☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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. |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||
Emerging growth company | ☐ |
Item 1. | Financial Statements | 1 | ||||||||
Item 2. | 17 | |||||||||
Item 3. | ||||||||||
Item 4. | Controls and Procedures | 24 | ||||||||
Item 1. | Legal Proceedings | 25 | ||||||||
Item 1A. | Risk Factors | |||||||||
Item 2. | ||||||||||
Item 3. | ||||||||||
Item 4. | Mine Safety Disclosures | 26 | ||||||||
Item 5. | Other Information | 26 | ||||||||
Item | ||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
In thousands, except per share amounts | November 3, 2019 | October 28, 2018 | November 3, 2019 | October 28, 2018 | ||||||||||||
Net revenues | $ | 1,442,472 | $ | 1,356,983 | $ | 4,054,418 | $ | 3,835,157 | ||||||||
Cost of goods sold | 924,300 | 861,999 | 2,608,054 | 2,444,067 | ||||||||||||
Gross profit | 518,172 | 494,984 | 1,446,364 | 1,391,090 | ||||||||||||
Selling, general and administrative expenses | 416,281 | 400,600 | 1,184,176 | 1,155,990 | ||||||||||||
Operating income | 101,891 | 94,384 | 262,188 | 235,100 | ||||||||||||
Interest (income) expense, net | 2,564 | 2,288 | 7,486 | 5,073 | ||||||||||||
Earnings before income taxes | 99,327 | 92,096 | 254,702 | 230,027 | ||||||||||||
Income taxes | 24,614 | 10,631 | 64,685 | 51,681 | ||||||||||||
Net earnings | $ | 74,713 | $ | 81,465 | $ | 190,017 | $ | 178,346 | ||||||||
Basic earnings per share | $ | 0.96 | $ | 1.01 | $ | 2.43 | $ | 2.17 | ||||||||
Diluted earnings per share | $ | 0.94 | $ | 1.00 | $ | 2.39 | $ | 2.15 | ||||||||
Shares used in calculation of earnings per share: | ||||||||||||||||
Basic | 77,897 | 80,475 | 78,356 | 82,070 | ||||||||||||
Diluted | 79,191 | 81,641 | 79,465 | 82,951 |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
In thousands, except per share amounts | November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | ||||||||||||
Net revenues | $ | 1,764,536 | $ | 1,442,472 | $ | 4,490,516 | $ | 4,054,418 | ||||||||
Cost of goods sold | 1,058,953 | 924,300 | 2,819,471 | 2,608,054 | ||||||||||||
Gross profit | 705,583 | 518,172 | 1,671,045 | 1,446,364 | ||||||||||||
Selling, general and administrative expenses | 430,979 | 416,281 | 1,162,435 | 1,184,176 | ||||||||||||
Operating income | 274,604 | 101,891 | 508,610 | 262,188 | ||||||||||||
Interest expense, net | 5,344 | 2,564 | 13,967 | 7,486 | ||||||||||||
Earnings before income taxes | 269,260 | 99,327 | 494,643 | 254,702 | ||||||||||||
Income taxes | 67,488 | �� | 24,614 | 122,884 | 64,685 | |||||||||||
Net earnings | $ | 201,772 | $ | 74,713 | $ | 371,759 | $ | 190,017 | ||||||||
Basic earnings per share | $ | 2.60 | $ | 0.96 | $ | 4.80 | $ | 2.43 | ||||||||
Diluted earnings per share | $ | 2.54 | $ | 0.94 | $ | 4.71 | $ | 2.39 | ||||||||
Shares used in calculation of earnings per share: | ||||||||||||||||
Basic | 77,487 | 77,897 | 77,511 | 78,356 | ||||||||||||
Diluted | 79,332 | 79,191 | 79,012 | 79,465 | ||||||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
In thousands | November 3, 2019 | October 28, 2018 | November 3, 2019 | October 28, 2018 | ||||||||||||
Net earnings | $ | 74,713 | $ | 81,465 | $ | 190,017 | $ | 178,346 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments | 1,783 | (1,830 | ) | (2,477 | ) | (5,968 | ) | |||||||||
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $97, $(23), $163 and $378 | 5 | (65 | ) | 77 | 1,064 | |||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax of $187, $43, $221 and $19 | (8 | ) | (120 | ) | (235 | ) | (71 | ) | ||||||||
Comprehensive income | $ | 76,493 | $ | 79,450 | $ | 187,382 | $ | 173,371 | ||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
In thousands | November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | ||||||||||||
Net earnings | $ | 201,772 | $ | 74,713 | $ | 371,759 | $ | 190,017 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments | (745 | ) | 1,783 | 716 | (2,477 | ) | ||||||||||
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $21, $97, $146 and $163 | 54 | 5 | 403 | 77 | ||||||||||||
Reclassification adjustment for realized gain on derivative financial instruments, net of tax of $85, $187, $136 and $221 | (231 | ) | (8 | ) | (375 | ) | (235 | ) | ||||||||
Comprehensive income | $ | 200,850 | $ | 76,493 | $ | 372,503 | $ | 187,382 | ||||||||
In thousands, except per share amounts | November 3, 2019 | February 3, 2019 | October 28, 2018 | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 155,025 | $ | 338,954 | $ | 164,414 | ||||||
Accounts receivable, net | 110,131 | 107,102 | 113,582 | |||||||||
Merchandise inventories, net | 1,258,541 | 1,124,992 | 1,197,554 | |||||||||
Prepaid expenses | 115,288 | 101,356 | 94,071 | |||||||||
Other current assets | 20,260 | 21,939 | 21,805 | |||||||||
Total current assets | 1,659,245 | 1,694,343 | 1,591,426 | |||||||||
Property and equipment, net | 915,740 | 929,635 | 931,361 | |||||||||
Operating lease right-of-use assets | 1,194,061 | — | — | |||||||||
Deferred income taxes, net | 41,763 | 44,055 | 45,999 | |||||||||
Goodwill | 85,355 | 85,382 | 85,649 | |||||||||
Other long-term assets, net | 67,660 | 59,429 | 64,324 | |||||||||
Total assets | $ | 3,963,824 | $ | 2,812,844 | $ | 2,718,759 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 444,279 | $ | 526,702 | $ | 487,733 | ||||||
Accrued expenses | 140,789 | 163,559 | 132,398 | |||||||||
Gift card and other deferred revenue | 296,157 | 290,445 | 275,567 | |||||||||
Borrowings under revolving line of credit | 100,000 | — | 60,000 | |||||||||
Income taxes payable | 13,182 | 21,461 | 9,903 | |||||||||
