 3,730 | |||||||||
Change in fair value of derivative financial instruments | — | (715 | ) | (715 | ) | |||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | 106 | 106 | |||||||||
Other comprehensive income (loss) | 3,730 | (609 | ) | 3,121 | ||||||||
Balance at January 28, 2018 | (6,227 | ) | (555 | ) | (6,782 | ) | ||||||
Foreign currency translation adjustments | (5,032 | ) | — | (5,032 | ) | |||||||
Change in fair value of derivative financial instruments | — | 1,098 | 1,098 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (357 | ) | (357 | ) | |||||||
Other comprehensive income (loss) | (5,032 | ) | 741 | (4,291 | ) | |||||||
Balance at February 3, 2019 | (11,259 | ) | 186 | (11,073 | ) | |||||||
Foreign currency translation adjustments | (3,334 | ) | — | (3,334 | ) | |||||||
Change in fair value of derivative financial instruments | — | 163 | 163 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (343 | ) | (343 | ) | |||||||
Other comprehensive income (loss) | (3,334 | ) | (180 | ) | (3,514 | ) | ||||||
Balance at February 2, 2020 | $ | (14,593 | ) | $ | 6 | $ | (14,587 | ) |
In thousands | Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||
Balance at January 28, 2018 | $ | (6,227 | ) | $ | (555 | ) | $ | (6,782 | ) | |||
Foreign currency translation adjustments | (5,032 | ) | — | (5,032 | ) | |||||||
Change in fair value of derivative financial instruments | — | 1,098 | 1,098 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (357 | ) | (357 | ) | |||||||
Other comprehensive income (loss) | (5,032 | ) | 741 | (4,291 | ) | |||||||
Balance at February 3, 2019 | (11,259 | ) | 186 | (11,073 | ) | |||||||
Foreign currency translation adjustments | (3,334 | ) | — | (3,334 | ) | |||||||
Change in fair value of derivative financial instruments | — | 163 | 163 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (343 | ) | (343 | ) | |||||||
Other comprehensive income (loss) | (3,334 | ) | (180 | ) | (3,514 | ) | ||||||
Balance at February 2, 2020 | (14,593 | ) | 6 | (14,587 | ) | |||||||
Foreign currency translation adjustments | 8,195 | 0 | 8,195 | |||||||||
Change in fair value of derivative financial instruments | 0 | (315 | ) | (315 | ) | |||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | 0 | (410 | ) | (410 | ) | |||||||
Other comprehensive income (loss) | 8,195 | (725 | ) | 7,470 | ||||||||
Balance at January 31, 2021 | $ | (6,398 | ) | $ | (719 | ) | $ | (7,117 | ) |
1 | Refer to Note L for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Consolidated Statements of . |
In thousands | ||||
Working capital and other assets | $ | 718 | ||
Property and equipment, net | 2,049 | |||
Intangible assets | 18,300 | |||
Liabilities | (6,886 | ) | ||
Total identifiable net assets acquired | $ | 14,181 | ||
Goodwill | 66,631 | |||
Total purchase consideration | $ | 80,812 |
In thousands, except per share amounts | ||||||||||||||||||||
Fiscal 2019 (52 Weeks) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter 1 | Full Year | |||||||||||||||
Net revenues | $ | 1,241,132 | $ | 1,370,814 | $ | 1,442,472 | $ | 1,843,590 | $ | 5,898,008 | ||||||||||
Gross profit | 444,331 | 483,861 | 518,172 | 692,728 | 2,139,092 | |||||||||||||||
Operating income ,2,3 | 74,132 | 86,165 | 101,891 | 203,686 | 465,874 | |||||||||||||||
Net earnings 6 | 52,656 | 62,648 | 74,713 | 166,045 | 356,062 | |||||||||||||||
Basic earnings per share 7 | $ | 0.67 | $ | 0.80 | $ | 0.96 | $ | 2.15 | $ | 4.56 | ||||||||||
