Williams-Sonoma (WSM) 10-Q 14 Jun 19 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 05, 2019	Jun. 02, 2019
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 5, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	WILLIAMS SONOMA INC
Entity Central Index Key	0000719955
Current Fiscal Year End Date	--02-02
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Trading Symbol	WSM
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		78,603,366

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		May 05, 2019	Apr. 29, 2018
Net revenues	[1]	$ 1,241,132	$ 1,203,000
Cost of goods sold		796,801	770,836
Gross profit		444,331	432,164
Selling, general and administrative expenses		370,199	365,614
Operating income		74,132	66,550
Interest (income) expense, net		2,253	1,201
Earnings before income taxes		71,879	65,349
Income taxes		19,223	20,181
Net earnings		$ 52,656	$ 45,168
Basic earnings per share		$ 0.67	$ 0.54
Diluted earnings per share		$ 0.66	$ 0.54
Shares used in calculation of earnings per share:
Basic		78,683	83,392
Diluted		79,867	84,174
[1]	Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $86.6 million and $79.4 million for the thirteen weeks ended May 5, 2019 and April 29, 2018.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	May 05, 2019	Apr. 29, 2018
Net earnings	$ 52,656	$ 45,168
Other comprehensive income (loss):
Foreign currency translation adjustments	(3,009)	(1,145)
Change in fair value of derivative financial instruments, net of tax of $74 and $68	204	1,123
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $24 and $(3)	(67)	49
Comprehensive income	$ 49,784	$ 45,195

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	May 05, 2019	Apr. 29, 2018
Change in fair value of derivative financial instruments, tax	$ 74	$ 68
Reclassification adjustment for realized losses on derivative financial instruments, tax	$ 24	$ (3)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 05, 2019	Feb. 03, 2019	Apr. 29, 2018
Current assets
Cash and cash equivalents	$ 107,683	$ 338,954	$ 290,244
Accounts receivable, net	102,195	107,102	102,630
Merchandise inventories, net	1,155,427	1,124,992	1,052,892
Prepaid expenses	98,213	101,356	56,333
Other current assets	22,128	21,939	21,118
Total current assets	1,485,646	1,694,343	1,523,217
Property and equipment, net	916,030	929,635	926,320
Operating lease right-of-use assets	1,200,972
Deferred income taxes, net	34,215	44,055	58,842
Goodwill	85,357	85,382	18,811
Other long-term assets, net	66,145	59,429	129,715
Total assets	3,788,365	2,812,844	2,656,905
Current liabilities
Accounts payable	385,646	526,702	393,025
Accrued expenses	109,169	163,559	99,823
Gift card and other deferred revenue	291,839	290,445	256,534
Income taxes payable	24,384	21,461	72,036
Operating lease liabilities	227,427
Other current liabilities	75,750	72,645	61,403
Total current liabilities	1,114,215	1,074,812	882,821
Deferred rent and lease incentives	30,536	201,374	204,599
Long-term debt	299,670	299,620	299,472
Long-term operating lease liabilities	1,139,625
Other long-term liabilities	82,551	81,324	72,779
Total liabilities	2,666,597	1,657,130	1,459,671
Commitments and contingencies – See Note F
Stockholders' equity
Preferred stock: $.01 par value; 7,500 shares authorized; none issued
Common stock: $.01 par value; 253,125 shares authorized; 78,808, 78,813 and 83,222 shares issued and outstanding at May 5, 2019, February 3, 2019 and April 29, 2018, respectively	788	789	833
Additional paid-in capital	571,772	581,900	564,685
Retained earnings	564,127	584,333	638,774
Accumulated other comprehensive loss	(13,945)	(11,073)	(6,755)
Treasury stock, at cost: 14, 2 and 3 shares as of May 5, 2019, February 3, 2019 and April 29, 2018, respectively	(974)	(235)	(303)
Total stockholders' equity	1,121,768	1,155,714	1,197,234
Total liabilities and stockholders' equity	$ 3,788,365	$ 2,812,844	$ 2,656,905

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	May 05, 2019	Feb. 03, 2019	Apr. 29, 2018
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	7,500,000	7,500,000	7,500,000
Preferred stock, shares issued	0	0	0
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	253,125,000	253,125,000	253,125,000
Common stock, shares issued	78,808,000	78,813,000	83,222,000
Common stock, shares outstanding	78,808,000	78,813,000	83,222,000
Treasury stock, shares	14,000	2,000	3,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands		Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)		Treasury Stock
Beginning Balance (in shares) at Jan. 28, 2018			83,726,000
Beginning Balance at Jan. 28, 2018		$ 1,203,566	$ 837	$ 562,814	$ 647,422	$ (6,782)		$ (725)
Net earnings		45,168			45,168
Foreign currency translation adjustments		(1,145)				(1,145)
Change in fair value of derivative financial instruments, net of tax		1,123				1,123
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax		49				49	[1]
Conversion/release of stock-based awards, shares	[2]		228,000
Conversion/release of stock-based awards, value	[2]	(7,436)	$ 3	(7,213)				(226)
Repurchases of common stock, shares			(732,000)
Repurchases of common stock, value		(37,713)	$ (7)	(3,437)	(34,269)
Reissuance of treasury stock under stock-based compensation plans	[2]			(290)	(358)			648
Stock-based compensation expense		12,811		12,811
Dividends declared		(36,877)			(36,877)
Adoption of accounting pronouncements	[3]	17,688			17,688
Ending Balance (in shares) at Apr. 29, 2018			83,222,000
Ending Balance at Apr. 29, 2018		1,197,234	$ 833	564,685	638,774	(6,755)		(303)
Beginning Balance (in shares) at Feb. 03, 2019			78,813,000
Beginning Balance at Feb. 03, 2019		1,155,714	$ 789	581,900	584,333	(11,073)		(235)
Net earnings		52,656			52,656
Foreign currency translation adjustments		(3,009)				(3,009)
Change in fair value of derivative financial instruments, net of tax		204				204
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax		(67)				(67)	[1]
Conversion/release of stock-based awards, shares	[2]		571,000
Conversion/release of stock-based awards, value	[2]	(25,406)	$ 5	(25,298)				(113)
Repurchases of common stock, shares			(576,000)
Repurchases of common stock, value		(33,848)	$ (6)	(2,874)	(30,010)			(958)
Reissuance of treasury stock under stock-based compensation plans	[2]			(332)				332
Stock-based compensation expense		18,376		18,376
Dividends declared		(39,549)			(39,549)
Adoption of accounting pronouncements	[4]	(3,303)			(3,303)
Ending Balance (in shares) at May. 05, 2019			78,808,000
Ending Balance at May. 05, 2019		$ 1,121,768	$ 788	$ 571,772	$ 564,127	$ (13,945)		$ (974)
[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.
[2]	Amounts are shown net of shares withheld for employee taxes.
[3]	Primarily relates to our adoption of ASU 2014-09, Revenue from Contracts with Customers, in fiscal 2018.
[4]	Relates to our adoption of ASU 2016-02, Leases, in fiscal 2019. See Note A.

