Cover Page
Cover Page - shares | 9 Months Ended | |
Nov. 03, 2019 | Dec. 01, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Nov. 3, 2019 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000719955 | |
Current Fiscal Year End Date | --01-29 | |
Entity Registrant Name | WILLIAMS SONOMA INC | |
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 | 77,467,381 | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-14077 | |
Entity Tax Identification Number | 94-2203880 | |
Entity Address, Address Line One | 3250 Van Ness Avenue | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94109 | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common Stock | |
City Area Code | 415 | |
Local Phone Number | 421-7900 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | ||
Net revenues | [1] | $ 1,442,472 | $ 1,356,983 | $ 4,054,418 | $ 3,835,157 |
Cost of goods sold | 924,300 | 861,999 | 2,608,054 | 2,444,067 | |
Gross profit | 518,172 | 494,984 | 1,446,364 | 1,391,090 | |
Selling, general and administrative expenses | 416,281 | 400,600 | 1,184,176 | 1,155,990 | |
Operating income | 101,891 | 94,384 | 262,188 | 235,100 | |
Interest (income) expense, net | 2,564 | 2,288 | 7,486 | 5,073 | |
Earnings before income taxes | 99,327 | 92,096 | 254,702 | 230,027 | |
Income taxes | 24,614 | 10,631 | 64,685 | 51,681 | |
Net earnings | $ 74,713 | $ 81,465 | $ 190,017 | $ 178,346 | |
Basic earnings per share | $ 0.96 | $ 1.01 | $ 2.43 | $ 2.17 | |
Diluted earnings per share | $ 0.94 | $ 1 | $ 2.39 | $ 2.15 | |
Shares used in calculation of earnings per share: | |||||
Basic | 77,897 | 80,475 | 78,356 | 82,070 | |
Diluted | 79,191 | 81,641 | 79,465 | 82,951 | |
[1] | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $86.2 million and $79.0 million for the thirteen weeks ended November 3, 2019 and October 28, 2018, respectively, and approximately $260.5 million and $239.1 million for the thirty-nine weeks ended November 3, 2019 and October 28, 2018, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Net earnings | $ 74,713 | $ 81,465 | $ 190,017 | $ 178,346 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 1,783 | (1,830) | (2,477) | (5,968) |
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $97, $(23), $163 and $378 | 5 | (65) | 77 | 1,064 |
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax of $187, $43, $221 and $19 | (8) | (120) | (235) | (71) |
Comprehensive income | $ 76,493 | $ 79,450 | $ 187,382 | $ 173,371 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Change in fair value of derivative financial instruments, tax | $ 97 | $ (23) | $ 163 | $ 378 |
Reclassification adjustment for realized losses on derivative financial instruments, tax | $ 187 | $ 43 | $ 221 | $ 19 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 03, 2019 | Feb. 03, 2019 | Oct. 28, 2018 |
Current assets | |||
Cash and cash equivalents | $ 155,025 | $ 338,954 | $ 164,414 |
Accounts receivable, net | 110,131 | 107,102 | 113,582 |
Merchandise inventories, net | 1,258,541 | 1,124,992 | 1,197,554 |
Prepaid expenses | 115,288 | 101,356 | 94,071 |
Other current assets | 20,260 | 21,939 | 21,805 |
Total current assets | 1,659,245 | 1,694,343 | 1,591,426 |
Property and equipment, net | 915,740 | 929,635 | 931,361 |
Operating lease right-of-use assets | 1,194,061 | ||
Deferred income taxes, net | 41,763 | 44,055 | 45,999 |
Goodwill | 85,355 | 85,382 | 85,649 |
Other long-term assets, net | 67,660 | 59,429 | 64,324 |
Total assets | 3,963,824 | 2,812,844 | 2,718,759 |
Current liabilities | |||
Accounts payable | 444,279 | 526,702 | 487,733 |
Accrued expenses | 140,789 | 163,559 | 132,398 |
Gift card and other deferred revenue | 296,157 | 290,445 | 275,567 |
Borrowings under revolving line of credit | 100,000 | 60,000 | |
Income taxes payable | 13,182 | 21,461 | 9,903 |
Operating lease liabilities | 225,530 | ||
Other current liabilities | 68,973 | 72,645 | 71,119 |
Total current liabilities | 1,288,910 | 1,074,812 | 1,036,720 |
Deferred rent and lease incentives | 29,388 | 201,374 | 205,143 |
Long-term debt | 299,769 | 299,620 | 299,571 |
Long-term operating lease liabilities | 1,127,403 | ||
Other long-term liabilities | 86,461 | 81,324 | 85,388 |
Total liabilities | 2,831,931 | 1,657,130 | 1,626,822 |
