Exhibit 99.1
WILLIAMS-SONOMA, INC.
3250 Van Ness Avenue
San Francisco, CA 94109
| | |
| | CONTACT: |
| | Julie P. Whalen |
| | EVP, Chief Financial Officer |
| | (415) 616-8524 |
| |
| | Gabrielle L. Rabinovitch |
| | Vice President, Investor Relations |
| | (415) 616-7727 |
PRESS RELEASE
Williams-Sonoma, Inc. announces second quarter 2014 results
Net revenues grow 5.8%, operating margin expands to 8.2%
EPS increases to $0.53
San Francisco, CA, August 27, 2014 – Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the second fiscal quarter ended August 3, 2014 (“Q2 14”) versus the second fiscal quarter ended August 4, 2013 (“Q2 13”).
2nd QUARTER 2014 RESULTS
| | - | Q2 14 net revenues grew 5.8% to $1.039 billion versus $982 million in Q2 13 with comparable brand revenue growth of 5.7%. |
| | - | Q2 14 operating income grew 9.3% to $85 million and operating margin increased to 8.2% versus 8.0% in Q2 13. |
| | - | Q2 14 diluted earnings per share (“EPS”) grew 8.2% to $0.53 from $0.49 in Q2 13. |
| | - | Cash returned to stockholders totaled $90 million, comprising $59 million in stock repurchases and $31 million in dividends. |
Laura Alber, President and Chief Executive Officer, commented, “We are pleased to have delivered another quarter of solid performance, once again demonstrating the competitive advantages resulting from our multi-brand, multi-channel business model.”
Alber continued, “We enter the second half of 2014 well-positioned across our brands from a marketing, merchandise offering, store and online experience standpoint. We remain focused on disciplined execution against our growth initiatives and a balanced approach to capital allocation to continue to drive shareholder value.”
Comparable brand revenue growth in Q2 14 increased 5.7% on top of 8.4% in Q2 13 as shown in the table below:
| | | | | | | | |
|
2nd Quarter Comparable Brand Revenue Growth by Concept* |
|
| | | Q2 14 | | | | | Q2 13 |
|
Pottery Barn | | | 4.4% | | | | | 9.9% |
Williams-Sonoma | | | 3.4% | | | | | (0.4%) |
Pottery Barn Kids | | | 5.6% | | | | | 8.2% |
West Elm | | | 16.7% | | | | | 16.5% |
PBteen | | | (1.0%) | | | | | 16.3% |
|
Total | | | 5.7% | | | | | 8.4% |
|
* See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue growth. |
Direct-to-customer (“DTC”) net revenues in Q2 14 increased 9.4% to $523 million from $478 million in Q2 13, primarily driven by West Elm, Pottery Barn, Williams-Sonoma, and Pottery Barn Kids. DTC net revenues generated 50% of total company net revenues in Q2 14, compared to 49% in Q2 13.
Retail net revenues in Q2 14 increased 2.4% to $517 million from $505 million in Q2 13, primarily driven by West Elm and Pottery Barn, partially offset by a decrease in Williams-Sonoma.
Operating margin in Q2 14 increased to 8.2% compared to 8.0% in Q2 13:
| | - | Gross margin was 36.8% versus 37.6% in Q2 13. |
| | - | Selling, general and administrative (“SG&A”) expenses were $297 million, or 28.6% of net revenues, versus $291 million, or 29.6% of net revenues, in Q2 13. |
EPS in Q2 14 increased 8.2% to $0.53 from $0.49 in Q2 13.
Merchandise inventories at the end of Q2 14 increased 21.4% to $895 million from $737 million at the end of Q2 13. Toward the end of Q2 13, we began taking ownership of our inventory earlier in the supply chain. Excluding the impact of this year-over-year additional inventory in transit, Q2 14 merchandise inventories increased 17.0% on a comparable basis.
The effective income tax rate in Q2 14 was 40.5% versus 37.5% in Q2 13, reflecting certain unfavorable income tax matters.