Operating lease liabilities | 225,530 | — | — | |||||||||
Other current liabilities | 68,973 | 72,645 | 71,119 | |||||||||
Total current liabilities | 1,288,910 | 1,074,812 | 1,036,720 | |||||||||
Deferred rent and lease incentives | 29,388 | 201,374 | 205,143 | |||||||||
Long-term debt | 299,769 | 299,620 | 299,571 | |||||||||
Long-term operating lease liabilities | 1,127,403 | — | — | |||||||||
Other long-term liabilities | 86,461 | 81,324 | 85,388 | |||||||||
Total liabilities | 2,831,931 | 1,657,130 | 1,626,822 | |||||||||
Commitments and contingencies – See Note F | ||||||||||||
Stockholders’ equity | ||||||||||||
Preferred stock: $.01 par value; 7,500 shares authorized; NaN issued | — | — | — | |||||||||
Common stock: $.01 par value; 253,125 shares authorized; 77,612, 78,813 and 80,282 shares issued and outstanding at November 3, 2019, February 3, 2019 and October 28, 2018, respectively | 777 | 789 | 803 | |||||||||
Additional paid-in capital | 594,991 | 581,900 | 570,924 | |||||||||
Retained earnings | 550,774 | 584,333 | 532,172 | |||||||||
Accumulated other comprehensive loss | (13,708 | ) | (11,073 | ) | (11,757 | ) | ||||||
Treasury stock, at cost: 14, 2 and 2 shares as of November 3, 2019, February 3, 2019 and October 28, 2018, respectively | (941 | ) | (235 | ) | (205 | ) | ||||||
Total stockholders’ equity | 1,131,893 | 1,155,714 | 1,091,937 | |||||||||
Total liabilities and stockholders’ equity | $ | 3,963,824 | $ | 2,812,844 | $ | 2,718,759 | ||||||
In thousands, except per share amounts | November 1, 2020 | February 2, 2020 | November 3, 2019 | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 773,170 | $ | 432,162 | $ | 155,025 | ||||||
Accounts receivable, net | 129,782 | 111,737 | 110,131 | |||||||||
Merchandise inventories, net | 1,125,475 | 1,100,544 | 1,258,541 | |||||||||
Prepaid expenses | 84,974 | 90,426 | 115,288 | |||||||||
Other current assets | 23,556 | 20,766 | 20,260 | |||||||||
Total current assets | 2,136,957 | 1,755,635 | 1,659,245 | |||||||||
Property and equipment, net | 869,092 | 929,038 | 915,740 | |||||||||
Operating lease right-of-use | 1,091,649 | 1,166,383 | 1,194,061 | |||||||||
Deferred income taxes, net | 42,185 | 47,977 | 41,763 | |||||||||
Goodwill | 85,402 | 85,343 | 85,355 | |||||||||
Other long-term assets, net | 85,394 | 69,666 | 67,660 | |||||||||
Total assets | $ | 4,310,679 | $ | 4,054,042 | $ | 3,963,824 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 562,294 | $ | 521,235 | $ | 444,279 | ||||||
Accrued expenses | 194,985 | 175,003 | 140,789 | |||||||||
Gift card and other deferred revenue | 349,671 | 289,613 | 296,157 | |||||||||
Income taxes payable | 36,037 | 22,501 | 13,182 | |||||||||
Current debt | — | 299,818 | — | |||||||||
Borrowings under revolving line of credit | — | — | 100,000 | |||||||||
Operating lease liabilities | 217,448 | 227,923 | 225,530 | |||||||||
Other current liabilities | 99,691 | 73,462 | 68,973 | |||||||||
Total current liabilities | 1,460,126 | 1,609,555 | 1,288,910 | |||||||||
Deferred rent and lease incentives | 21,858 | 27,659 | 29,388 | |||||||||
Long-term debt | 299,173 | — | 299,769 | |||||||||
Long-term operating lease liabilities | 1,027,142 | 1,094,579 | 1,127,403 | |||||||||
Other long-term liabilities | 100,478 | 86,389 | 86,461 | |||||||||
Total liabilities | 2,908,777 | 2,818,182 | 2,831,931 | |||||||||
Commitments and contingencies – See Note F | ||||||||||||
Stockholders’ equity | ||||||||||||
Preferred stock: $.01 par value; 7,500 shares authorized; NaN issued | — | — | — | |||||||||
Common stock: $.01 par value; 253,125 shares authorized; 76,697, 77,137 and 77,612 shares issued and outstanding at November 1, 2020, February 2, 2020 and November 3, 2019, respectively | 768 | 772 | 777 | |||||||||
Additional paid-in capital | 623,379 | 605,822 | 594,991 | |||||||||
Retained earnings | 792,196 | 644,794 | 550,774 | |||||||||
Accumulated other comprehensive loss | (13,843 | ) | (14,587 | ) | (13,708 | ) | ||||||
Treasury stock, at cost: 8, 14 and 14 shares as of November 1, 2020, February 2, 2020 and November 3, 2019, respectively | (598 | ) | (941 | ) | (941 | ) | ||||||
Total stockholders’ equity | 1,401,902 | 1,235,860 | 1,131,893 | |||||||||
Total liabilities and stockholders’ equity | $ | 4,310,679 | $ | 4,054,042 | $ | 3,963,824 |
Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||
In thousands | Shares | Amount | ||||||||||||||||||||||||||
Balance at February 3, 2019 | 78,813 | $ | 789 | $ | 581,900 | $ | 584,333 | $ | (11,073 | ) | $ | (235 | ) | $ | 1,155,714 | |||||||||||||
Net earnings | — | — | — | 52,656 | — | — | 52,656 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (3,009 | ) | — | (3,009 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 204 | — | 204 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (67 | ) | — | (67 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 571 | 5 | (25,298 | ) | — | — | (113 | ) | (25,406 | ) | ||||||||||||||||||
Repurchases of common stock | (576 | ) | (6 | ) | (2,874 | ) | (30,010 | ) | — | (958 | ) | (33,848 | ) | |||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (332 | ) | — | — | 332 | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 18,376 | — | — | — | 18,376 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,549 | ) | — | — | (39,549 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 2 | — | — | — | (3,303 | ) | — | — | (3,303 | ) | |||||||||||||||||||
Balance at May 5, 2019 | 78,808 | $ | 788 | $ | 571,772 | $ | 564,127 | $ | (13,945 | ) | $ | (974 | ) | $ | 1,121,768 | |||||||||||||