Commitments and contingencies – See Note F | |||
Stockholders' equity | |||
Preferred stock: $.01 par value; 7,500 shares authorized; none issued | |||
Common stock: $.01 par value; 253,125 shares authorized; 77,612, 78,813 and 80,282 shares issued and outstanding at November 3, 2019, February 3, 2019 and October 28, 2018, respectively | 777 | 789 | 803 |
Additional paid-in capital | 594,991 | 581,900 | 570,924 |
Retained earnings | 550,774 | 584,333 | 532,172 |
Accumulated other comprehensive loss | (13,708) | (11,073) | (11,757) |
Treasury stock, at cost: 14, 2 and 2 shares as of November 3, 2019, February 3, 2019 and October 28, 2018, respectively | (941) | (235) | (205) |
Total stockholders' equity | 1,131,893 | 1,155,714 | 1,091,937 |
Total liabilities and stockholders' equity | $ 3,963,824 | $ 2,812,844 | $ 2,718,759 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 03, 2019 | Feb. 03, 2019 | Oct. 28, 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 | 77,612,000 | 78,813,000 | 80,282,000 |
Common stock, shares outstanding | 77,612,000 | 78,813,000 | 80,282,000 |
Treasury stock, shares | 14,000 | 2,000 | 2,000 |
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 | |||||
Conversion/release of stock-based awards, shares | [1] | 228,000 | |||||
Conversion/release of stock-based awards, value | [1] | (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 | (290) | (358) | 648 | ||||
Stock-based compensation expense | 12,811 | 12,811 | |||||
Dividends declared | (36,877) | (36,877) | |||||
Adoption of accounting pronouncements | [2] | 17,688 | 17,688 | ||||
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 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 | 178,346 | ||||||
Foreign currency translation adjustments | (5,968) | ||||||
Change in fair value of derivative financial instruments, net of tax | 1,064 | ||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (71) | ||||||
Ending Balance (in shares) at Oct. 28, 2018 | 80,282,000 | ||||||
Ending Balance at Oct. 28, 2018 | 1,091,937 | $ 803 | 570,924 | 532,172 | (11,757) | (205) | |
Beginning Balance (in shares) at Apr. 29, 2018 | 83,222,000 | ||||||
Beginning Balance at Apr. 29, 2018 | 1,197,234 | $ 833 | 564,685 | 638,774 | (6,755) | (303) | |
Net earnings | 51,713 | 51,713 | |||||
Foreign currency translation adjustments | (2,993) | (2,993) | |||||
Change in fair value of derivative financial instruments, net of tax | 6 | 6 | |||||
Conversion/release of stock-based awards, shares | [1] | 175,000 | |||||
Conversion/release of stock-based awards, value | [1] | (4,899) | $ 2 | (4,869) | (32) | ||
Repurchases of common stock, shares | (2,409,000) | ||||||
Repurchases of common stock, value | (137,105) | $ (25) | (11,431) | (125,649) | |||
Reissuance of treasury stock under stock-based compensation plans | (72) | (5) | 77 | ||||
Stock-based compensation expense | 13,497 | 13,497 | |||||
Dividends declared | (36,465) | (36,465) | |||||
Ending Balance (in shares) at Jul. 29, 2018 | 80,988,000 | ||||||
Ending Balance at Jul. 29, 2018 | 1,080,988 | $ 810 | 561,810 | 528,368 | (9,742) | (258) | |
Net earnings | 81,465 | 81,465 | |||||
Foreign currency translation adjustments | (1,830) | (1,830) | |||||
Change in fair value of derivative financial instruments, net of tax | (65) | (65) | |||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (120) | (120) | |||||
Conversion/release of stock-based awards, shares | 37,000 | ||||||
Conversion/release of stock-based awards, value | (1,571) | (1,571) | |||||
Repurchases of common stock, shares | (743,000) | ||||||
Repurchases of common stock, value | (45,403) | $ (7) | (3,604) | (41,792) | |||
Reissuance of treasury stock under stock-based compensation plans | (53) | 53 | |||||
Stock-based compensation expense | 14,342 | 14,342 | |||||
Dividends declared | (35,869) | (35,869) | |||||
Ending Balance (in shares) at Oct. 28, 2018 | 80,282,000 | ||||||
Ending Balance at Oct. 28, 2018 | 1,091,937 | $ 803 | 570,924 | 532,172 | (11,757) | (205) | |
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) | |||||
Conversion/release of stock-based awards, shares | [1] | 571,000 | |||||
Conversion/release of stock-based awards, value | [1] | (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 | [1] | (332) | 332 | ||||