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	May 05, 2019	Apr. 29, 2018
Cash flows from operating activities:
Net earnings	$ 52,656	$ 45,168
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	46,838	47,873
(Gain) loss on disposal/impairment of assets	(323)	414
Amortization of deferred lease incentives	(2,306)	(6,724)
Non-cash lease expense	51,596
Deferred income taxes	(4,126)	(3,241)
Tax benefit related to stock-based awards	14,898	6,126
Stock-based compensation expense	18,529	12,889
Other	69	64
Changes in:
Accounts receivable	4,684	(9,556)
Merchandise inventories	(31,460)	2,388
Prepaid expenses and other assets	(4,914)	(4,399)
Accounts payable	(144,399)	(76,823)
Accrued expenses and other liabilities	(49,196)	(32,047)
Gift card and other deferred revenue	1,558	4,815
Deferred rent and lease incentives		10,004
Operating lease liabilities	(55,099)
Income taxes payable	2,915	13,818
Net cash (used in) provided by operating activities	(98,080)	10,769
Cash flows from investing activities:
Purchases of property and equipment	(36,148)	(34,029)
Other	107	120
Net cash used in investing activities	(36,041)	(33,909)
Cash flows from financing activities:
Repurchases of common stock	(33,848)	(37,713)
Payment of dividends	(36,868)	(34,081)
Tax withholdings related to stock-based awards	(25,406)	(7,438)
Net cash used in financing activities	(96,122)	(79,232)
Effect of exchange rates on cash and cash equivalents	(1,028)	2,480
Net decrease in cash and cash equivalents	(231,271)	(99,892)
Cash and cash equivalents at beginning of period	338,954	390,136
Cash and cash equivalents at end of period	$ 107,683	$ 290,244

FINANCIAL STATEMENTS - BASIS OF

FINANCIAL STATEMENTS - BASIS OF PRESENTATION	3 Months Ended
	May 05, 2019
FINANCIAL STATEMENTS - BASIS OF PRESENTATION	NOTE A. FINANCIAL STATEMENTS - BASIS OF PRESENTATION These financial statements include Williams-Sonoma, Inc. and its wholly owned subsidiaries (“we,” “us” or “our”). The Condensed Consolidated Balance Sheets as of May 5, 2019 and April 29, 2018, the Condensed Consolidated Statements of Earnings, the Condensed Consolidated Statements of Comprehensive Income, the Condensed Consolidated Statements of Stockholders’ Equity and the Condensed Consolidated Statements of Cash Flows for the thirteen weeks then ended, have been prepared by us, without audit. In our opinion, the financial statements include all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at the balance sheet dates and the results of operations for the thirteen weeks then ended. Intercompany transactions and accounts have been eliminated. The balance sheet as of February 3, 2019, presented herein, has been derived from our audited Consolidated Balance Sheet included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2019. The results of operations for the thirteen weeks ended May 5, 2019 are not necessarily indicative of the operating results of the full year. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. These financial statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2019. Reclassifications Certain amounts reported in our Condensed Consolidated Balance Sheet as of April 29, 2018 have been reclassified in order to conform to the current period presentation. These reclassifications impacted goodwill and other long-term assets. There was no change to total current assets as a result of these reclassifications. New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases, which requires lessees to recognize a right-of-use asset and an operating lease liability for virtually all leases. This ASU, as amended, was effective for us beginning in the first quarter of fiscal 2019. The adoption of the ASU resulted in an increase in total long-term assets and total liabilities of approximately $1.2 $1.4 $0.2 $1.2 3.3 In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815), In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Accordingly, the amendments require an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. We do not expect the adoption of this ASU to have a material impact on our financial condition, results of operations or cash flows.

BORROWING ARRANGEMENTS

BORROWING ARRANGEMENTS	3 Months Ended
	May 05, 2019
BORROWING ARRANGEMENTS	NOTE B. BORROWING ARRANGEMENTS Credit Facility We have a credit facility which provides for a $500,000,000 unsecured revolving line of credit (“revolver”) and a $300,000,000 unsecured term loan facility (“term loan”). The revolver may be used to borrow revolving loans or request the issuance of letters of credit. We may, upon notice to the administrative agent, request existing or new lenders to increase the revolver by up to $250,000,000, at such lenders’ option, to provide for a total of $750,000,000 of unsecured revolving credit. The revolver matures on January 8, 2023, During the first quarter of fiscal 2019 and fiscal 2018, we had no borrowings under the revolver. Additionally, as of May 5, 2019, $11,716,000 in issued but undrawn standby letters of credit was outstanding under the credit facility. The standby letters of credit were issued to secure the liabilities associated with workers’ compensation and other insurance programs. As of May 5, 2019, we had $300,000,000 outstanding under our term loan (at a weighted average interest rate of 3.61%). The term loan matures on January 8, 2021 The interest rates under the credit facility are variable, and may be elected by us as: (i) the London Interbank Offer Rate plus an applicable margin based on our leverage ratio ranging from 0.91% to 1.775% for a revolver borrowing, and 1.0% to 2.0% for the term loan; or (ii) a base rate as defined in the credit facility plus an applicable margin ranging from 0% to 0.775% for a revolver borrowing, and 0% to 1.0% for the term loan. As of May 5, 2019, we were in compliance with our financial covenants under the credit facility and, based on current projections, we expect to remain in compliance throughout the next 12 months. Letter of Credit Facilities We have three unsecured letter of credit reimbursement facilities for a total of $70,000,000, each of which matures on August 24, 2019 January 21, 2020

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	May 05, 2019
STOCK-BASED COMPENSATION	NOTE C. STOCK-BASED COMPENSATION Equity Award Programs Our Amended and Restated 2001 Long-Term Incentive Plan (the “Plan”) provides for grants of incentive stock options, nonqualified stock options, stock-settled stock appreciation rights (collectively, “option awards”), restricted stock awards, restricted stock units (including those that are performance-based), deferred stock awards (collectively, “stock awards”) and dividend equivalents up to an aggregate of 36,570,000 shares. As of May 5, 2019, there were approximately 4,927,000 shares available for future grant. Awards may be granted under the Plan to our officers, employees and non-employee members of the board of directors of the company (the “Board”) or any parent or subsidiary. Shares issued as a result of award exercises or releases are primarily funded with the issuance of new shares. Option Awards Annual grants of option awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven four Stock Awards Annual grants of stock awards are limited to 1,000,000 shares on a per person basis and have a maximum term of seven four three one Stock-Based Compensation Expense During the thirteen weeks ended May 5, 2019 and April 29, 2018, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $18,529,000 and $ 12,889 Restricted Stock Units The following table summarizes our restricted stock unit activity during the thirteen weeks ended May 5, 2019: Shares Balance at February 3, 2019 3,012,923 Granted 953,459 Granted, with vesting subject to performance conditions 235,156 Released (1,020,670 ) Cancelled (73,482 ) Balance at May 5, 2019 3,107,386 Vested plus expected to vest at May 5, 2019 2,506,509