Net earnings | — | — | — | 62,648 | — | — | 62,648 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (1,251 | ) | — | (1,251 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (132 | ) | — | (132 | ) | |||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (160 | ) | — | (160 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 31 | 1 | (482 | ) | — | — | — | (481 | ) | |||||||||||||||||||
Repurchases of common stock | (636 | ) | (6 | ) | (3,170 | ) | (35,107 | ) | — | — | (38,283 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 16,708 | — | — | — | 16,708 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,214 | ) | — | — | (39,214 | ) | |||||||||||||||||||
Balance at August 4, 2019 | 78,203 | $ | 783 | $ | 584,828 | $ | 552,454 | $ | (15,488 | ) | $ | (974 | ) | $ | 1,121,603 | |||||||||||||
Net earnings | — | — | — | 74,713 | — | — | 74,713 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 1,783 | — | 1,783 | |||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 5 | — | 5 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (8 | ) | — | (8 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 19 | — | (715 | ) | — | — | (21 | ) | (736 | ) | ||||||||||||||||||
Repurchases of common stock | (610 | ) | (6 | ) | (3,068 | ) | (37,509 | ) | — | — | (40,583 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (54 | ) | — | — | 54 | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 14,000 | — | — | — | 14,000 | |||||||||||||||||||||
Dividends declared | — | — | — | (38,884 | ) | — | — | (38,884 | ) | |||||||||||||||||||
Balance at November 3, 2019 | 77,612 | $ | 777 | $ | 594,991 | $ | 550,774 | $ | (13,708 | ) | $ | (941 | ) | $ | 1,131,893 | |||||||||||||
Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||
In thousands | Shares | Amount | ||||||||||||||||||||||||||
Balance at January 28, 2018 | 83,726 | $ | 837 | $ | 562,814 | $ | 647,422 | $ | (6,782 | ) | $ | (725 | ) | $ | 1,203,566 | |||||||||||||
Net earnings | — | — | — | 45,168 | — | — | 45,168 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (1,145 | ) | — | (1,145 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 1,123 | — | 1,123 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | 49 | — | 49 | |||||||||||||||||||||
Conversion/release of stock-based awards 1 | 228 | 3 | (7,213 | ) | — | — | (226 | ) | (7,436 | ) | ||||||||||||||||||
Repurchases of common stock | (732 | ) | (7 | ) | (3,437 | ) | (34,269 | ) | — | — | (37,713 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (290 | ) | (358 | ) | — | 648 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 12,811 | — | — | — | 12,811 | |||||||||||||||||||||
Dividends declared | — | — | — | (36,877 | ) | — | — | (36,877 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 2 | — | — | — | 17,688 | — | — | 17,688 | |||||||||||||||||||||
Balance at April 29, 2018 | 83,222 | $ | 833 | $ | 564,685 | $ | 638,774 | $ | (6,755 | ) | $ | (303 | ) | $ | 1,197,234 | |||||||||||||
Net earnings | — | — | — | 51,713 | — | — | 51,713 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (2,993 | ) | — | (2,993 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 6 | — | 6 | |||||||||||||||||||||
Conversion/release of stock-based awards 1 | 175 | 2 | (4,869 | ) | — | — | (32 | ) | (4,899 | ) | ||||||||||||||||||
Repurchases of common stock | (2,409 | ) | (25 | ) | (11,431 | ) | (125,649 | ) | — | — | (137,105 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (72 | ) | (5 | ) | — | 77 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 13,497 | — | — | — | 13,497 | |||||||||||||||||||||
Dividends declared | — | — | — | (36,465 | ) | — | — | (36,465 | ) | |||||||||||||||||||
Balance at July 29, 2018 | 80,988 | $ | 810 | $ | 561,810 | $ | 528,368 | $ | (9,742 | ) | $ | (258 | ) | $ | 1,080,988 | |||||||||||||
Net earnings | — | — | — | 81,465 | — | — | 81,465 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (1,830 | ) | — | (1,830 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (65 | ) | — | (65 | ) | |||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (120 | ) | — | (120 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 37 | — | (1,571 | ) | — | — | — | (1,571 | ) | |||||||||||||||||||
Repurchases of common stock | (743 | ) | (7 | ) | (3,604 | ) | (41,792 | ) | — | — | (45,403 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (53 | ) | — | — | 53 | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 14,342 | — | — | — | 14,342 | |||||||||||||||||||||
Dividends declared | — | — | — | (35,869 | ) | — | — | (35,869 | ) | |||||||||||||||||||
Balance at October 28, 2018 | 80,282 | $ | 803 | $ | 570,924 | $ | 532,172 | $ | (11,757 | ) | $ | (205 | ) | $ | 1,091,937 | |||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||
In thousands | Shares | Amount | ||||||||||||||||||||||||||
Balance at February 2, 2020 | 77,137 | $ | 772 | $ | 605,822 | $ | 644,794 | $ | (14,587 | ) | $ | (941 | ) | $ | 1,235,860 | |||||||||||||
Net earnings | — | — | — | 35,423 | — | — | 35,423 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (5,276 | ) | — | (5,276 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 549 | — | 549 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) on derivative financial instruments, net of tax | — | — | — | — | (37 | ) | — | (37 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 622 | 6 | (28,747 | ) | — | — | (171 | ) | (28,912 | ) | ||||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (499 | ) | (14 | ) | — | 513 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 19,608 | — | — | — | 19,608 | |||||||||||||||||||||
Dividends declared | — | — | — | (38,286 | ) | — | — | (38,286 | ) | |||||||||||||||||||
Balance at May 3, 2020 | 77,759 | $ | 778 | $ | 596,184 | $ | 641,917 | $ | (19,351 | ) | $ | (599 | ) | $ | 1,218,929 | |||||||||||||