Stock-based compensation expense | 18,376 | 18,376 | |||||
Dividends declared | (39,549) | (39,549) | |||||
Adoption of accounting pronouncements | [3] | (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) | |
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 | 190,017 | ||||||
Foreign currency translation adjustments | (2,477) | ||||||
Change in fair value of derivative financial instruments, net of tax | 77 | ||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (235) | ||||||
Ending Balance (in shares) at Nov. 03, 2019 | 77,612,000 | ||||||
Ending Balance at Nov. 03, 2019 | 1,131,893 | $ 777 | 594,991 | 550,774 | (13,708) | (941) | |
Beginning Balance (in shares) at May. 05, 2019 | 78,808,000 | ||||||
Beginning Balance at May. 05, 2019 | 1,121,768 | $ 788 | 571,772 | 564,127 | (13,945) | (974) | |
Net earnings | 62,648 | 62,648 | |||||
Foreign currency translation adjustments | (1,251) | (1,251) | |||||
Change in fair value of derivative financial instruments, net of tax | (132) | (132) | |||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (160) | (160) | |||||
Conversion/release of stock-based awards, shares | [1] | 31,000 | |||||
Conversion/release of stock-based awards, value | [1] | (481) | $ 1 | (482) | |||
Repurchases of common stock, shares | (636,000) | ||||||
Repurchases of common stock, value | (38,283) | $ (6) | (3,170) | (35,107) | |||
Stock-based compensation expense | 16,708 | 16,708 | |||||
Dividends declared | (39,214) | (39,214) | |||||
Ending Balance (in shares) at Aug. 04, 2019 | 78,203,000 | ||||||
Ending Balance at Aug. 04, 2019 | 1,121,603 | $ 783 | 584,828 | 552,454 | (15,488) | (974) | |
Net earnings | 74,713 | 74,713 | |||||
Foreign currency translation adjustments | 1,783 | 1,783 | |||||
Change in fair value of derivative financial instruments, net of tax | 5 | 5 | |||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (8) | (8) | |||||
Conversion/release of stock-based awards, shares | [1] | 19,000 | |||||
Conversion/release of stock-based awards, value | [1] | (736) | (715) | (21) | |||
Repurchases of common stock, shares | (610,000) | ||||||
Repurchases of common stock, value | (40,583) | $ (6) | (3,068) | (37,509) | |||
Reissuance of treasury stock under stock-based compensation plans | (54) | 54 | |||||
Stock-based compensation expense | 14,000 | 14,000 | |||||
Dividends declared | (38,884) | (38,884) | |||||
Ending Balance (in shares) at Nov. 03, 2019 | 77,612,000 | ||||||
Ending Balance at Nov. 03, 2019 | $ 1,131,893 | $ 777 | $ 594,991 | $ 550,774 | $ (13,708) | $ (941) | |
[1] | Amounts are shown net of shares withheld for employee taxes. | ||||||
[2] | Primarily relates to our adoption of ASU 2014-09, Revenue from Contracts with Customers, in fiscal 2018. | ||||||
[3] | Relates to our adoption of ASU 2016-02, Leases, in fiscal 2019. See Note A. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 03, 2019 | Oct. 28, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 190,017 | $ 178,346 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 140,495 | 141,167 |
Loss on disposal/impairment of assets | 682 | 5,290 |
Amortization of deferred lease incentives | (5,985) | (19,728) |
Non-cash lease expense | 160,138 | |
Deferred income taxes | (10,937) | 12,170 |
Tax benefit related to stock-based awards | 13,648 | 10,361 |
Stock-based compensation expense | 49,516 | 40,953 |
Other | 14 | (389) |
Changes in: | ||
Accounts receivable | (2,842) | (21,851) |
Merchandise inventories | (133,637) | (143,723) |
Prepaid expenses and other assets | (24,157) | (50,171) |
Accounts payable | (92,101) | 8,689 |
Accrued expenses and other liabilities | (24,148) | 19,002 |
Gift card and other deferred revenue | 5,848 | 24,048 |
Deferred rent and lease incentives | 23,695 | |
Operating lease liabilities | (168,308) | |
Income taxes payable | (8,293) | (48,358) |
Net cash provided by operating activities | 89,950 | 179,501 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (121,154) | (128,326) |
Other | 470 | 1,804 |
Net cash used in investing activities | (120,684) | (126,522) |
Cash flows from financing activities: | ||
Payment of dividends | (113,159) | (105,654) |