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	May 05, 2019
EARNINGS PER SHARE	NOTE D. EARNINGS PER SHARE Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding and common stock equivalents outstanding for the period. Common stock equivalents consist of shares subject to stock-based awards with exercise prices less than or equal to the average market price of our common stock for the period, to the extent their inclusion would be dilutive. The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: In thousands, except per share amounts Net Earnings Weighted Average Shares Earnings Per Share Thirteen weeks ended May 5, 2019 Basic $ 52,656 78,683 $ 0.67 Effect of dilutive stock-based awards 1,184 Diluted $ 52,656 79,867 $ 0.66 Thirteen weeks ended April 29, 2018 Basic $ 45,168 83,392 $ 0.54 Effect of dilutive stock-based awards 782 Diluted $ 45,168 84,174 $ 0.54 Stock-based awards of 11,400 and 29,997 were excluded from the computation of diluted earnings per share for the thirteen weeks ended May 5, 2019 and April 29, 2018, respectively, as their inclusion would be anti-dilutive.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	May 05, 2019
SEGMENT REPORTING	NOTE E. SEGMENT REPORTING We identify our operating segments according to how our business activities are managed and evaluated. Prior to fiscal 2019, we managed e-commerce merchandise strategies, which included the results of Williams Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, Pottery Barn Teen, Williams Sonoma Home, Rejuvenation and Mark and Graham, separately from our retail business. Because these merchandising strategies shared similar economic and other qualitative characteristics, they had been aggregated into the e-commerce reportable segment. Also, prior to fiscal 2019, we managed retail merchandise strategies, which included the results of our retail stores for Williams Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Rejuvenation separately from our e-commerce business. Because these merchandising strategies shared similar economic and other qualitative characteristics, they had been aggregated into the retail reportable segment. Beginning in fiscal 2019, due to the convergence of our e-commerce and retail businesses and to better align with how we manage our omni-channel business, we have combined the results of our e-commerce and retail merchandise strategies at the overall brand level. Each of our brands are operating segments. Because they share similar economic and other qualitative characteristics, we have aggregated our operating segments into a single reportable segment. The following table summarizes our net revenues by brand for the thirteen weeks ended May 5, 2019 and April 29, 2018. We have updated fiscal 2018 results to conform with the current year presentation. Thirteen Weeks Ended In thousands May 5, 2019 April 29, 2018 Pottery Barn $ 492,126 $ 490,372 West Elm 309,483 273,349 Williams Sonoma 194,894 200,977 Pottery Barn Kids and Teen 177,046 180,396 Other 1 67,583 57,906 Total 2 $ 1,241,132 $ 1,203,000 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 $86.6 million and $79.4 million for the thirteen weeks ended May 5, 2019 and April 29, 2018. Long-lived assets by geographic location are as follows: In thousands May 5, 2019 April 29, 2018 U.S. $ 2,136,000 $ 1,074,177 International 166,719 59,511 Total $ 2,302,719 $ 1,133,688

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	May 05, 2019
COMMITMENTS AND CONTINGENCIES	NOTE F. COMMITMENTS AND CONTINGENCIES We are involved in lawsuits, claims and proceedings incident to the ordinary course of our business. These disputes, which are not currently material, are increasing in number as our business expands and our company grows. We review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. In view of the inherent difficulty of predicting the outcome of these matters, it may not be possible to determine whether any loss is probable or to reasonably estimate the amount of the loss until the case is close to resolution, in which case no reserve is established until that time. Any claims against us, whether meritorious or not, could result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits, claims and proceedings cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will not have a material adverse effect on our Condensed Consolidated Financial Statements taken as a whole.

STOCK REPURCHASE PROGRAM AND DI

STOCK REPURCHASE PROGRAM AND DIVIDENDS	3 Months Ended
	May 05, 2019
STOCK REPURCHASE PROGRAM AND DIVIDENDS	NOTE G. STOCK REPURCHASE PROGRAM AND DIVIDENDS Stock Repurchase Program During the thirteen weeks ended May 5, 2019, we repurchased 593,096 shares of our common stock at an average cost of $57.07 per share for a total cost of approximately $33,848,000. In March 2019, our Board of Directors authorized an increase in our current stock repurchase program by an additional $500,000,000. As of May 5, 2019, we held treasury stock of $974,000 that represents the cost of shares available for issuance that is intended to satisfy future stock-based award settlements in certain foreign jurisdictions. During the thirteen weeks ended April 29, 2018, we repurchased 731,930 shares of our common stock at an average cost of $51.53 per share for a total cost of approximately $37,713,000. Stock repurchases under our program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. Dividends We declared cash dividends of $0.48 and $0.43 per common share during the thirteen weeks ended May 5, 2019 and April 29, 2018, respectively. In March 2019, our Board of Directors authorized a $0.05, or 11.6%, increase in our quarterly cash dividend, from $0.43 to $0.48 per common share, subject to capital availability. Our quarterly cash dividend may be limited or terminated at any time.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	May 05, 2019
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE H. DERIVATIVE FINANCIAL INSTRUMENTS We have businesses in Canada, Australia and the United Kingdom, and operations throughout Asia and Europe, which expose us to market risk associated with foreign currency exchange rate fluctuations. Substantially all of our purchases and sales are denominated in U.S. dollars, which limits our exposure to this risk. However, some of our foreign operations have a functional currency other than the U.S. dollar. To mitigate this risk, we hedge a portion of our foreign currency exposure with foreign currency forward contracts in accordance with our risk management policies. We do not enter into such contracts for speculative purposes. The assets or liabilities associated with these derivative financial instruments are measured at fair value and recorded in either other current or long-term assets or other current or long-term liabilities. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on whether the derivative financial instrument is designated as a hedge and qualifies for hedge accounting in accordance with Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging . Cash Flow Hedges We enter into foreign currency forward contracts designated as cash flow hedges (to sell Canadian dollars and purchase U.S. dollars) for forecasted inventory purchases in U.S. dollars by our Canadian subsidiary. These hedges have terms of up to 18 months. All hedging relationships are formally documented, and the forward contracts are designed to mitigate foreign currency exchange risk on hedged transactions. We record the effective portion of changes in the fair value of our cash flow hedges in other comprehensive income (“OCI”) until the earlier of when the hedged forecasted inventory purchase occurs or the respective contract reaches maturity. Subsequently, as the inventory is sold to the customer, we reclassify amounts previously recorded in OCI to cost of goods sold. Changes in the fair value of the forward contract related to interest charges (or forward points) are excluded from the assessment and measurement of hedge effectiveness and are recorded in cost of goods sold. Based on the rates in effect as of May 5, 2019, we expect to reclassify a net pre-tax gain of approximately $439,000 from OCI to cost of goods sold over the next 12 months. We also enter into non-designated foreign currency forward contracts (to sell Australian dollars and British pounds and purchase U.S. dollars) to reduce the exchange risk associated with our assets and liabilities denominated in a foreign currency. Any foreign exchange gains or losses related to these contracts are recognized in selling, general and administrative expenses. As of May 5, 2019 and April 29, 2018, we had foreign currency forward contracts outstanding (in U.S. dollars) with notional values as follows: In thousands May 5, 2019 April 29, 2018 Contracts designated as cash flow hedges $ 10,800 $ 28,500 Contracts not designated as cash flow hedges $ — $ 52,276 Hedge effectiveness is evaluated prospectively at inception, on an ongoing basis, as well as retrospectively using regression analysis. Any measurable ineffectiveness of the hedge is recorded in selling, general and administrative expenses. No gain or loss was recognized for cash flow hedges due to hedge ineffectiveness and all hedges were deemed effective for assessment purposes for the thirteen weeks ended May 5, 2019 and April 29, 2018. The effect of derivative instruments in our Condensed Consolidated Financial Statements during the thirteen weeks ended May 5, 2019 and April 29, 2018, pre-tax, was as follows: In thousands May 5, 2019 April 29, 2018 Net gain (loss) recognized in OCI $ 278 $ 1,191 May 5, 2019 April 29, 2018 In thousands Cost of goods Selling, Cost of goods Selling, Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded $ 796,801 $ 370,199 $ 770,836 $ 365,614 Gain (loss) recognized in income Derivatives designated as cash flow hedges $ 108 — $ (52 ) (17 ) Derivatives not designated as hedging instruments — $ (6 ) — $ 2,760 The fair values of our derivative financial instruments are presented below according to their classification in our Condensed Consolidated Balance Sheets. All fair values were measured using Level 2 inputs as defined by the fair value hierarchy described in Note I. In thousands May 5, 2019 April 29, 2018 Derivatives designated as cash flow hedges: Other current assets $ 475 $ 460 Other long-term assets $ — $ 79 Other current liabilities $ — $ (51 ) Derivatives not designated as hedging instruments: Other current assets $ — $ 36 We record all derivative assets and liabilities on a gross basis. They do not meet the balance sheet netting criteria as discussed in ASC 210, Balance Sheet , because we do not have master netting agreements established with our derivative counterparties that would allow for net settlement.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	May 05, 2019
FAIR VALUE MEASUREMENTS	NOTE I. FAIR VALUE MEASUREMENTS Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy established by ASC 820, Fair Value Measurement , which defines three levels of inputs that may be used to measure fair value, as follows: • Level 1: inputs which include quoted prices in active markets for identical assets or liabilities; • Level 2: inputs which include observable inputs other than Level 1 inputs, such as quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and • Level 3: inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. The fair values of our cash and cash equivalents are based on Level 1 inputs, which include quoted prices in active markets for identical assets. Long-term Debt As of May 5, 2019, the fair value of our long-term debt approximates its carrying value and is based on observable Level 2 inputs, primarily market interest rates for instruments with similar maturities. Foreign Currency Derivatives and Hedging Instruments We use the income approach to value our derivatives using observable Level 2 market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the assets and liabilities, which include interest rates and credit risk ratings. We use mid-market pricing as a practical expedient for fair value measurements. Key inputs for foreign currency derivatives are the spot rates, forward rates, interest rates and credit derivative market rates. The counterparties associated with our foreign currency forward contracts are large credit-worthy financial institutions, and the derivatives transacted with these entities are relatively short in duration, therefore, we do not consider counterparty concentration and non-performance to be material risks at this time. Both we and our counterparties are expected to perform under the contractual terms of the instruments. None of the derivative contracts entered into are subject to credit risk-related contingent features or collateral requirements. Long-lived Assets We review the carrying value of all long-lived assets for impairment, primarily at an individual store level, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We measure property and equipment at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. We measure right-of-use assets on a nonrecurring basis using Level 2 unobservable inputs that are corroborated by market data. Where Level 2 inputs are not readily available, we use Level 3 inputs. Fair value of these long-lived assets is based on the present value of estimated future cash flows using a discount rate commensurate with the risk. There were no transfers between Level 1, 2 or 3 categories during the thirteen weeks ended May 5, 2019 or April 29, 2018.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	3 Months Ended
	May 05, 2019
ACCUMULATED OTHER COMPREHENSIVE INCOME	NOTE J. ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: In thousands Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at February 3, 2019 $ (11,259 ) $ 186 $ (11,073 ) Foreign currency translation adjustments (3,009 ) — (3,009 ) Change in fair value of derivative financial instruments — 204 204 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (67 ) (67 ) Other comprehensive income (loss) (3,009 ) 137 (2,872 ) Balance at May 5, 2019 $ (14,268 ) $ 323 $ (13,945 ) 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 1 — 49 49 Other comprehensive income (loss) (1,145 ) 1,172 27 Balance at April 29, 2018 $ (7,372 ) $ 617 $ (6,755 ) 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.