STOCK REPURCHASE PROGRAM
During Q2 14, we repurchased 847,946 shares of common stock at an average cost of $69.28 per share and a total cost of approximately $59 million. As of August 3, 2014, there was approximately $399 million remaining under the $750 million stock repurchase program announced in March 2013.
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FISCAL YEAR 2014 FINANCIAL GUIDANCE
3rd Quarter 2014 Guidance
| | - | Net revenues in the third quarter of fiscal 2014 (“Q3 14”) are expected to be in the range of $1.100 billion to $1.130 billion. |
| | - | Comparable brand revenue growth in Q3 14 is expected to be in the range of 4% to 6%. |
| | - | Diluted EPS in Q3 14 is expected to be in the range of $0.58 to $0.63. |
Fiscal Year 2014 Guidance
| | | | | | |
| | | |
| | | Financial Highlights | | |
| | Total Net Revenues (millions) | | $4,645 – $4,725 | |
| | Comparable Brand Revenue Growth | | 5 – 7% | |
| | Operating Margin | | 10.2 – 10.4% | |
| | Diluted EPS | | $3.07 – $3.17 | |
| | Income Tax Rate | | 38.3 – 38.8% | |
| | Capital Spending (millions) | | $200 – $220 | |
| | Depreciation and Amortization (millions) | | $160 – $170 | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | |
|
Store Opening and Closing Guidance by Retail Concept* |
| | | FY 2013 ACT | | | FY 2014 GUID |
|
| | | Total | | | | | New | | | | | Close | | | | | End |
|
Williams-Sonoma | | | 248 | | | | | | 5 | | | | | | (14 | ) | | | | 239 |
Pottery Barn | | | 194 | | | | | | 7 | | | | | | (5 | ) | | | | 196 |
Pottery Barn Kids | | | 81 | | | | | | 9 | | | | | | (5 | ) | | | | 85 |
West Elm | | | 58 | | | | | | 11 | | | | | | - | | | | | 69 |
Rejuvenation | | | 4 | | | | | | 1 | | | | | | - | | | | | 5 |
|
Total | | | 585 | | | | | | 33 | | | | | | (24 | ) | | | | 594 |
|
* Included in the FY 13 numbers above are 5 stores in Australia (2 West Elm, 1 Williams-Sonoma, 1 Pottery Barn and 1 Pottery Barn Kids) and 1 West Elm store in the UK. Eight additional Australian stores are included in FY 14 guidance. |
CONFERENCE CALL AND WEBCAST INFORMATION
Williams-Sonoma, Inc. will host a live conference call today, August 27, 2014, at 2:00 PM (PT). The call, hosted by Laura Alber, President and Chief Executive Officer, will be open to the general public via live webcast and can be accessed atwww.williams-sonomainc.com/webcast. A replay of the webcast will be available atwww.williams-sonomainc.com/webcast.
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SEC REGULATION G— NON-GAAP INFORMATION
This press release includes non-GAAP diluted EPS. This non-GAAP financial measure excludes the impact of employee separation charges in Q1 13 and FY 13. We have reconciled this non-GAAP financial measure with the most directly comparable GAAP financial measure in Exhibit 1. We believe that this non-GAAP financial measure provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of our quarterly FY 14 actual results and FY 14 guidance on a comparable basis with prior periods. Our management uses this non-GAAP financial measure in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. This non-GAAP measure should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include statements relating to: our competitive advantages; the execution of our growth initiatives; our approach to capital allocation; our future financial guidance, including Q3 14 and FY 2014 guidance; our three-year stock repurchase program; and our proposed store openings and closures.
The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: accounting adjustments as we close our books for Q2 14; continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; new interpretations of or changes to current accounting rules; our ability to anticipate consumer preferences and buying trends; dependence on timely introduction and customer acceptance of our merchandise; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays in store openings; competition from companies with concepts or products similar to ours; timely and effective sourcing of merchandise from our foreign and domestic vendors and delivery of merchandise through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; successful catalog management, including timing, sizing and merchandising; uncertainties in e-marketing, infrastructure and regulation; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; challenges associated with our increasing global presence; dependence on external funding sources for operating capital; disruptions in the financial markets; our ability to control employment, occupancy and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and market conditions and events, including war, conflict or acts of terrorism; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 2, 2014, and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.