Repurchases of common stock | (112,714) | (220,221) |
Borrowings under revolving line of credit | 100,000 | 60,000 |
Tax withholdings related to stock-based awards | (26,623) | (13,906) |
Net cash used in financing activities | (152,496) | (279,781) |
Effect of exchange rates on cash and cash equivalents | (699) | 1,080 |
Net decrease in cash and cash equivalents | (183,929) | (225,722) |
Cash and cash equivalents at beginning of period | 338,954 | 390,136 |
Cash and cash equivalents at end of period | $ 155,025 | $ 164,414 |
FINANCIAL STATEMENTS - BASIS OF
FINANCIAL STATEMENTS - BASIS OF PRESENTATION | 9 Months Ended |
Nov. 03, 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 November 3, 2019 and October 28, 2018, the Condensed Consolidated Statements of Earnings, the Condensed Consolidated Statements of Comprehensive Income, and the Condensed Consolidated Statements of Stockholders’ Equity for the thirteen weeks and thirty-nine weeks then ended and the Condensed Consolidated Statements of Cash Flows for the thirty-nine 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 and thirty-nine 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 The results of operations for the thirteen and thirty-nine weeks ended November 3, 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 New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases right-of-use right-of-use non-lease right-of-use In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815), non-financial 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. internal-use 350-40 |
BORROWING ARRANGEMENTS
BORROWING ARRANGEMENTS | 9 Months Ended |
Nov. 03, 2019 | |
BORROWING ARRANGEMENTS | NOTE B. BORR O Credit Facility We have a credit facility, which provides for a $500,000,000 unsecured revolving line of cr e During the third quarter of under the revolver. For year-to-date fiscal 2019, we had borrowings of $100,000,000 year-to-date third year-to-date of $60,000,000 (at a year-to-date weighted average interest rate of 3.28%) As of November 3, 2019, we had $300,000,000 outstanding under our term loan (at a year-to-date 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 November 3, 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 23, 2020 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Nov. 03, 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 November 3, 2019, there were approximately 5,367,000 shares available for future grant. Awards may be granted under the Plan to our officers, employees and non-employee 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 years. The exercise price of these option awards must not be less than 100% of the closing price of our stock on the trading , Stock Awards Annual grants of stock awards are limited to 1,000,000 shares on a per person basis. Stock awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain performance-based awards, which have variable payout conditions based on predetermined financial targets, generally vest three years from the date of grant. Certain stock awards and other agreements contain vesting acceleration clauses which are triggered upon certain events including, but not limited to, retirement, or a merger or similar corporate event. Stock awards granted to non-employee Non-employee non-employee Stock-Based Compe n During the thirteen and thirty-nine weeks ended November 3, 2019, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $14,115,000 and $49,516,000, respectively. During the thirteen and thirty-nine weeks ended October 28, 2018, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses, of $14,427,000 and $40,953,000, respectively. Restricted Stock Units The following table summarizes o Shares Balance at February 3, 2019 3,012,923 Granted 1,036,010 Granted, with vesting subject to performance conditions 238,786 Released 1 (985,540 ) Cancelled (347,205 ) Balance at November 3, 2019 2,954,974 Vested plus expected to vest at November 3, 2019 3,115,488 1 105,436 incremental shares released due to achievement of performance conditions above target. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Nov. 03, 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 November 3, 2019 Basic $ 74,713 77,897 $ 0.96 Effect of dilutive stock-based awards 1,294 Diluted $ 74,713 79,191 $ 0.94 Thirteen weeks ended October 28, 2018 Basic $ 81,465 80,475 $ 1.01 Effect of dilutive stock-based awards 1,166 Diluted $ 81,465 81,641 $ 1.00 Thirty-nine weeks ended November 3, 2019 Basic $ 190,017 78,356 $ 2.43 Effect of dilutive stock-based awards 1,109 Diluted $ 190,017 79,465 $ 2.39 Thirty-nine weeks ended October 28, 2018 Basic $ 178,346 82,070 $ 2.17 Effect of dilutive stock-based awards 881 Diluted $ 178,346 82,951 $ 2.15 Stock-based awards of 2,000 and 28,000 were excluded from the computation of diluted earnings per share for the thirteen and thirty-nine weeks ended November 3, 2019, respectively, a s . |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Nov. 03, 2019 | |
SEGMENT REPORTING | NOTE E. SEGMENT REP O We identify our operating segments according to how our business activities are managed and evaluated. Prior to fiscal 2019, we managed e-commerce e-commerce e-commerce Beginning in fiscal 2019, due to the convergence of our e-commerce e-commerce The following table summarizes our net revenues by brand for the thirteen and thirty-nine weeks ended November 3, 2019 and October 28, 2018. We have updated fiscal 2018 results to conform with the current year presentation . Thirteen Weeks Ended Thirty-nine Weeks Ended In thousands November 3, 2019 October 28, 2018 November 3, 2019 October 28, 2018 Pottery Barn $ 556,985 $ 533,469 $ 1,573,958 $ 1,530,300 West Elm 390,341 339,099 1,057,398 913,662 Williams Sonoma 205,493 203,936 591,761 600,092 Pottery Barn Kids and Teen 228,051 227,331 632,950 621,534 Other 1 61,602 53,148 198,351 169,569 Total 2 $ 1,442,472 $ 1,356,983 $ 4,054,418 $ 3,835,157 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 $86.2 million and $79.0 million for the thirteen weeks ended November 3, 2019 and October 28, 2018, respectively, and approximately $260.5 million and $239.1 million for the thirty-nine weeks ended November 3, 2019 and October 28, 2018, respectively. Long-lived assets by geographic location are as follows: In thousands November 3, 2019 October 28, 2018 U.S. $ 2,140,505 $ 1,076,367 International 164,074 50,966 Total $ 2,304,579 $ 1,127,333 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Nov. 03, 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 | 9 Months Ended |
Nov. 03, 2019 | |
STOCK REPURCHASE PROGRAM AND DIVIDENDS | NOTE G. STOCK REPURCHASE PR O Stock Repurchase Program During the thirteen weeks ended November 3, 2019, we repurchased 610,349 shares of our common stock at an average cost of $66.49 per share for a total cost of approximately $40,583,000. During the thirty-nine weeks ended November 3, 2019, we repurchased 1,838,971 shares of our common stock at an average cost of $61.29 per share for a total cost of approximately $112,714,000. As of November 3, 2019, there was $611,101,000 remaining under our current stock repurchase program. As of November 3, 2019 and 28, and $205,000, respectively, that represents the cost of shares available for issuance that are intended to satisfy future stock-based award settlements in certain foreign jurisdictions. During the thirteen weeks ended October 28, 2018, we repurchased 742,508 shares of our common stock at an average cost of $61.15 per share for a total cost of approximately $45,403,000. During the thirty-nine weeks ended October 28, 2018, we repurchased 3,883,875 shares of our common stock at an average cost of $56.70 per share for a total cost of approximately $ 220,221,000 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 November 3, 2019 and October 28, 2018, respectively. We declared cash dividends of $1.44 and $1.29 per common share during the thirty-nine weeks ended November 3, 2019 and October 28, 2018, respectively. Our quarterly cash dividend may be limited or terminated at any time. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Nov. 03, 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 November 3, 2019, we expect to reclassify a net pre-tax We also enter into non-designated As of November 3, 2019 and October 28, 2018, we had foreign currency forward contracts outstanding (in U.S. dollars) with notional values as follows: In thousands November 3, 2019 October 28, 2018 Contracts designated as cash flow hedges $ 19,700 $ 13,300 Contracts not designated as cash flow hedges $ — $ 5,200 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 and thirty-nine weeks ended November 3, 2019 and October 28, 2018. The effect of derivative instruments in our Condensed Consolidated Financial Statements during the thirteen and thirty-nine weeks ended November 3, 2019 and October 28, 2018, pre-tax, Thirteen Weeks Ended Thirty-nine Weeks Ended November 3, 2019 October 28, 2018 November 3, 2019 October 28, 2018 In thousands Cost of goods sold Selling, general and administrative expenses Cost of goods sold Selling, general and administrative expenses Cost of goods sold Selling, general and administrative expenses Cost of goods sold Selling, general and administrative expenses Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded $ 924,300 $ 416,281 $ 861,999 $ 400,600 $ 2,608,054 $ 1,184,176 $ 2,444,067 $ 1,155,990 Gain (loss) recognized in income Derivatives designated as cash flow hedges $ 204 $ — $ 163 $ 16 $ 499 $ — $ 90 $ 49 Derivatives not designated as hedging instruments $ — $ 6 $ — $ 105 $ — $ 24 $ — $ 4,048 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 November 3, 2019 October 28, 2018 Derivatives designated as cash flow hedges: Other current assets $ 132 $ 504 Derivatives not designated as hedging instruments: Other current assets $ — $ 118 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 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Nov. 03, 2019 | |
FAIR VALUE MEASUREMENTS | N O 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 Fair Value Measurement • 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 November 3, 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 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 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 There were no transfers between Level 1, 2 or 3 categories during the thirteen and thirty-nine weeks ended November 3, 2019 or October 28, 2018. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Nov. 03, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE J. ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in accum u In thousands Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at February 3, 2019 $ (11,259 ) $ 186 $ (11,073 ) Foreign currency translation adjustments (3,009 ) — (3,009 ) Change in fair value of derivative financial instruments — 204 204 Reclassification adjustment for realized (gain) loss on derivative financial instruments — (67 ) (67 ) Other comprehensive income (loss) (3,009 ) 137 (2,872 ) Balance at May 5, 2019 (14,268 ) 323 (13,945 ) Foreign currency translation adjustments (1,251 ) — (1,251 ) Change in fair value of derivative financial instruments — (132 ) (132 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments — (160 ) (160 ) Other comprehensive income (loss) (1,251 ) (292 ) (1,543 ) Balance at August 4, 2019 (15,519 ) 31 (15,488 ) Foreign currency translation adjustments 1,783 — 1,783 Change in fair value of derivative financial instruments — 5 5 Reclassification adjustment for realized (gain) loss on derivative financial instruments — (8 ) (8 ) Other comprehensive income (loss) 1,783 (3 ) 1,780 Balance at November 3, 2019 $ (13,736 ) $ 28 $ (13,708 ) Balance at January 28, 2018 $ (6,227 ) $ (555 ) $ (6,782 ) Foreign currency translation adjustments (1,145 ) — (1,145 ) Change in fair value of derivative financial instruments — 1,123 1,123 Reclassification adjustment for realized (gain) loss on derivative financial instruments — 49 49 Other comprehensive income (loss) (1,145 ) 1,172 27 Balance at April 29, 2018 (7,372 ) 617 (6,755 ) Foreign currency translation adjustments (2,993 ) — (2,993 ) Change in fair value of derivative financial instruments — 6 6 Other comprehensive income (loss) (2,993 ) 6 (2,987 ) Balance at July 29, 2018 (10,365 ) 623 (9,742 ) Foreign currency translation adjustments (1,830 ) — (1,830 ) Change in fair value of derivative financial instruments — (65 ) (65 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments — (120 ) (120 ) Other comprehensive income (loss) (1,830 ) (185 ) (2,015 ) Balance at October 28, 2018 $ (12,195 ) $ 438 $ (11,757 ) |
ACQUISITION OF OUTWARD, INC.