ACQUISITION OF OUTWARD, INC.

ACQUISITION OF OUTWARD, INC.	3 Months Ended
	May 05, 2019
ACQUISITION OF OUTWARD, INC	NOTE K. ACQUISITION OF OUTWARD, INC. On December 1, 2017, we acquired Outward, Inc., a 3-D imaging and augmented reality platform for the home furnishings and décor industry. Outward’s technology enables applications in product visualization, digital room design and augmented and virtual reality. Of the $112,000,000 contractual purchase price, approximately $80,812,000 was deemed to be purchase consideration, $26,690,000 is payable to former stockholders of Outward over a period of four years from the acquisition date, contingent upon their continued service during that time, and $4,498,000 primarily represents settlement of pre-existing obligations of Outward with third parties on the acquisition date. Certain key employees of Outward may also collectively earn up to an additional $20,000,000, contingent upon achievement of certain financial performance targets, and subject to their continued service over the performance period. Both of these contingent amounts will be recognized as post-combination compensation expense as they are earned. The purchase consideration has been allocated based on estimates of the fair value of identifiable assets acquired and liabilities assumed, as set forth in the table below. In thousands Working capital and other assets $ 718,000 Property and equipment, net 2,049,000 Intangible assets 18,300,000 Liabilities (6,886,000 ) Total identifiable net assets acquired $ 14,181,000 Goodwill 66,631,000 Total purchase consideration $ 80,812,000 Intangible assets acquired primarily represent 3-D imaging data and core intellectual property which are being amortized over a useful life of four years. Goodwill is primarily attributable to expected synergies as a result of the acquisition, which include the leverage of acquired technology and talent to drive improved conversion, cost savings and operating efficiencies. None of the goodwill will be deductible for income tax purposes. Outward is a wholly-owned subsidiary of Williams-Sonoma, Inc. Results of operations for Outward have been included in our Condensed Consolidated Financial Statements from the acquisition date.