ABOUT WILLIAMS-SONOMA, INC.
Williams-Sonoma, Inc. is a specialty retailer of high-quality products for the home. These products, representing eight distinct merchandise strategies – Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, Rejuvenation, and Mark and Graham – are marketed throughe-commerce websites, direct mail catalogs and 589 stores. Williams-Sonoma, Inc. currently operates in the United States, Canada, Australia and the United Kingdom, offers international shipping to customers worldwide, and has unaffiliated franchisees that operate stores in the Middle East and the Philippines.
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Williams-Sonoma, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
Thirteen weeks ended August 3, 2014 and August 4, 2013
(Dollars and shares in thousands, except per share amounts)
| | | | | | | | | | | | | | | | |
| | | 2nd Quarter | |
| | | 2014 | | | 2013 | |
| | | $ | | | % of
Revenues | | | $ | | | % of
Revenues | |
Direct-to-customer net revenues | | $ | 522,589 | | | | 50.3 | % | | $ | 477,657 | | | | 48.6 | % |
Retail net revenues | | | 516,513 | | | | 49.7 | | | | 504,552 | | | | 51.4 | |
| | | | | | | | | | | | | | | | |
Net revenues | | | 1,039,102 | | | | 100.0 | | | | 982,209 | | | | 100.0 | |
Cost of goods sold | | | 657,004 | | | | 63.2 | | | | 613,285 | | | | 62.4 | |
| | | | | | | | | | | | | | | | |
Gross profit | | | 382,098 | | | | 36.8 | | | | 368,924 | | | | 37.6 | |
Selling, general and administrative expenses | | | 296,762 | | | | 28.6 | | | | 290,838 | | | | 29.6 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 85,336 | | | | 8.2 | | | | 78,086 | | | | 8.0 | |
Interest expense (income), net | | | 40 | | | | — | | | | (125 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Earnings before income taxes | | | 85,296 | | | | 8.2 | | | | 78,211 | | | | 8.0 | |
Income taxes | | | 34,549 | | | | 3.3 | | | | 29,292 | | | | 3.0 | |
| | | | | | | | | | | | | | | | |
Net earnings | | $ | 50,747 | | | | 4.9 | % | | $ | 48,919 | | | | 5.0 | % |
| | | | | | | | | | | | | | | | |
Earnings per share (EPS): | | | | | | | | | | | | | | | | |
Basic | | $ | 0.54 | | | | | | | $ | 0.50 | | | | | |
Diluted | | $ | 0.53 | | | | | | | $ | 0.49 | | | | | |
Shares used in calculation of EPS: | | | | | | | | | | | | | | | | |
Basic | | | 93,979 | | | | | | | | 96,892 | | | | | |
Diluted | | | 95,839 | | | | | | | | 98,957 | | | | | |
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Williams-Sonoma, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
Twenty-six weeks ended August 3, 2014 and August 4, 2013
(Dollars and shares in thousands, except per share amounts)
| | | | | | | | | | | | | | | | |
| | | Year-to-Date | |
| | | 2014 | | | 2013 | |
| | | $ | | | % of
Revenues | | | $ | | | % of
Revenues | |
Direct-to-customer net revenues | | $ | 1,013,878 | | | | 50.4 | % | | $ | 896,741 | | | | 48.0 | % |
Retail net revenues | | | 999,554 | | | | 49.6 | | | | 973,276 | | | | 52.0 | |
| | | | | | | | | | | | | | | | |
Net revenues | | | 2,013,432 | | | | 100.0 | | | | 1,870,017 | | | | 100.0 | |
Cost of goods sold | | | 1,262,926 | | | | 62.7 | | | | 1,166,908 | | | | 62.4 | |
| | | | | | | | | | | | | | | | |
Gross profit | | | 750,506 | | | | 37.3 | | | | 703,109 | | | | 37.6 | |
Selling, general and administrative expenses | | | 590,844 | | | | 29.3 | | | | 561,240 | | | | 30.0 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 159,662 | | | | 7.9 | | | | 141,869 | | | | 7.6 | |