Net earnings | — | — | — | 134,564 | — | — | 134,564 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 6,737 | — | 6,737 | |||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (200 | ) | — | (200 | ) | |||||||||||||||||||
Reclassification adjustment for realized (gain) on derivative financial instruments, net of tax | — | — | — | — | (107 | ) | — | (107 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 37 | — | (677 | ) | — | — | — | (677 | ) | |||||||||||||||||||
Stock-based compensation expense | — | — | 13,385 | — | — | — | 13,385 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,709 | ) | — | — | (39,709 | ) | |||||||||||||||||||
Balance at August 2, 2020 | 77,796 | $ | 778 | $ | 608,892 | $ | 736,772 | $ | (12,921 | ) | $ | (599 | ) | $ | 1,332,922 | |||||||||||||
Net earnings | — | — | — | 201,772 | — | — | 201,772 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (745 | ) | — | (745 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 54 | — | 54 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) on derivative financial instruments, net of tax | — | — | — | — | (231 | ) | — | (231 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 20 | 1 | (968 | ) | — | — | 1 | (966 | ) | |||||||||||||||||||
Repurchases of common stock | (1,119 | ) | (11 | ) | (5,640 | ) | (103,397 | ) | — | — | (109,048 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 21,095 | — | — | — | 21,095 | |||||||||||||||||||||
Dividends declared | — | — | — | (42,951 | ) | — | — | (42,951 | ) | |||||||||||||||||||
Balance at November 1, 2020 | 76,697 | $ | 768 | $ | 623,379 | $ | 792,196 | $ | (13,843 | ) | $ | (598 | ) | $ | 1,401,902 |
1 | Amounts are shown net of shares withheld for employee taxes. |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||
In thousands | Shares | Amount | ||||||||||||||||||||||||||
Balance at February 3, 2019 | 78,813 | $ | 789 | $ | 581,900 | $ | 584,333 | $ | (11,073 | ) | $ | (235 | ) | $ | 1,155,714 | |||||||||||||
Net earnings | — | — | — | 52,656 | — | — | 52,656 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (3,009 | ) | — | (3,009 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 204 | — | 204 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (67 | ) | — | (67 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 571 | 5 | (25,298 | ) | — | — | (113 | ) | (25,406 | ) | ||||||||||||||||||
Repurchases of common stock | (576 | ) | (6 | ) | (2,874 | ) | (30,010 | ) | — | (958 | ) | (33,848 | ) | |||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (332 | ) | — | — | 332 | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 18,376 | — | — | — | 18,376 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,549 | ) | — | — | (39,549 | ) | |||||||||||||||||||
Adoption of accounting pronouncements 2 | — | — | — | (3,303 | ) | — | — | (3,303 | ) | |||||||||||||||||||
Balance at May 5, 2019 | 78,808 | $ | 788 | $ | 571,772 | $ | 564,127 | $ | (13,945 | ) | $ | (974 | ) | $ | 1,121,768 | |||||||||||||
Net earnings | — | — | — | 62,648 | — | — | 62,648 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (1,251 | ) | — | (1,251 | ) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | (132 | ) | — | (132 | ) | |||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (160 | ) | — | (160 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 31 | 1 | (482 | ) | — | — | — | (481 | ) | |||||||||||||||||||
Repurchases of common stock | (636 | ) | (6 | ) | (3,170 | ) | (35,107 | ) | — | — | (38,283 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 16,708 | — | — | — | 16,708 | |||||||||||||||||||||
Dividends declared | — | — | — | (39,214 | ) | — | — | (39,214 | ) | |||||||||||||||||||
Balance at August 4, 2019 | 78,203 | $ | 783 | $ | 584,828 | $ | 552,454 | $ | (15,488 | ) | $ | (974 | ) | $ | 1,121,603 | |||||||||||||
Net earnings | — | — | — | 74,713 | — | — | 74,713 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 1,783 | — | 1,783 | |||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax | — | — | — | — | 5 | — | 5 | |||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | — | — | — | — | (8 | ) | — | (8 | ) | |||||||||||||||||||
Conversion/release of stock-based awards 1 | 19 | — | (715 | ) | — | — | (21 | ) | (736 | ) | ||||||||||||||||||
Repurchases of common stock | (610 | ) | (6 | ) | (3,068 | ) | (37,509 | ) | — | — | (40,583 | ) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 | — | — | (54 | ) | — | — | 54 | — | ||||||||||||||||||||
Stock-based compensation expense | — | — | 14,000 | — | — | — | 14,000 | |||||||||||||||||||||
Dividends declared | — | — | — | (38,884 | ) | — | — | (38,884 | ) | |||||||||||||||||||
Balance at November 3, 2019 | 77,612 | $ | 777 | $ | 594,991 | $ | 550,774 | $ | (13,708 | ) | $ | (941 | ) | $ | 1,131,893 |
1 | Amounts are shown net of shares withheld for employee taxes. |
2 | Relates to our adoption of ASU 2016-02, Leases, in fiscal 2019. |
Thirty-nine Weeks Ended | ||||||||
In thousands | November 3, 2019 | October 28, 2018 | ||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 190,017 | $ | 178,346 | ||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 140,495 | 141,167 | ||||||
L oss on disposal/impairment of assets | 682 | 5,290 | ||||||
Amortization of deferred lease incentives | (5,985 | ) | (19,728 | ) | ||||
Non-cash lease expense | 160,138 | — | ||||||
Deferred income taxes | (10,937 | ) | 12,170 | |||||
Tax benefit related to stock-based awards | 13,648 | 10,361 | ||||||
Stock-based compensation expense | 49,516 | 40,953 | ||||||
Other | 14 | (389 | ) | |||||
Changes in: | ||||||||
Accounts receivable | (2,842 | ) | (21,851 | ) | ||||