REVENUE

REVENUE	3 Months Ended
	May 05, 2019
REVENUE	NOTE L. REVENUE The majority of our revenues are generated from sales of merchandise to our customers through our e-commerce websites, our direct mail catalogs, or at our retail stores and include shipping fees received from customers for delivery of merchandise to their homes. The remainder of our revenues are primarily generated from sales to our franchisees and other wholesale transactions, breakage income related to stored-value cards, and incentives received from credit card issuers in connection with our private label and co-branded credit cards. We recognize revenue as control of promised goods or services are transferred to our customers. We record a liability at each period end where we have an obligation to transfer goods or services for which we have received consideration or have a right to consideration . We exclude from revenue any taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and are concurrent with revenue-generating activities. Our payment terms are primarily at the point of sale for merchandise sales and for most services. See Note E for a discussion of our net revenues by operating segment. Merchandise Sales Revenues from the sale of our merchandise through our e-commerce websites, at our retail stores, as well as to our franchisees and wholesale customers are, in each case, recognized at a point in time when control of merchandise is transferred to the customer. Merchandise can either be picked up in our stores or delivered to the customer. For merchandise picked up in the store, control is transferred at the time of the sale to the end customer. For merchandise delivered to the customer, control is transferred when either delivery has been completed, or we have a present right to payment which, for certain merchandise, occurs upon conveyance of the merchandise to the carrier for delivery. We have elected to account for shipping and handling as fulfillment activities, and not as a separate performance obligation. Revenue from the sale of merchandise is reported net of sales returns. We estimate future returns based on historical return trends together with current product sales performance. As of May 5, 2019, we recorded a liability for expected sales returns of approximately $30,154,000 within other current liabilities and a corresponding asset for the expected net realizable value of the merchandise inventory to be returned of approximately $11,204,000 within other current assets in our Condensed Consolidated Balance Sheet. Stored-value Cards We issue stored-value cards that may be redeemed on future merchandise purchases. Our stored-value cards have no expiration dates. Revenue from stored-value cards is recognized at a point in time upon redemption of the card and as control of the merchandise is transferred to the customer. Revenue from estimated unredeemed stored-value cards (breakage) is recognized in a manner consistent with our historical redemption patterns over the estimated period of redemption of our cards of approximately four years, the majority of which is recognized within one year of the card issuance. Breakage revenue is not material to our Condensed Consolidated Financial Statements. Credit Card Incentives We enter into agreements with credit card issuers in connection with our private label and co-branded credit cards whereby we receive cash incentives in exchange for promised services, such as licensing our brand names and marketing the credit card program to end customers. Services promised under these agreements are interrelated and are thus considered a single performance obligation. Revenue is recognized over time as we transfer promised services throughout the contract term. Customer Loyalty Programs We have customer loyalty programs which allow members to earn points for each qualifying purchase. Points earned enable members to receive certificates that may be redeemed on future merchandise purchases. This customer option is a material right and, accordingly, represents a separate performance obligation to the customer. The allocated consideration for the points earned by our loyalty program members is deferred based on the standalone selling price of the points and recorded within gift card and other deferred revenue within our Condensed Consolidated Balance Sheet. The measurement of standalone selling prices takes into consideration the discount the customer would receive in a separate transaction for the delivered item, as well as our estimate of certificates expected to be redeemed, based on historical redemption patterns. This measurement is applied to our portfolio of performance obligations for points earned, as all obligations have similar economic characteristics. We believe the impact to our Condensed Consolidated Financial Statements would not be materially different if this measurement was applied to each individual performance obligation. Revenue is recognized for these performance obligations at a point in time when certificates are redeemed by the customer. These obligations relate to contracts with terms less than one year, as our certificates generally expire within 6 months from issuance. Deferred Revenue We defer revenue when cash payments are received in advance of satisfying performance obligations, primarily associated with our stored-value cards, merchandise sales, and incentives received from credit card issuers. As of May 5, 2019, we held $298,557,000

LEASES

LEASES	3 Months Ended
	May 05, 2019
Leases [Abstract]
LEASES	NOTE M. LEASES We lease store locations, distribution and manufacturing facilities, corporate facilities, customer care centers and certain equipment for our U.S. and foreign operations with initial terms generally ranging from 2 to 22 years. We determine whether an arrangement is or contains a lease at inception by evaluating whether an identified asset exists that we control over the term of the arrangement. Lease commencement is determined to be when the lessor provides us access to, and the right to control, the identified asset. The rental payments for our store leases are typically structured as either: minimum rent; minimum rate with stated increases or increases based on a future index; rent based on a percentage of store sales; or rent based on a percentage of store sales if a specified store sales threshold or contractual obligation of the landlord has not been met. We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities. Our variable lease payments include: rent payments that are based on a percentage of sales; contingent payments until the resolution of the contingency is reasonably certain; and rent increases based on a future index. Upon lease commencement, we recognize the lease liability measured at the present value of the fixed future minimum lease payments. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement. We record a right-of-use asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and right-of-use asset when a change to our future minimum lease payments occurs. Key assumptions and judgements included in the determination of the lease liability include the discount rate applied to present value the future lease payments, and the exercise of renewal and termination options. Many of our leases contain renewal options and early termination options. The option periods are generally not included in the lease term used to measure our lease liabilities and right-of-use assets upon commencement as exercise of the options is not reasonably certain. We remeasure the lease liability and right-of-use asset when we are reasonably certain to exercise a renewal or early termination option. Discount Rate Our leases do not provide information about the rate implicit in the lease. Therefore, we utilized an incremental borrowing rate to calculate the present value of our future lease obligations. The incremental borrowing rate represents the rate of interest we would have to pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment. The components of leases costs for the thirteen weeks ended May 5, 2019 are as follows: In thousands Operating lease costs $ 64,968 Variable lease costs 4,634 Total lease costs $ 69,602 Sublease income and short-term lease costs were not material to us for the thirteen weeks ended May 5, 2019. Supplemental cash flow information related to our leases for the thirteen weeks ended May 5, 2019 are as follows: In thousands Cash paid for amounts included in the measurement of operating lease liabilities $ 69,814 Net additions to right-of-use assets $ 18,522 Weighted average remaining operating lease term and incremental borrowing rate as of May 5, 2019 are as follows: Weighted average remaining lease term (years) 7.71 Weighted average incremental borrowing rate 3.88 % As of May 5, 2019, the future minimum lease payments under our operating lease liabilities are as follows: In thousands Remaining fiscal 2019 $ 212,392 Fiscal 2020 254,252 Fiscal 2021 221,022 Fiscal 2022 188,561 Fiscal 2023 158,676 Fiscal 2024 136,186 Fiscal 2025 and thereafter 426,080 Total lease payments 1,597,169 Less interest (230,117 ) Total operating lease liability 1,367,052 Less current operating lease liability (227,427 ) Total non-current operating lease liability $ 1,139,625 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments under non-cancellable operating leases as of February 3, 2019 were as follows: In thousands Fiscal 2019 $ 292,387 Fiscal 2020 262,429 Fiscal 2021 225,755 Fiscal 2022 190,263 Fiscal 2023 160,308 Thereafter 559,802 Total $ 1,690,944 Memphis-Based Distribution Facility In fiscal 2015, we entered into an agreement with a partnership comprised of the estate of W. Howard Lester, our former Chairman of the Board and Chief Executive Officer, and the estate of James A. McMahan, a former Director Emeritus and significant stockholder and two unrelated parties to lease a distribution facility in Memphis, Tennessee through July 2017. In fiscal 2017, we exercised the first of two one-year extensions available under the lease to extend the term through July 2018. Subsequently, in fiscal 2017, we amended the lease to further extend the term through July 2020. The amended lease provides for two additional one-year renewal options. Rental payments under this agreement including applicable taxes, insurance and maintenance expenses were not material to us for the thirteen weeks ended May 5, 2019 or April 29, 2018.

FINANCIAL STATEMENTS - BASIS _2

FINANCIAL STATEMENTS - BASIS OF PRESENTATION (Policies)	3 Months Ended
	May 05, 2019
New Accounting Pronouncements	New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases, which requires lessees to recognize a right-of-use asset and an operating lease liability for virtually all leases. This ASU, as amended, was effective for us beginning in the first quarter of fiscal 2019. The adoption of the ASU resulted in an increase in total long-term assets and total liabilities of approximately $1.2 $1.4 $0.2 $1.2 3.3 In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815), In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Accordingly, the amendments require an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. We do not expect the adoption of this ASU to have a material impact on our financial condition, results of operations or cash flows.