Interest income, net | | | (29 | ) | | | — | | | | (314 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Earnings before income taxes | | | 159,691 | | | | 7.9 | | | | 142,183 | | | | 7.6 | |
Income taxes | | | 62,782 | | | | 3.1 | | | | 53,798 | | | | 2.9 | |
| | | | | | | | | | | | | | | | |
Net earnings | | $ | 96,909 | | | | 4.8 | % | | $ | 88,385 | | | | 4.7 | % |
| | | | | | | | | | | | | | | | |
Earnings per share (EPS): | | | | | | | | | | | | | | | | |
Basic | | $ | 1.03 | | | | | | | $ | 0.91 | | | | | |
Diluted | | $ | 1.01 | | | | | | | $ | 0.89 | | | | | |
Shares used in calculation of EPS: | | | | | | | | | | | | | | | | |
Basic | | | 94,010 | | | | | | | | 97,470 | | | | | |
Diluted | | | 95,714 | | | | | | | | 99,365 | | | | | |
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Williams-Sonoma, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(Dollars in thousands)
| | | | | | | | | | | | |
| | | Aug. 3,
2014 | | | Feb. 2,
2014 | | | Aug. 4,
2013 | |
Assets | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 70,574 | | | $ | 330,121 | | | $ | 205,364 | |
Restricted cash | | | — | | | | 14,289 | | | | 16,967 | |
Accounts receivable, net | | | 69,653 | | | | 60,330 | | | | 62,808 | |
Merchandise inventories, net | | | 894,860 | | | | 813,160 | | | | 736,871 | |
Prepaid catalog expenses | | | 39,072 | | | | 33,556 | | | | 37,266 | |
Prepaid expenses | | | 55,892 | | | | 35,309 | | | | 61,725 | |
Deferred income taxes, net | | | 121,527 | | | | 121,486 | | | | 99,699 | |
Other assets | | | 9,772 | | | | 10,852 | | | | 11,029 | |
| | | | | | | | | | | | |
Total current assets | | | 1,261,350 | | | | 1,419,103 | | | | 1,231,729 | |
| | | | | | | | | | | | |
Property and equipment, net | | | 849,255 | | | | 849,293 | | | | 829,951 | |
Non-current deferred income taxes, net | | | 856 | | | | 13,824 | | | | 7,509 | |
Other assets, net | | | 52,087 | | | | 54,514 | | | | 54,989 | |
| | | | | | | | | | | | |
Total assets | | $ | 2,163,548 | | | $ | 2,336,734 | | | $ | 2,124,178 | |
| | | | | | | | | | | | |
Liabilities and stockholders’ equity | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | |
Accounts payable | | $ | 336,470 | | | $ | 404,791 | | | $ | 318,532 | |
Accrued salaries, benefits and other | | | 101,818 | | | | 138,181 | | | | 95,762 | |
Customer deposits | | | 251,146 | | | | 228,193 | | | | 225,822 | |
Income taxes payable | | | 14,604 | | | | 49,365 | | | | 2,955 | |
Current portion of long-term debt | | | 1,968 | | | | 1,785 | | | | 1,817 | |
Other liabilities | | | 44,713 | | | | 38,781 | | | | 35,531 | |
| | | | | | | | | | | | |
Total current liabilities | | | 750,719 | | | | 861,096 | | | | 680,419 | |
| | | | | | | | | | | | |
Deferred rent and lease incentives | | | 171,193 | | | | 157,856 | | | | 170,817 | |
Long-term debt | | | — | | | | 1,968 | | | | 1,968 | |
Other long-term obligations | | | 63,227 | | | | 59,812 | | | | 51,599 | |
| | | | | | | | | | | | |
Total liabilities | | | 985,139 | | | | 1,080,732 | | | | 904,803 | |
| | | | | | | | | | | | |
Stockholders’ equity | | | 1,178,409 | | | | 1,256,002 | | | | 1,219,375 | |
| | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 2,163,548 | | | $ | 2,336,734 | | | $ | 2,124,178 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ADDITIONAL INFORMATION | | Store Count | | | Avg. Leased Square