Merchandise inventories | (133,637 | ) | (143,723 | ) | ||||
Prepaid expenses and other assets | (24,157 | ) | (50,171 | ) | ||||
Accounts payable | (92,101 | ) | 8,689 | |||||
Accrued expenses and other liabilities | (24,148 | ) | 19,002 | |||||
Gift card and other deferred revenue | 5,848 | 24,048 | ||||||
Deferred rent and lease incentives | — | 23,695 | ||||||
Operating lease liabilities | (168,308 | ) | — | |||||
Income taxes payable | (8,293 | ) | (48,358 | ) | ||||
Net cash provided by operating activities | 89,950 | 179,501 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (121,154 | ) | (128,326 | ) | ||||
Other | 470 | 1,804 | ||||||
Net cash used in investing activities | (120,684 | ) | (126,522 | ) | ||||
Cash flows from financing activities: | ||||||||
Payment of dividends | (113,159 | ) | (105,654 | ) | ||||
Repurchases of common stock | (112,714 | ) | (220,221 | ) | ||||
Borrowings under revolving line of credit | 100,000 | 60,000 | ||||||
Tax withholdings related to stock-based awards | (26,623 | ) | (13,906 | ) | ||||
Net cash used in financing activities | (152,496 | ) | (279,781 | ) | ||||
Effect of exchange rates on cash and cash equivalents | (699 | ) | 1,080 | |||||
Net decrease in cash and cash equivalents | (183,929 | ) | (225,722 | ) | ||||
Cash and cash equivalents at beginning of period | 338,954 | 390,136 | ||||||
Cash and cash equivalents at end of period | $ | 155,025 | $ | 164,414 | ||||
Thirty-nine Weeks Ended | ||||||||
In thousands | November 1, 2020 | November 3, 2019 | ||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 371,759 | $ | 190,017 | ||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 140,340 | 140,495 | ||||||
(Gain) loss on disposal/impairment of assets | 26,220 | 682 | ||||||
Amortization of deferred lease incentives | (4,538 | ) | (5,985 | ) | ||||
Non-cash lease expense | 162,767 | 160,138 | ||||||
Deferred income taxes | (6,969 | ) | (10,937 | ) | ||||
Tax benefit related to stock-based awards | 13,143 | 13,648 | ||||||
Stock-based compensation expense | 54,671 | 49,516 | ||||||
Other | (9 | ) | 14 | |||||
Changes in: | ||||||||
Accounts receivable | (18,017 | ) | (2,842 | ) | ||||
Merchandise inventories | (22,990 | ) | (133,637 | ) | ||||
Prepaid expenses and other assets | (4,807 | ) | (24,157 | ) | ||||
Accounts payable | 54,279 | (92,101 | ) | |||||
Accrued expenses and other liabilities | 58,539 | (24,148 | ) | |||||
Gift card and other deferred revenue | 59,953 | 5,848 | ||||||
Operating lease liabilities | (171,245 | ) | (168,308 | ) | ||||
Income taxes payable | 13,532 | (8,293 | ) | |||||
Net cash provided by operating activities | 726,628 | 89,950 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (124,885 | ) | (121,154 | ) | ||||
Other | 506 | 470 | ||||||
Net cash used in investing activities | (124,379 | ) | (120,684 | ) | ||||
Cash flows from financing activities: | ||||||||
Borrowings under revolving line of credit | 487,823 | 100,000 | ||||||
Repayments under the revolving line of credit | (487,823 | ) | — | |||||
Payment of dividends | (116,761 | ) | (113,159 | ) | ||||
Repurchases of common stock | (109,048 | ) | (112,714 | ) | ||||
Tax withholdings related to stock-based awards | (30,555 | ) | (26,623 | ) | ||||
Debt issuance costs | (3,645 | ) | — | |||||
Net cash used in financing activities | (260,009 | ) | (152,496 | ) | ||||
Effect of exchange rates on cash and cash equivalents | (1,232 | ) | (699 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 341,008 | (183,929 | ) | |||||
Cash and cash equivalents at beginning of period | 432,162 | 338,954 | ||||||
Cash and cash equivalents at end of period | $ | 773,170 | $ | 155,025 |
Shares | |||||
Balance at February | |||||
2,884,194 | |||||
Granted | |||||
Granted, with vesting subject to performance conditions | |||||
Released 1 | (1,030,199 | ) | |||
Cancelled | ( | ) | |||
Balance at November | |||||
3,155,041 | |||||
Vested plus expected to vest at November | |||||
2,340,530 |
1 | Excludes 170,308 incremental shares released due to achievement of performance conditions above target. |
In thousands, except per share amounts | Net Earnings | Weighted Average Shares | Earnings Per Share | |||||||||
Thirteen weeks ended November 3, 2019 | ||||||||||||
Basic | $ | 74,713 | 77,897 | $ | 0.96 | |||||||
Effect of dilutive stock-based awards | 1,294 | |||||||||||
Diluted | $ | 74,713 | 79,191 | $ | 0.94 | |||||||
Thirteen weeks ended October 28, 2018 | ||||||||||||
Basic | $ | 81,465 | 80,475 | $ | 1.01 | |||||||
Effect of dilutive stock-based awards | 1,166 | |||||||||||
Diluted | $ | 81,465 | 81,641 | $ | 1.00 | |||||||
Thirty-nine weeks ended November 3, 2019 | ||||||||||||
Basic | $ | 190,017 | 78,356 | $ | 2.43 | |||||||
Effect of dilutive stock-based awards | 1,109 | |||||||||||
Diluted | $ | 190,017 | 79,465 | $ | 2.39 | |||||||
Thirty-nine weeks ended October 28, 2018 | ||||||||||||
Basic | $ | 178,346 | 82,070 | $ | 2.17 | |||||||
Effect of dilutive stock-based awards | 881 | |||||||||||
Diluted | $ | 178,346 | 82,951 | $ | 2.15 | |||||||
In thousands, except per share amounts | Net Earnings | Weighted Average Shares | Earnings Per Share | |||||||||
Thirteen weeks ended November 1, 2020 | ||||||||||||
Basic | $ | 201,772 | 77,487 | $ | 2.60 | |||||||
Effect of dilutive stock-based awards | 1,845 | |||||||||||
Diluted | $ | 201,772 | 79,332 | $ | 2.54 | |||||||
Thirteen weeks ended November 3, 2019 | ||||||||||||
Basic | $ | 74,713 | 77,897 | $ | 0.96 | |||||||
Effect of dilutive stock-based awards | 1,294 | |||||||||||
Diluted | $ | 74,713 | 79,191 | $ | 0.94 | |||||||
Thirty-nine weeks ended November 1, 2020 | ||||||||||||
Basic | $ | 371,759 | 77,511 | $ | 4.80 | |||||||