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	May 05, 2019
Summary of Restricted Stock Units Activity	The following table summarizes our restricted stock unit activity during the thirteen weeks ended May 5, 2019: Shares Balance at February 3, 2019 3,012,923 Granted 953,459 Granted, with vesting subject to performance conditions 235,156 Released (1,020,670 ) Cancelled (73,482 ) Balance at May 5, 2019 3,107,386 Vested plus expected to vest at May 5, 2019 2,506,509

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	May 05, 2019
Reconciliation of Net Earnings and Number of Shares Used In Basic and Diluted Earnings per Share Computations	The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: In thousands, except per share amounts Net Earnings Weighted Average Shares Earnings Per Share Thirteen weeks ended May 5, 2019 Basic $ 52,656 78,683 $ 0.67 Effect of dilutive stock-based awards 1,184 Diluted $ 52,656 79,867 $ 0.66 Thirteen weeks ended April 29, 2018 Basic $ 45,168 83,392 $ 0.54 Effect of dilutive stock-based awards 782 Diluted $ 45,168 84,174 $ 0.54

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	May 05, 2019
Segment Information	The following table summarizes our net revenues by brand for the thirteen weeks ended May 5, 2019 and April 29, 2018. We have updated fiscal 2018 results to conform with the current year presentation. Thirteen Weeks Ended In thousands May 5, 2019 April 29, 2018 Pottery Barn $ 492,126 $ 490,372 West Elm 309,483 273,349 Williams Sonoma 194,894 200,977 Pottery Barn Kids and Teen 177,046 180,396 Other 1 67,583 57,906 Total 2 $ 1,241,132 $ 1,203,000 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 $86.6 million and $79.4 million for the thirteen weeks ended May 5, 2019 and April 29, 2018.
Summary of Long-lived Assets by Geographic Areas	Long-lived assets by geographic location are as follows: In thousands May 5, 2019 April 29, 2018 U.S. $ 2,136,000 $ 1,074,177 International 166,719 59,511 Total $ 2,302,719 $ 1,133,688

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	May 05, 2019
Foreign Currency Forward Contracts Outstanding with Notional Values	As of May 5, 2019 and April 29, 2018, we had foreign currency forward contracts outstanding (in U.S. dollars) with notional values as follows: In thousands May 5, 2019 April 29, 2018 Contracts designated as cash flow hedges $ 10,800 $ 28,500 Contracts not designated as cash flow hedges $ — $ 52,276
Effect of Derivative Instruments in Consolidated Financial Statements	The effect of derivative instruments in our Condensed Consolidated Financial Statements during the thirteen weeks ended May 5, 2019 and April 29, 2018, pre-tax, was as follows: In thousands May 5, 2019 April 29, 2018 Net gain (loss) recognized in OCI $ 278 $ 1,191 May 5, 2019 April 29, 2018 In thousands Cost of goods Selling, Cost of goods Selling, Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded $ 796,801 $ 370,199 $ 770,836 $ 365,614 Gain (loss) recognized in income Derivatives designated as cash flow hedges $ 108 — $ (52 ) (17 ) Derivatives not designated as hedging instruments — $ (6 ) — $ 2,760
Fair Values of Derivative Instruments	The fair values of our derivative financial instruments are presented below according to their classification in our Condensed Consolidated Balance Sheets. All fair values were measured using Level 2 inputs as defined by the fair value hierarchy described in Note I. In thousands May 5, 2019 April 29, 2018 Derivatives designated as cash flow hedges: Other current assets $ 475 $ 460 Other long-term assets $ — $ 79 Other current liabilities $ — $ (51 ) Derivatives not designated as hedging instruments: Other current assets $ — $ 36

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	3 Months Ended
	May 05, 2019
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax	Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: In thousands Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at February 3, 2019 $ (11,259 ) $ 186 $ (11,073 ) Foreign currency translation adjustments (3,009 ) — (3,009 ) Change in fair value of derivative financial instruments — 204 204 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (67 ) (67 ) Other comprehensive income (loss) (3,009 ) 137 (2,872 ) Balance at May 5, 2019 $ (14,268 ) $ 323 $ (13,945 ) 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 1 — 49 49 Other comprehensive income (loss) (1,145 ) 1,172 27 Balance at April 29, 2018 $ (7,372 ) $ 617 $ (6,755 ) 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.

ACQUISITION OF OUTWARD, INC. (T

ACQUISITION OF OUTWARD, INC. (Tables)	3 Months Ended
	May 05, 2019
Summary of Fair Value of Identifiable Assets Acquired and Liabilities Asssumed	The purchase consideration has been allocated based on estimates of the fair value of identifiable assets acquired and liabilities assumed, as set forth in the table below. In thousands Working capital and other assets $ 718,000 Property and equipment, net 2,049,000 Intangible assets 18,300,000 Liabilities (6,886,000 ) Total identifiable net assets acquired $ 14,181,000 Goodwill 66,631,000 Total purchase consideration $ 80,812,000

LEASES (Table)

LEASES (Table)	3 Months Ended
	May 05, 2019
Leases [Abstract]
Lease, Cost [Table Text Block]	The components of leases costs for the thirteen weeks ended May 5, 2019 are as follows: In thousands Operating lease costs $ 64,968 Variable lease costs 4,634 Total lease costs $ 69,602
Supplemental Cash Flow Information Related To Our Leases [Table Text Block]	Supplemental cash flow information related to our leases for the thirteen weeks ended May 5, 2019 are as follows: In thousands Cash paid for amounts included in the measurement of operating lease liabilities $ 69,814 Net additions to right-of-use assets $ 18,522
Weighted Average Remaining Operating Lease Term And Incremental Borrowing Rate ]Table Text Block]	Weighted average remaining operating lease term and incremental borrowing rate as of May 5, 2019 are as follows: Weighted average remaining lease term (years) 7.71 Weighted average incremental borrowing rate 3.88 %
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	As of May 5, 2019, the future minimum lease payments under our operating lease liabilities are as follows: In thousands Remaining fiscal 2019 $ 212,392 Fiscal 2020 254,252 Fiscal 2021 221,022 Fiscal 2022 188,561 Fiscal 2023 158,676 Fiscal 2024 136,186 Fiscal 2025 and thereafter 426,080 Total lease payments 1,597,169 Less interest (230,117 ) Total operating lease liability 1,367,052 Less current operating lease liability (227,427 ) Total non-current operating lease liability $ 1,139,625 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments under non-cancellable operating leases as of February 3, 2019 were as follows: In thousands Fiscal 2019 $ 292,387 Fiscal 2020 262,429 Fiscal 2021 225,755 Fiscal 2022 190,263 Fiscal 2023 160,308 Thereafter 559,802 Total $ 1,690,944

Financial Statements - Basis _3

Financial Statements - Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	May 05, 2019		Apr. 29, 2018		Feb. 03, 2019
Summary Of Significant Accounting Policies [Line Items]
Liabilities	$ 2,666,597		$ 1,459,671		$ 1,657,130
Operating lease	1,367,052
Deferred rent credit and lease incentives	30,536		204,599		$ 201,374
Cumulative Effect on Retained Earnings, Net of Tax	(3,303)	[1]	$ 17,688	[2]
Adjustments for New Accounting Pronouncement [Member]
Summary Of Significant Accounting Policies [Line Items]
Cumulative Effect on Retained Earnings, Net of Tax	3,300
Accounting Standards Update 2016-02 [Member]
Summary Of Significant Accounting Policies [Line Items]
Assets	1,200,000
Liabilities	1,200,000
Operating lease	1,400,000
Deferred rent credit and lease incentives	$ 200,000
[1]	Relates to our adoption of ASU 2016-02, Leases, in fiscal 2019. See Note A.
[2]	Primarily relates to our adoption of ASU 2014-09, Revenue from Contracts with Customers, in fiscal 2018.