ACQUISITION OF OUTWARD, INC. | 9 Months Ended |
Nov. 03, 2019 | |
ACQUISITION OF OUTWARD, INC | NOTE K. ACQUISITION OF OUTWARD, INC. On December 1, 2017, we acquired Outward, Inc., a 3-D pre-existing 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. 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 Outward, Inc. 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 | 9 Months Ended |
Nov. 03, 2019 | |
REVENUE | NOTE L. REVENUE The majority of our revenues are generated from sales of merchandise to our customers through our e-commerce co-branded 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 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 November 3, 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 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 of 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 November 3, 2019, we held approximately |
LEASES
LEASES | 9 Months Ended |
Nov. 03, 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 22 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. 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 right-of-use 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 lease costs for the thirteen and thirty-nine weeks ended November 3, 2019 are as follows: In thousands Thirteen weeks ended November 3, 2019 Thirty-nine weeks ended November 3, 2019 Operating lease costs $ 68,909 $ 200,020 Variable lease costs 5,816 15,579 Total lease costs $ 74,725 $ 215,599 Sublease income and short-term lease costs were not material to us for the thirteen and thirty-nine weeks ended November 3 ,2019. Supplemental cash flow information related to our leases for the thirteen and thirty-nine weeks ended November 3, 2019 is In thousands Thirteen weeks ended November 3, 2019 Thirty-nine weeks ended November 3, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 71,136 $ 212,530 Net additions to right-of-use 38,311 120,704 As of November 3, 2019, additional information related to our leases is as follows: Weighted average remaining lease term (years) 7.43 Weighted average incremental borrowing rate 3.72 % As of November 3, 2019, the future minimum lease payments under our operating lease liabilities are as follows: In thousands Remaining fiscal 2019 $ 66,826 Fiscal 2020 273,977 Fiscal 2021 240,772 Fiscal 2022 207,974 Fiscal 2023 174,827 Fiscal 2024 151,029 Fiscal 2025 and thereafter 453,319 Total lease payments 1,568,724 Less interest (215,791 ) Total operating lease liabilities 1,352,933 Less current operating lease liabilities (225,530 ) Total non-current $ 1,127,403 As previously disclosed in our 2018 Annual Report on Form 10-K non-cancellable 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. I one-year |
FINANCIAL STATEMENTS - BASIS _2
FINANCIAL STATEMENTS - BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Nov. 03, 2019 | |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases right-of-use right-of-use non-lease right-of-use In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815), non-financial 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. internal-use 350-40 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Summary of Restricted Stock Units Activity | The following table summarizes o Shares Balance at February 3, 2019 3,012,923 Granted 1,036,010 Granted, with vesting subject to performance conditions 238,786 Released 1 (985,540 ) Cancelled (347,205 ) Balance at November 3, 2019 2,954,974 Vested plus expected to vest at November 3, 2019 3,115,488 1 105,436 incremental shares released due to achievement of performance conditions above target. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Nov. 03, 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 November 3, 2019 Basic $ 74,713 77,897 $ 0.96 Effect of dilutive stock-based awards 1,294 Diluted $ 74,713 79,191 $ 0.94 Thirteen weeks ended October 28, 2018 Basic $ 81,465 80,475 $ 1.01 Effect of dilutive stock-based awards 1,166 Diluted $ 81,465 81,641 $ 1.00 Thirty-nine weeks ended November 3, 2019 Basic $ 190,017 78,356 $ 2.43 Effect of dilutive stock-based awards 1,109 Diluted $ 190,017 79,465 $ 2.39 Thirty-nine weeks ended October 28, 2018 Basic $ 178,346 82,070 $ 2.17 Effect of dilutive stock-based awards 881 Diluted $ 178,346 