Effect of dilutive stock-based awards | 1,501 | |||||||||||
Diluted | $ | 371,759 | 79,012 | $ | 4.71 | |||||||
Thirty-nine weeks ended November 3, 2019 | ||||||||||||
Basic | $ | 190,017 | 78,356 | $ | 2.43 | |||||||
Effect of dilutive stock-based awards | 1,109 | |||||||||||
Diluted | $ | 190,017 | 79,465 | $ | 2.39 |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
In thousands | November 3, 2019 | October 28, 2018 | November 3, 2019 | October 28, 2018 | ||||||||||||
Pottery Barn | $ | 556,985 | $ | 533,469 | $ | 1,573,958 | $ | 1,530,300 | ||||||||
West Elm | 390,341 | 339,099 | 1,057,398 | 913,662 | ||||||||||||
Williams Sonoma | 205,493 | 203,936 | 591,761 | 600,092 | ||||||||||||
Pottery Barn Kids and Teen | 228,051 | 227,331 | 632,950 | 621,534 | ||||||||||||
Other 1 | 61,602 | 53,148 | 198,351 | 169,569 | ||||||||||||
Total 2 | $ | 1,442,472 | $ | 1,356,983 | $ | 4,054,418 | $ | 3,835,157 | ||||||||
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
In thousands | November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | ||||||||||||
Pottery Barn | $ | 684,029 | $ | 556,985 | $ | 1,726,920 | $ | 1,573,958 | ||||||||
West Elm | 474,959 | 390,341 | 1,170,941 | 1,057,398 | ||||||||||||
Williams Sonoma | 259,725 | 205,493 | 702,160 | 591,761 | ||||||||||||
Pottery Barn Kids and Teen | 277,598 | 228,051 | 702,137 | 632,950 | ||||||||||||
Other 1 | 68,225 | 61,602 | 188,358 | 198,351 | ||||||||||||
Total 2 | $ | 1,764,536 | $ | 1,442,472 | $ | 4,490,516 | $ | 4,054,418 |
1 | Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and |
2 | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately |
In thousands | November 3, 2019 | October 28, 2018 | ||||||
U.S. | $ | 2,140,505 | $ | 1,076,367 | ||||
International | 164,074 | 50,966 | ||||||
Total | $ | 2,304,579 | $ | 1,127,333 | ||||
In thousands | November 1, 2020 | November 3, 2019 | ||||||
U.S. | $ | 2,025,140 | $ | 2,140,505 | ||||
International | 148,582 | 164,074 | ||||||
Total | $ | 2,173,722 | $ | 2,304,579 |
In thousands | November 3, 2019 | October 28, 2018 | ||||||
Contracts designated as cash flow hedges | $ | 19,700 | $ | 13,300 | ||||
Contracts not designated as cash flow hedges | $ | — | $ | 5,200 |
In thousands | November 1, 2020 | November 3, 2019 | ||||||
Contracts designated as cash flow hedges | $ | 28,200 | $ | 19,700 |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||||||||||||||||||
November 3, 2019 | October 28, 2018 | November 3, 2019 | October 28, 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 | 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 | $ | 924,300 | $ | 416,281 | $ | 861,999 | $ | 400,600 | $ | 2,608,054 | $ | 1,184,176 | $ | 2,444,067 | $ | 1,155,990 | ||||||||||||||||
Gain (loss) recognized in income | ||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | $ | 204 | $ | — | $ | 163 | $ | 16 | $ | 499 | $ | — | $ | 90 | $ | 49 | ||||||||||||||||
Derivatives not designated as hedging instruments | $ | — | $ | 6 | $ | — | $ | 105 | $ | — | $ | 24 | $ | — | $ | 4,048 |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||||||||||||||||||
November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | |||||||||||||||||||||||||||||
In thousands | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | Cost of goods sold | Selling, general and administrative expenses | ||||||||||||||||||||||||
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | $ | 1,058,953 | $ | 430,979 | $ | 924,300 | $ | 416,281 | $ | 2,819,471 | $ | 1,162,435 | $ | 2,608,054 | $ | 1,184,176 | ||||||||||||||||
Gain (loss) recognized in income | ||||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | $ | 315 | $ | — | $ | 204 | $ | — | $ | 510 | $ | — | $ | 499 | $ | — | ||||||||||||||||
Derivatives not designated as hedging instruments | $ | — | $ | (22 | ) | $ | — | $ | 6 | $ | — | $ | (20 | ) | $ | — | $ | 24 |
In thousands | November 3, 2019 | October 28, 2018 | ||||||
Derivatives designated as cash flow hedges: | ||||||||
Other current assets | $ | 132 | $ | 504 | ||||
Derivatives not designated as hedging instruments: | ||||||||
Other current assets | $ | — | $ | 118 |
In thousands | November 1, 2020 | November 3, 2019 | ||||||
Derivatives designated as cash flow hedges: | ||||||||
Other current assets | $ | 181 | $ | 132 | ||||
Other current liabilities | $ | (7 | ) | $ | — |
In thousands | Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||
Balance at February 3, 2019 | $ | (11,259 | ) | $ | 186 | $ | (11,073 | ) | ||||
Foreign currency translation adjustments | (3,009 | ) | — | (3,009 | ) | |||||||
Change in fair value of derivative financial instruments | — | 204 | 204 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | — | (67 | ) | (67 | ) | |||||||
Other comprehensive income (loss) | (3,009 | ) | 137 | (2,872 | ) | |||||||
Balance at May 5, 2019 | (14,268 | ) | 323 | (13,945 | ) | |||||||
Foreign currency translation adjustments | (1,251 | ) | — | (1,251 | ) | |||||||
Change in fair value of derivative financial instruments | — | (132 | ) | (132 | ) | |||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | — | (160 | ) | (160 | ) | |||||||
Other comprehensive income (loss) | (1,251 | ) | (292 | ) | (1,543 | ) | ||||||
Balance at August 4, 2019 | (15,519 | ) | 31 | (15,488 | ) | |||||||
Foreign currency translation adjustments | 1,783 | — | 1,783 | |||||||||
Change in fair value of derivative financial instruments | — | 5 | 5 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | — | (8 | ) | (8 | ) | |||||||
Other comprehensive income (loss) | 1,783 | (3 | ) | 1,780 | ||||||||
Balance at November 3, 2019 | $ | (13,736 | ) | $ | 28 | $ | (13,708 | ) | ||||