Diluted earnings per share 7 | $ | 0.66 | $ | 0.79 | $ | 0.94 | $ | 2.10 | $ | 4.49 | ||||||||||
Fiscal 2018 (53 Weeks) | First Quarter | Second Quarter | Third Quarter | �� | Fourth Quarter 1 | Full Year | ||||||||||||||
Net revenues | $ | 1,203,000 | $ | 1,275,174 | $ | 1,356,983 | $ | 1,836,436 | $ | 5,671,593 | ||||||||||
Gross profit | 432,164 | 463,942 | 494,984 | 709,923 | 2,101,013 | |||||||||||||||
Operating income ,2,3,4 | 66,550 | 74,166 | 94,384 | 200,853 | 435,953 | |||||||||||||||
Net earnings 5,6 | 45,168 | 51,713 | 81,465 | 155,338 | 333,684 | |||||||||||||||
Basic earnings per share 7 | $ | 0.54 | $ | 0.63 | $ | 1.01 | $ | 1.95 | $ | 4.10 | ||||||||||
Diluted earnings per share 7 | $ | 0.54 | $ | 0.62 | $ | 1.00 | $ | 1.93 | $ | 4.05 | ||||||||||
In thousands, except per share amounts | ||||||||||||||||||||
Fiscal 2020 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
Net revenues | $ | 1,235,203 | $ | 1,490,777 | $ | 1,764,536 | $ | 2,292,673 | $ | 6,783,189 | ||||||||||
Gross profit | 414,260 | 551,202 | 705,583 | 965,224 | 2,636,269 | |||||||||||||||
Operating income 1,2,3 | 48,645 | 185,361 | 274,604 | 402,087 | 910,697 | |||||||||||||||
Net earnings 5 | 35,423 | 134,564 | 201,772 | 308,955 | 680,714 | |||||||||||||||
Basic earnings per share 6 | $ | 0.46 | $ | 1.73 | $ | 2.60 | $ | 4.04 | $ | 8.81 | ||||||||||
Diluted earnings per share 6 | $ | 0.45 | $ | 1.70 | $ | 2.54 | $ | 3.92 | $ | 8.61 | ||||||||||
Fiscal 2019 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
Net revenues | $ | 1,241,132 | $ | 1,370,814 | $ | 1,442,472 | $ | 1,843,590 | $ | 5,898,008 | ||||||||||
Gross profit | 444,331 | 483,861 | 518,172 | 692,728 | 2,139,092 | |||||||||||||||
Operating income 1,4 | 74,132 | 86,165 | 101,891 | 203,686 | 465,874 | |||||||||||||||
Net earnings 5 | 52,656 | 62,648 | 74,713 | 166,045 | 356,062 | |||||||||||||||
Basic earnings per share 6 | $ | 0.67 | $ | 0.80 | $ | 0.96 | $ | 2.15 | $ | 4.56 | ||||||||||
Diluted earnings per share 6 | $ | 0.66 | $ | 0.79 | $ | 0.94 | $ | 2.10 | $ | 4.49 |
1 |
Fiscal 2020 includes approximately $3.4 million in the first quarter, $3.3 million in the second quarter, $2.2 million in the third quarter and $3.2 million in the fourth quarter of expenses related to the acquisition of Outward, 2019 includes approximately $6.4 million in the first quarter, $7.2 million in the second quarter, $7.4 million in the third quarter and $9.1 million in the fourth quarter of expenses related to the acquisition of Outward and its ongoing operations. |
2 | Fiscal 2020 includes approximately $11.4 million in the first quarter of inventory write-offs for inventory with minor damage that we could not liquidate through our outlets due to store closures resulting from COVID-19. |
3 | Fiscal 2020 includes approximately $15.6 million in the first quarter, $6.4 million in the second quarter and $5.1 million in the fourth quarter of expenses associated with store asset impairments due in part to the impact that COVID-19 had on our retail stores. |
Fiscal 2019 includes approximately $6.5 million in the first quarter, $0.6 million in the second quarter, $0.6 million in the third quarter and $0.6 million in the fourth quarter for employment-related expenses. |
Fiscal 2020 includes a tax benefit of $0.6 million in the third quarter and |