Footage Per Store | |
| | | | | | | | |
| | | May 4,
2014 | | | Openings | | | Closings | | | Aug. 3,
2014 | | | Aug. 4,
2013 | | | Aug. 3,
2014 | | | Aug. 4,
2013 | |
| | | | | | | | |
Williams-Sonoma | | | 248 | | | | - | | | | (1 | ) | | | 247 | | | | 253 | | | | 6,600 | | | | 6,600 | |
Pottery Barn | | | 195 | | | | - | | | | - | | | | 195 | | | | 196 | | | | 13,700 | | | | 13,800 | |
Pottery Barn Kids | | | 84 | | | | 1 | | | | (1 | ) | | | 84 | | | | 86 | | | | 7,700 | | | | 8,000 | |
West Elm | | | 58 | | | | 1 | | | | - | | | | 59 | | | | 51 | | | | 14,000 | | | | 14,600 | |
Rejuvenation | | | 4 | | | | - | | | | - | | | | 4 | | | | 4 | | | | 13,200 | | | | 13,200 | |
| | | | | | | | |
Total | | | 589 | | | | 2 | | | | (2 | ) | | | 589 | | | | 590 | | | | 9,900 | | | | 9,900 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | May 4, 2014 | | | Aug. 3, 2014 | | | Aug. 4, 2013 | |
| | | | | | | | | | | | |
Total store selling square footage | | | 3,600,000 | | | | 3,598,000 | | | | 3,600,000 | |
Total store leased square footage | | | 5,850,000 | | | | 5,843,000 | | | | 5,863,000 | |
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Williams-Sonoma, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
Twenty-six weeks ended August 3, 2014 and August 4, 2013
(Dollars in thousands)
| | | | | | | | |
| | | Year-to-Date | |
| | | 2014 | | | 2013 | |
Cash flows from operating activities | | | | | | | | |
Net earnings | | $ | 96,909 | | | $ | 88,385 | |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | | | | | | | | |
Depreciation and amortization | | | 79,332 | | | | 73,832 | |
Loss on sale/disposal/impairment of assets | | | 952 | | | | 1,233 | |
Amortization of deferred lease incentives | | | (12,483 | ) | | | (12,621 | ) |
Deferred income taxes | | | (8,326 | ) | | | (6,937 | ) |
Tax benefit related to stock-based awards | | | 46,174 | | | | 11,733 | |
Excess tax benefit related to stock-based awards | | | (22,911 | ) | | | (5,173 | ) |
Stock-based compensation expense | | | 22,191 | | | | 18,472 | |
Other | | | 305 | | | | — | |
| | |
Changes in: | | | | | | | | |
Accounts receivable | | | (4,227 | ) | | | (1,284 | ) |
Merchandise inventories | | | (80,158 | ) | | | (97,653 | ) |
Prepaid catalog expenses | | | (5,516 | ) | | | (35 | ) |
Prepaid expenses and other assets | | | (18,043 | ) | | | (40,191 | ) |
Accounts payable | | | (60,527 | ) | | | 52,336 | |
Accrued salaries, benefits and other current and long-term liabilities | | | (28,981 | ) | | | (10,677 | ) |
Customer deposits | | | 22,767 | | | | 18,710 | |
Deferred rent and lease incentives | | | 17,516 | | | | 12,823 | |
Income taxes payable | | | (34,757 | ) | | | (38,890 | ) |
| | | | | | | | |
Net cash provided by operating activities | | | 10,217 | | | | 64,063 | |
| | | | | | | | |
| | |
Cash flows from investing activities: | | | | | | | | |
Purchases of property and equipment | | | (83,519 | ) | | | (97,777 | ) |
Restricted cash receipts (deposits) | | | 14,289 | | | | (912 | ) |
Other | | | 282 | | | | 1,274 | |
| | | | | | | | |
Net cash used in investing activities | | | (68,948 | ) | | | (97,415 | ) |
| | | | | | | | |
| | |
Cash flows from financing activities: | | | | | | | | |
Repurchase of common stock | | | (112,054 | ) | | | (131,006 | ) |
Payment of dividends | | | (63,996 | ) | | | (52,196 | ) |
Tax withholdings related to stock-based awards | | | (49,434 | ) | | | (11,135 | ) |