Balance at January 28, 2018 | $ | (6,227 | ) | $ | (555 | ) | $ | (6,782 | ) | |||
Foreign currency translation adjustments | (1,145 | ) | — | (1,145 | ) | |||||||
Change in fair value of derivative financial instruments | — | 1,123 | 1,123 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | — | 49 | 49 | |||||||||
Other comprehensive income (loss) | (1,145 | ) | 1,172 | 27 | ||||||||
Balance at April 29, 2018 | (7,372 | ) | 617 | (6,755 | ) | |||||||
Foreign currency translation adjustments | (2,993 | ) | — | (2,993 | ) | |||||||
Change in fair value of derivative financial instruments | — | 6 | 6 | |||||||||
Other comprehensive income (loss) | (2,993 | ) | 6 | (2,987 | ) | |||||||
Balance at July 29, 2018 | (10,365 | ) | 623 | (9,742 | ) | |||||||
Foreign currency translation adjustments | (1,830 | ) | — | (1,830 | ) | |||||||
Change in fair value of derivative financial instruments | — | (65 | ) | (65 | ) | |||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments | — | (120 | ) | (120 | ) | |||||||
Other comprehensive income (loss) | (1,830 | ) | (185 | ) | (2,015 | ) | ||||||
Balance at October 28, 2018 | $ | (12,195 | ) | $ | 438 | $ | (11,757 | ) |
In thousands | Foreign Currency Translation | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||
Balance at February 2, 2020 | $ | (14,593 | ) | $ | 6 | $ | (14,587 | ) | ||||
Foreign currency translation adjustments | (5,276 | ) | — | (5,276 | ) | |||||||
Change in fair value of derivative financial instruments | — | 549 | 549 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (37 | ) | (37 | ) | |||||||
Other comprehensive income (loss) | (5,276 | ) | 512 | (4,764 | ) | |||||||
Balance at May 3, 2020 | (19,869 | ) | 518 | (19,351 | ) | |||||||
Foreign currency translation adjustments | 6,737 | — | 6,737 | |||||||||
Change in fair value of derivative financial instruments | — | (200 | ) | (200 | ) | |||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (107 | ) | (107 | ) | |||||||
Other comprehensive income (loss) | 6,737 | (307 | ) | 6,430 | ||||||||
Balance at August 2, 2020 | $ | (13,132 | ) | $ | 211 | $ | (12,921 | ) | ||||
Foreign currency translation adjustments | (745 | ) | — | (745 | ) | |||||||
Change in fair value of derivative financial instruments | — | 54 | 54 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (231 | ) | (231 | ) | |||||||
Other comprehensive income (loss) | (745 | ) | (177 | ) | (922 | ) | ||||||
Balance at November 1, 2020 | $ | (13,877 | ) | $ | 34 | $ | (13,843 | ) | ||||
Balance at February 3, 2019 | $ | (11,259 | ) | $ | 186 | $ | (11,073 | ) | ||||
Foreign currency translation adjustments | (3,009 | ) | — | (3,009 | ) | |||||||
Change in fair value of derivative financial instruments | — | 204 | 204 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (67 | ) | (67 | ) | |||||||
Other comprehensive income (loss) | (3,009 | ) | 137 | (2,872 | ) | |||||||
Balance at May 5, 2019 | (14,268 | ) | 323 | (13,945 | ) | |||||||
Foreign currency translation adjustments | (1,251 | ) | — | (1,251 | ) | |||||||
Change in fair value of derivative financial instruments | — | (132 | ) | (132 | ) | |||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (160 | ) | (160 | ) | |||||||
Other comprehensive income (loss) | (1,251 | ) | (292 | ) | (1,543 | ) | ||||||
Balance at August 4, 2019 | $ | (15,519 | ) | $ | 31 | $ | (15,488 | ) | ||||
Foreign currency translation adjustments | 1,783 | — | 1,783 | |||||||||
Change in fair value of derivative financial instruments | — | 5 | 5 | |||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 | — | (8 | ) | (8 | ) | |||||||
Other comprehensive income (loss) | 1,783 | (3 | ) | 1,780 | ||||||||
Balance at November 1, 2019 | $ | (13,736 | ) | $ | 28 | $ | (13,708 | ) |
1 | Refer to Note H for additional disclosures about reclassifications out of accumulated other comprehensive income and their corresponding effects on the respective line items in the Condensed Consolidated Statements of Earnings. |
Working capital and other assets | $ | 718,000 | ||
Property and equipment, net | 2,049,000 | |||
Intangible assets | 18,300,000 | |||
Liabilities | (6,886,000 | ) | ||
Total identifiable net assets acquired | $ | 14,181,000 | ||
Goodwill | 66,631,000 | |||
Total purchase consideration | $ | 80,812,000 |
In thousands | Thirteen weeks ended November 3, 2019 | Thirty-nine weeks ended November 3, 2019 | ||||||
Operating lease costs | $ | 68,909 | $ | 200,020 | ||||
Variable lease costs | 5,816 | 15,579 | ||||||
Total lease costs | $ | 74,725 | $ | 215,599 |
In thousands | Thirteen weeks ended November 3, 2019 | Thirty-nine weeks ended November 3, 2019 | ||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 71,136 | $ | 212,530 | ||||
Net additions to right-of-use assets | 38,311 | 120,704 |
In thousands | ||||
Remaining fiscal 2019 | $ | 66,826 | ||
Fiscal 2020 | 273,977 | |||
Fiscal 2021 | 240,772 | |||
Fiscal 2022 | 207,974 | |||
Fiscal 2023 | 174,827 | |||
Fiscal 2024 | 151,029 | |||
Fiscal 2025 and thereafter | 453,319 | |||
Total lease payments | 1,568,724 | |||
Less interest | (215,791 | ) | ||
Total operating lease liabilities | 1,352,933 | |||
Less current operating lease liabilities | (225,530 | ) | ||
Total non-current operating lease liabilities | $ | 1,127,403 |
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 |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
Comparable brand revenue growth (decline) | November 3, 2019 | October 28, 2018 | November 3, 2019 | October 28, 2018 | ||||||||||||
Pottery Barn | 3.4 | % | 1.4 | % | 3.1 | % | 2.0 | % | ||||||||
West Elm | 14.1 | % | 8.3 | % | 14.5 | % | 8.9 | % | ||||||||