$4.4 million in the fourth quarter resulting from an adjustment to certain deferred tax assets and liabilities. Fiscal 2019 includes tax expense of $0.1 million in the |
Due to differences between quarterly and full year weighted average share count calculations, and the effect of quarterly rounding to the nearest cent per share, full year earnings per share may not equal the sum of the quarters. |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
(a | )(1) | Financial Statements: | ||||||||||||
The following Consolidated Financial Statements of Williams-Sonoma, Inc. and subsidiaries and the related notes are filed as part of this report pursuant to Item 8: | ||||||||||||||
PAGE | ||||||||||||||
Consolidated Statements of Earnings | 46 | |||||||||||||
Consolidated Balance Sheets | 47 | |||||||||||||
Quarterly Financial Information | 72 | |||||||||||||
(a | )(2) | |||||||||||||
Financial Statement Schedules: Schedules have been omitted because they are not required, are not applicable, or because the required information, where material, is included in the financial statements, notes, or supplementary financial information. | ||||||||||||||
(a | )(3) | |||||||||||||
Exhibits: The exhibits listed in the below Exhibit Index are filed or incorporated by reference as part of this Form 10-K | ||||||||||||||
(b | ) | |||||||||||||
Exhibits: The exhibits listed in the below Exhibit Index are filed or incorporated by reference as part of this Form 10-K | ||||||||||||||
(c | ) | |||||||||||||
Financial Statement Schedules: Schedules have been omitted because they are not required or are not applicable. |
CERTIFICATE OF INCORPORATION AND BYLAWS | |||||
�� | 3.1 | ||||
3.2 | |||||
INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES | |||||
4.1 | |||||
4.2 | |||||
10.14 | |||||
10.15 | |||||
10.16 | |||||
10.17 | |||||
10.29+ | |||||
10.30+ | |||||
10.31+ | |||||
10.32+ | |||||
OTHER INCENTIVE PLANS | |||||
10.33+ | |||||
10.34+ | |||||
10.35+ | |||||
PROPERTIES | |||||
10.36 | |||||
10.37 | |||||
10.38 | |||||
10.39 | |||||||
EMPLOYMENT AGREEMENTS | |||||||
OTHER AGREEMENTS | |||||||
OTHER EXHIBITS | |||||||
21.1* | Subsidiaries | ||||||
23.1* | |||||||
CERTIFICATIONS | |||||||
31.1* | |||||||
Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended | |||||||
Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||
Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
XBRL | |||||||
101 | * | The following financial statements from the Company’s Annual Report on Form 10-K for the fiscal year ended | |||||
104 | * | Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted under Exhibit 101). |
* | Filed herewith. |
+ | Indicates a management contract or compensatory plan or arrangement. |
ITEM 16. | FORM 10-K SUMMARY |
WILLIAMS-SONOMA, INC. | |||||||||
Date: March | By | / | |||||||
Chief Executive Officer |
Date: March | /s/ | ||
Chairman of the Board of Directors | |||
Date: March | /s/ LAURA ALBER | ||
Laura Alber | |||
Chief Executive Officer and Director | |||
(principal executive officer) | |||
Date: March | /s/ JULIE WHALEN | ||
Julie Whalen | |||
Chief Financial Officer | |||
(principal financial officer and principal accounting officer) | |||
Date: March | |||
/s/ ANNE MULCAHY | |||
Anne Mulcahy | |||
Director | |||
Date: March | |||
/s/ WILLIAM READY | |||
William Ready | |||
Director | |||
Date: March | /s/ SABRINA SIMMONS | ||
Sabrina Simmons | |||
Director | |||
Date: March | /s/ FRITS VAN PAASSCHEN | ||
Frits van Paasschen | |||
Director |