Excess tax benefit related to stock-based awards | | | 22,911 | | | | 5,173 | |
Net proceeds related to stock-based awards | | | 3,471 | | | | 6,541 | |
Repayments of long-term obligations | | | (1,785 | ) | | | (1,692 | ) |
Other | | | (6 | ) | | | — | |
| | | | | | | | |
Net cash used in financing activities | | | (200,893 | ) | | | (184,315 | ) |
| | | | | | | | |
| | |
Effect of exchange rates on cash and cash equivalents | | | 77 | | | | (1,524 | ) |
Net decrease in cash and cash equivalents | | | (259,547 | ) | | | (219,191 | ) |
Cash and cash equivalents at beginning of period | | | 330,121 | | | | 424,555 | |
| | | | | | | | |
Cash and cash equivalents at end of period | | $ | 70,574 | | | $ | 205,364 | |
| | | | | | | | |
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Exhibit 1
2nd Quarter Operating Margin By Segment*
($ in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | DTC | | | Retail | | | Unallocated | | | Total |
| | | Q2 14 | | | Q2 13 | | | Q2 14 | | | Q2 13 | | | Q2 14 | | | Q2 13 | | | Q2 14 | | | Q2 13 |
Net Revenues | | $ | 522,589 | | | $ | 477,657 | | | $ | 516,513 | | | $ | 504,552 | | | $ | - | | | $ | - | | | $ | 1,039,102 | | | $982,209 |
Operating Income/(Expense) | | | 120,612 | | | | 114,491 | | | | 37,058 | | | | 34,609 | | | | (72,334) | | | | (71,014) | | | | 85,336 | | | 78,086 |
Operating Margin | | | 23.1% | | | | 24.0% | | | | 7.2% | | | | 6.9% | | | | (7.0%) | | | | (7.2%) | | | | 8.2% | | | 8.0% |
Reconciliation of Quarterly and Fiscal Year Actual GAAP to Non-GAAP
Diluted Earnings Per Share
(Totals rounded to the nearest cent per diluted share)
| | | | | | | | | | | | | | |
|
| | | Q1 14 ACT | | | | Q2 14 ACT | | | | Q3 14 GUID | | | | FY 14 GUID |
|
2014 GAAP Diluted EPS | | $0.48 | | | | $0.53 | | | | $0.58 - $0.63 | | | | $3.07 - $3.17 |
|
| | | | | | | |
| | | | | | | | | | | | | | |
|
| | | Q1 13 ACT | | | | Q2 13 ACT | | | | Q3 13 ACT | | | | FY 13 ACT |
|
2013 GAAP Diluted EPS | | $0.40 | | | | $0.49 | | | | $0.58 | | | | $2.82 |
Impact of Employee Separation Charges(1) | | 0.02 | | | | - | | | | - | | | | 0.02 |
|
2013 Non-GAAP Diluted EPS Excluding Employee Separation Charges (2)** | | $0.41 | | | | $0.49 | | | | $0.58 | | | | $2.84 |
|
| * | See the Company’s 10-K and 10-Q filings for additional information on segment reporting and the definition of Operating Income/(Expense) and Operating Margin. |
| ** | Due to rounding to the nearest cent per diluted share, totals may not equal the sum of the line items in the table above. |
Notes:
| (1) | Impact of Employee Separation Charges – During Q1 13 and FY 13, we incurred charges of approximately $0.02 per diluted share associated with the previously announced retirement of the former President of the Williams-Sonoma brand. These charges were recorded within the unallocated segment. |
| (2) | SEC Regulation G – Non-GAAP Information – This table includes non-GAAP diluted EPS. We believe that this non-GAAP financial measure provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of our quarterly and FY 14 actual results and guidance on a comparable basis with prior periods. Our management uses this non-GAAP financial measure in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. This non-GAAP financial measure should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. |
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