Borrowing Arrangements - Additi

Borrowing Arrangements - Additional Information (Detail)	3 Months Ended
	May 05, 2019USD ($)
Debt Instrument [Line Items]
Maximum borrowing capacity under letter of credit facilities including additional borrowing capacity	$ 70,000,000
Letter of credit facilities, maturity date	Aug. 24, 2019
Outstanding letter of credit facilities	$ 6,168,000
Latest expiration date possible for future letters of credit	Jan. 21, 2020
Standby Letters of Credit
Debt Instrument [Line Items]
Amount issued but undrawn under credit facility	$ 11,716,000
Unsecured Revolving Line Of Credit
Debt Instrument [Line Items]
Current borrowing capacity	500,000,000
Maximum borrowing capacity including additional borrowing capacity	$ 250,000,000
Interest rate description	The interest rates under the credit facility are variable, and may be elected by us as: (i) the London Interbank Offer Rate plus an applicable margin based on our leverage ratio ranging from 0.91% to 1.775% for a revolver borrowing, and 1.0% to 2.0% for the term loan; or (ii) a base rate as defined in the credit facility plus an applicable margin ranging from 0% to 0.775% for a revolver borrowing, and 0% to 1.0% for the term loan.
Unsecured Revolving Line Of Credit | Maximum
Debt Instrument [Line Items]
Additional borrowing capacity	$ 750,000,000
Unsecured Revolving Line Of Credit | Margin Based On Leverage Ratio | Maximum
Debt Instrument [Line Items]
Leverage ratio	1.775%
Unsecured Revolving Line Of Credit | Margin Based On Leverage Ratio | Minimum
Debt Instrument [Line Items]
Leverage ratio	0.91%
Unsecured Revolving Line Of Credit | Base Rate | Maximum
Debt Instrument [Line Items]
Leverage ratio	0.775%
Unsecured Revolving Line Of Credit | Base Rate | Minimum
Debt Instrument [Line Items]
Leverage ratio	0.00%
Unsecured Term Loan Facility
Debt Instrument [Line Items]
Debt instrument face amount	$ 300,000,000
Long term debt	$ 300,000,000
Debt instrument, maturity date	Jan. 8, 2021
Weighted average interest rate	3.61%
Unsecured Term Loan Facility | Margin Based On Leverage Ratio | Maximum
Debt Instrument [Line Items]
Leverage ratio	2.00%
Unsecured Term Loan Facility | Margin Based On Leverage Ratio | Minimum
Debt Instrument [Line Items]
Leverage ratio	1.00%
Unsecured Term Loan Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Leverage ratio	1.00%
Unsecured Term Loan Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Leverage ratio	0.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	May 05, 2019	Apr. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum term of grants of option awards, years	7 years
Vesting period of awards granted to employees, years	4 years
Maximum term of grants of stock awards, years	7 years
Stock-based compensation expense	$ 18,529	$ 12,889
Minimum | Non-Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years	1 year
Equity Award Programs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares under the Plan	36,570,000
Shares available for future grant	4,927,000
Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards annual grant limit	1,000,000
Option Awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price as a percentage of closing price on the day prior to the grant date	100.00%
Service Based Option Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years	4 years
Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards annual grant limit	1,000,000
Performance Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years	3 years

Summary of Restricted Stock Uni

Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs)	3 Months Ended
	May 05, 2019shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance at February 3, 2019, shares	3,012,923
Granted, shares	953,459
Granted, with vesting subject to performance conditions, shares	235,156
Released, shares	(1,020,670)
Cancelled, shares	(73,482)
Balance at May 5, 2019, shares	3,107,386
Vested plus expected to vest at May 5, 2019 shares	2,506,509

Earnings Per Share- Additional

Earnings Per Share- Additional Information (Detail) - shares	3 Months Ended
	May 05, 2019	Apr. 29, 2018
Earnings Per Share [Line Items]
Anti-dilutive stock-based awards excluded from the computation of diluted earnings per share	11,400	29,997

Reconciliation of Net Earnings

Reconciliation of Net Earnings and Number of Shares Used in Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	May 05, 2019	Apr. 29, 2018
Earnings Per Share [Line Items]
Net Earnings, Basic	$ 52,656	$ 45,168
Net Earnings, Diluted	$ 52,656	$ 45,168
Weighted Average Shares, Basic	78,683	83,392
Weighted Average Shares, Effect of dilutive stock-based awards	1,184	782
Weighted Average Shares, Diluted	79,867	84,174
Earnings Per Share, Basic	$ 0.67	$ 0.54
Earnings Per Share, Diluted	$ 0.66	$ 0.54

Summary of Segment Reporting In

Summary of Segment Reporting Information by Segment (Detail) - USD ($) $ in Thousands		3 Months Ended
		May 05, 2019	Apr. 29, 2018
Segment Reporting Information [Line Items]
Net revenues	[1]	$ 1,241,132	$ 1,203,000
Pottery Bam [Member]
Segment Reporting Information [Line Items]
Net revenues		492,126	490,372
West Elm [Member]
Segment Reporting Information [Line Items]
Net revenues		309,483	273,349
Williams Sonoma [Member]
Segment Reporting Information [Line Items]
Net revenues		194,894	200,977
Pottery Bam Kids and Teen [Member]
Segment Reporting Information [Line Items]
Net revenues		177,046	180,396
Other [Member]
Segment Reporting Information [Line Items]
Net revenues	[2]	$ 67,583	$ 57,906
[1]	Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $86.6 million and $79.4 million for the thirteen weeks ended May 5, 2019 and April 29, 2018.
[2]	Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and Graham.

Summary of Segment Reporting _2

Summary of Segment Reporting Information by Segment (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	May 05, 2019	Apr. 29, 2018
Segment Reporting Information [Line Items]
Net revenues related to foreign operations	$ 86.6	$ 79.4

Summary of Long-lived Assets by

Summary of Long-lived Assets by Geographic Areas (Detail) - USD ($) $ in Thousands	May 05, 2019	Apr. 29, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 2,302,719	$ 1,133,688
US
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	2,136,000	1,074,177
Non-US [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 166,719	$ 59,511

Stock Repurchase Program and _2

Stock Repurchase Program and Dividends - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2018	May 05, 2019	Apr. 29, 2018	Mar. 31, 2019	Feb. 03, 2019
Stock Repurchase Program and Dividend [Line Items]
Common stock repurchased, shares		593,096	731,930
Common stock repurchased, average cost per share		$ 57.07	$ 51.53
Common stock repurchased, total cost		$ 33,848,000	$ 37,713,000
Stock repurchase program, remaining authorized repurchase amount		689,967,000	481,406,000
Stock repurchase program, authorized shares				$ 500,000,000
Treasure stock, value		$ 974,000	$ 303,000		$ 235,000
Percentage increase in authorized cash dividend	11.60%
Cash dividend, per common share		$ 0.43	$ 0.43
Authorized cash dividend, per common share	$ 0.48	$ 0.48
Dividend Declared [Member]
Stock Repurchase Program and Dividend [Line Items]
Dividend for common share				$ 0.05