Williams Sonoma | (2.1 | %) | 2.1 | % | (1.6 | %) | 3.1 | % | ||||||||
Pottery Barn Kids and Teen | 4.0 | % | 0.0 | % | 3.1 | % | 3.4 | % | ||||||||
Total 1 | 5.5 | % | 3.1 | % | 5.2 | % | 4.4 | % |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
Comparable brand revenue growth (decline) | November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | ||||||||||||
Pottery Barn | 24.1 | % | 3.4 | % | 10.9 | % | 3.1 | % | ||||||||
West Elm | 21.8 | % | 14.1 | % | 11.4 | % | 14.5 | % | ||||||||
Williams Sonoma | 30.4 | % | (2.1 | %) | 21.9 | % | (1.6 | %) | ||||||||
Pottery Barn Kids and Teen | 23.8 | % | 4.0 | % | 12.7 | % | 3.1 | % | ||||||||
Total 1 | 24.4 | % | 5.5 | % | 13.1 | % | 5.2 | % |
1 | Total comparable brand revenue growth includes the results of Rejuvenation and Mark and Graham. |
Store Count | Average Leased Square Footage Per Store | |||||||||||||||||||||||||||
August 4, 2019 | Openings | Closings | November 3, 2019 | October 28, 2018 | November 3, 2019 | October 28, 2018 | ||||||||||||||||||||||
Williams Sonoma | 218 | — | — | 218 | 226 | 6,900 | 6,800 | |||||||||||||||||||||
Pottery Barn | 205 | — | — | 205 | 205 | 14,400 | 13,900 | |||||||||||||||||||||
West Elm | 112 | 2 | — | 114 | 112 | 13,100 | 13,200 | |||||||||||||||||||||
Pottery Barn Kids | 78 | 1 | — | 79 | 82 | 7,500 | 7,500 | |||||||||||||||||||||
Rejuvenation | 10 | — | — | 10 | 8 | 8,500 | 8,800 | |||||||||||||||||||||
Total | 623 | 3 | — | 626 | 633 | 10,600 | 10,300 | |||||||||||||||||||||
Store selling square footage at period-end | 4,154,000 | 4,084,000 | ||||||||||||||||||||||||||
Store leased square footage at period-end | 6,622,000 | 6,551,000 |
Store Count | Average Leased Square Footage Per Store | |||||||||||||||||||||||||||
August 2, 2020 1 | Openings 2 | Closings 2 | November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | ||||||||||||||||||||||
Williams Sonoma | 210 | 1 | (1 | ) | 210 | 218 | 6,800 | 6,900 | ||||||||||||||||||||
Pottery Barn | 201 | 1 | (1 | ) | 201 | 205 | 14,400 | 14,400 | ||||||||||||||||||||
West Elm | 121 | 2 | (1 | ) | 122 | 114 | 13,100 | 13,100 | ||||||||||||||||||||
Pottery Barn Kids | 72 | — | (1 | ) | 71 | 79 | 7,800 | 7,500 | ||||||||||||||||||||
Rejuvenation | 10 | — | — | 10 | 10 | 8,500 | 8,500 | |||||||||||||||||||||
Total | 614 | 4 | (4 | ) | 614 | 626 | 10,700 | 10,600 | ||||||||||||||||||||
Store selling square footage at period-end | 4,143,000 | 4,154,000 | ||||||||||||||||||||||||||
Store leased square footage at period-end | 6,569,000 | 6,622,000 |
1 | Store counts as of August 2, 2020 includes stores temporarily closed due to COVID-19. |
2 | Store count data excludes temporary closures and re-openings of our stores due toCOVID-19. |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||||||||||||||||||
In thousands | November 3, 2019 | % Net Revenues | October 28, 2018 | % Net Revenues | November 3, 2019 | % Net Revenues | October 28, 2018 | % Net Revenues | ||||||||||||||||||||||||
Cost of goods sold 1 | $ | 924,300 | 64.1 | % | $ | 861,999 | 63.5 | % | $ | 2,608,054 | 64.3 | % | $ | 2,444,067 | 63.7 | % |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||||||||||||||||||
In thousands | November 1, 2020 | % Net Revenues | November 3, 2019 | % Net Revenues | November 1, 2020 | % Net Revenues | November 3, 2019 | % Net Revenues | ||||||||||||||||||||||||
Cost of goods sold 1 | $ | 1,058,953 | 60.0 | % | $ | 924,300 | 64.1 | % | $ | 2,819,471 | 62.8 | % | $ | 2,608,054 | 64.3 | % |
1 | Includes total occupancy expenses of year-to-date year-to-date |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||||||||||||||||||
In thousands | November 3, 2019 | % Net Revenues | October 28, 2018 | % Net Revenues | November 3, 2019 | % Net Revenues | October 28, 2018 | % Net Revenues | ||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 416,281 | 28.9 | % | $ | 400,600 | 29.5 | % | $ | 1,184,176 | 29.2 | % | $ | 1,155,990 | 30.1 | % |
Thirteen Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||||||||||||||||||
In thousands | November 1, 2020 | % Net Revenues | November 3, 2019 | % Net Revenues | November 1, 2020 | % Net Revenues | November 3, 2019 | % Net Revenues | ||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 430,979 | 24.4 | % | $ | 416,281 | 28.9 | % | $ | 1,162,435 | 25.9 | % | $ | 1,184,176 | 29.2 | % |
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 | ||||||||||||
August 5, 2019 – September 1, 2019 | 193,942 | $ | 65.14 | 193,942 | $ | 639,050,000 | ||||||||||
September 2, 2019 – September 29, 2019 | 186,285 | $ | 66.37 | 186,285 | $ | 626,687,000 | ||||||||||
September 30, 2019 – November 3, 2019 | 230,122 | $ | 67.73 | 230,122 | $ | 611,101,000 | ||||||||||
Total | 610,349 | $ | 66.49 | 610,349 | $ | 611,101,000 |
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 | ||||||||||||
August 3, 2020 – August 30, 2020 | — | — | — | $ | 574,982,000 | |||||||||||
August 31, 2020 – September 27, 2020 | — | — | — | $ | 574,982,000 | |||||||||||
September 28, 2020 – November 1, 2020 | 1,119,335 | $ | 97.42 | 1,119,335 | $ | 465,934,000 | ||||||||||
Total | 1,119,335 | $ | 97.42 | 1,119,335 | $ | 465,934,000 |
1 | Excludes shares withheld for employee taxes upon vesting of stock-based awards. |
Exhibit Number | Exhibit Description | |||
10.1* | ||||
10.2* | ||||
10.3* | ||||
31.1* | ||||
31.2* | ||||
32.1* | ||||
32.2* | ||||
101* | ||||
The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended November | ||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted under Exhibit 101). |
* | Filed herewith. |
WILLIAMS-SONOMA, INC. | ||
By: | ||
/s/ Julie Whalen | ||
Julie Whalen | ||
Duly Authorized Officer and Chief Financial Officer |