Derivative Financial Instrume_3

Derivative Financial Instruments - Additional Information (Detail)	May 05, 2019USD ($)
Derivative [Line Items]
Reclassification from OCI to cost of goods sold	$ 439,000

Foreign Currency Forward Contra

Foreign Currency Forward Contracts Outstanding with Notional Values (Detail) - Foreign Exchange Contract - USD ($) $ in Thousands	May 05, 2019	Apr. 29, 2018
Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Exchange of foreign currency contracts	$ 0	$ 52,276
Derivatives designated as hedging instruments | Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Exchange of foreign currency contracts	$ 10,800	$ 28,500

Effect of Derivative Instrument

Effect of Derivative Instruments in Condensed Consolidated Financial Statements (Detail) - USD ($) $ in Thousands	3 Months Ended
	May 05, 2019	Apr. 29, 2018
Derivative [Line Items]
Net gain (loss) recognized in OCI	$ 278	$ 1,191
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded	796,801	770,836
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded	370,199	365,614
Cost of Sales [Member]
Derivative [Line Items]
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded	796,801	770,836
Derivatives designated as cash flow hedges	108	(52)
Derivatives not designated as hedging instruments	0	0
Selling, General and Administrative Expenses [Member]
Derivative [Line Items]
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded	370,199	365,614
Derivatives designated as cash flow hedges	0	(17)
Derivatives not designated as hedging instruments	$ (6)	$ 2,760

Fair Values of Derivative Instr

Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands	May 05, 2019	Apr. 29, 2018
Other Current Assets
Derivatives, Fair Value [Line Items]
Derivatives designated as cash flow hedges, Assets	$ 475	$ 460
Derivatives not designated as hedging instruments, Assets		36
Other Long-Term Assets
Derivatives, Fair Value [Line Items]
Derivatives designated as cash flow hedges, Assets		79
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivatives designated as cash flow hedges, Liabilities		$ (51)

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Detail) - USD ($) $ in Thousands		3 Months Ended
		May 05, 2019	Apr. 29, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance		$ (11,073)
Foreign currency translation adjustments		(3,009)	$ (1,145)
Change in fair value of derivative financial instruments		204	1,123
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax		(67)	49
Ending Balance		(13,945)	(6,755)
Accumulated Foreign Currency Adjustment Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance		(11,259)	(6,227)
Foreign currency translation adjustments		(3,009)	(1,145)
Change in fair value of derivative financial instruments		0	0
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax	[1]	0	0
Other comprehensive income (loss)		(3,009)	(1,145)
Ending Balance		(14,268)	(7,372)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance		186	(555)
Foreign currency translation adjustments		0	0
Change in fair value of derivative financial instruments		204	1,123
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax	[1]	(67)	49
Other comprehensive income (loss)		137	1,172
Ending Balance		323	617
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance		(11,073)	(6,782)
Foreign currency translation adjustments		(3,009)	(1,145)
Change in fair value of derivative financial instruments		204	1,123
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax	[1]	(67)	49
Other comprehensive income (loss)		(2,872)	27
Ending Balance		$ (13,945)	$ (6,755)
[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.

Acquisition of Outward, Inc. -

Acquisition of Outward, Inc. - Additional Information (Detail) - Outward Inc. - USD ($)	Dec. 01, 2017	May 05, 2019
Business Acquisition [Line Items]
Contractual purchase price	$ 112,000,000
Purchase consideration	80,812,000
Consideration owed to former owners of an acquired business, contingent upon continued future service	$ 26,690,000
Acquisition payment period	4 years
Cash paid to settle pre-existing obligations as part of a business combination, excluded from consideration transferred	$ 4,498,000
Consideration owed to certain key employees of an acquired business, contingent upon continued future service and certain financial targets	$ 20,000,000
3-D Imaging Data and Intellectual Property
Business Acquisition [Line Items]
Finite lived intangible asset useful life		4 years

Summary of Fair Value of Identi

Summary of Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	May 05, 2019	Feb. 03, 2019	Apr. 29, 2018
Business Acquisition [Line Items]
Goodwill	$ 85,357	$ 85,382	$ 18,811
Outward Inc.
Business Acquisition [Line Items]
Working capital and other assets	718,000
Property and equipment, net	2,049,000
Intangible assets	18,300,000
Liabilities	(6,886,000)
Total identifiable net assets acquired	14,181,000
Goodwill	66,631,000
Total purchase consideration	$ 80,812,000

Revenue - Additional Informatio

Revenue - Additional Information (Detail) - USD ($)	3 Months Ended
	May 05, 2019	Feb. 03, 2019	Apr. 29, 2018
Customer loyalty program, expiration period	6 months
Gift card and other deferred revenue	$ 291,839,000	$ 290,445,000	$ 256,534,000
Other Current Liabilities
Expected sales return liability	30,154,000
Other Current Assets
Reduction in cost of goods sold for expected net realizable value of merchandise inventory to be returned	$ 11,204,000
Stored-Value Cards
Stored value card redemption period	4 years
Stored-Value Cards, Merchandise Sales and Credit Card Incentives
Gift card and other deferred revenue	$ 298,557,000

Leases - Additional information

Leases - Additional information (Detail) - Machinery and Equipment [Member]	May 05, 2019
Maximum [Member]
Lessee, Operating Lease, Term of Contract	22 years
Minimum [Member]
Lessee, Operating Lease, Term of Contract	2 years

Components of Leases Costs (Det

Components of Leases Costs (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Operating lease costs	$ 64,968
Variable lease costs	4,634
Total lease costs	$ 69,602

Supplemental Cash Flow Informat

Supplemental Cash Flow Information Related To Our Leases (Detail) $ in Thousands	Mar. 31, 2019USD ($)
Cash paid for amounts included in the measurement of operating lease liabilities:	$ 69,814
Net additions to right-of-use assets	$ 18,522

Weighted Average Remaining Oper

Weighted Average Remaining Operating Lease Term And Incremental Borrowing Rate (Detail)	May 05, 2019
Weighted average remaining lease term (years)	7 years 8 months 15 days
Weighted average incremental borrowing rate	3.88%

Future Minimum Lease Payments U

Future Minimum Lease Payments Under Our Operating Lease Liabilities (Detail) - USD ($) $ in Thousands	May 05, 2019	Feb. 03, 2019
Remaining fiscal 2019	$ 212,392
Fiscal 2020	254,252	$ 262,429
Fiscal 2021	221,022	225,755
Fiscal 2022	188,561	190,263
Fiscal 2023	158,676	160,308
Fiscal 2024	136,186
Fiscal 2025 and thereafter	426,080
Total lease payments	1,597,169	$ 1,690,944
Less interest	(230,117)
Total operating lease liability	1,367,052
Less current operating lease liability	(227,427)
Total non-current operating lease liability	$ 1,139,625

Future Minimum Lease Payments_2

Future Minimum Lease Payments Under Non-cancellable Operating Leases (Detail) - USD ($) $ in Thousands	May 05, 2019	Feb. 03, 2019
Accounting For Leases [Line Items]
Fiscal 2019		$ 292,387
Fiscal 2020	$ 254,252	262,429
Fiscal 2021	221,022	225,755
Fiscal 2022	188,561	190,263
Fiscal 2023	158,676	160,308
Thereafter		559,802
Total lease payments	$ 1,597,169	$ 1,690,944