82,951 $ 2.15 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Segment Information | The following table summarizes our net revenues by brand for the thirteen and thirty-nine weeks ended November 3, 2019 and October 28, 2018. We have updated fiscal 2018 results to conform with the current year presentation . Thirteen Weeks Ended Thirty-nine Weeks Ended In thousands November 3, 2019 October 28, 2018 November 3, 2019 October 28, 2018 Pottery Barn $ 556,985 $ 533,469 $ 1,573,958 $ 1,530,300 West Elm 390,341 339,099 1,057,398 913,662 Williams Sonoma 205,493 203,936 591,761 600,092 Pottery Barn Kids and Teen 228,051 227,331 632,950 621,534 Other 1 61,602 53,148 198,351 169,569 Total 2 $ 1,442,472 $ 1,356,983 $ 4,054,418 $ 3,835,157 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 $86.2 million and $79.0 million for the thirteen weeks ended November 3, 2019 and October 28, 2018, respectively, and approximately $260.5 million and $239.1 million for the thirty-nine weeks ended November 3, 2019 and October 28, 2018, respectively. |
Summary of Long-lived Assets by Geographic Areas | Long-lived assets by geographic location are as follows: In thousands November 3, 2019 October 28, 2018 U.S. $ 2,140,505 $ 1,076,367 International 164,074 50,966 Total $ 2,304,579 $ 1,127,333 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Foreign Currency Forward Contracts Outstanding with Notional Values | As of November 3, 2019 and October 28, 2018, we had foreign currency forward contracts outstanding (in U.S. dollars) with notional values as follows: In thousands November 3, 2019 October 28, 2018 Contracts designated as cash flow hedges $ 19,700 $ 13,300 Contracts not designated as cash flow hedges $ — $ 5,200 |
Effect of Derivative Instruments in Consolidated Financial Statements | The effect of derivative instruments in our Condensed Consolidated Financial Statements during the thirteen and thirty-nine weeks ended November 3, 2019 and October 28, 2018, pre-tax, Thirteen Weeks Ended Thirty-nine Weeks Ended November 3, 2019 October 28, 2018 November 3, 2019 October 28, 2018 In thousands Cost of goods sold Selling, general and administrative expenses Cost of goods sold Selling, general and administrative expenses Cost of goods sold Selling, general and administrative expenses Cost of goods sold Selling, general and administrative expenses Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded $ 924,300 $ 416,281 $ 861,999 $ 400,600 $ 2,608,054 $ 1,184,176 $ 2,444,067 $ 1,155,990 Gain (loss) recognized in income Derivatives designated as cash flow hedges $ 204 $ — $ 163 $ 16 $ 499 $ — $ 90 $ 49 Derivatives not designated as hedging instruments $ — $ 6 $ — $ 105 $ — $ 24 $ — $ 4,048 |
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 November 3, 2019 October 28, 2018 Derivatives designated as cash flow hedges: Other current assets $ 132 $ 504 Derivatives not designated as hedging instruments: Other current assets $ — $ 118 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax | Changes in accum u In thousands Foreign Currency Translation Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance at February 3, 2019 $ (11,259 ) $ 186 $ (11,073 ) Foreign currency translation adjustments (3,009 ) — (3,009 ) Change in fair value of derivative financial instruments — 204 204 Reclassification adjustment for realized (gain) loss on derivative financial instruments — (67 ) (67 ) Other comprehensive income (loss) (3,009 ) 137 (2,872 ) Balance at May 5, 2019 (14,268 ) 323 (13,945 ) Foreign currency translation adjustments (1,251 ) — (1,251 ) Change in fair value of derivative financial instruments — (132 ) (132 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments — (160 ) (160 ) Other comprehensive income (loss) (1,251 ) (292 ) (1,543 ) Balance at August 4, 2019 (15,519 ) 31 (15,488 ) Foreign currency translation adjustments 1,783 — 1,783 Change in fair value of derivative financial instruments — 5 5 Reclassification adjustment for realized (gain) loss on derivative financial instruments — (8 ) (8 ) Other comprehensive income (loss) 1,783 (3 ) 1,780 Balance at November 3, 2019 $ (13,736 ) $ 28 $ (13,708 ) Balance at January 28, 2018 $ (6,227 ) $ (555 ) $ (6,782 ) Foreign currency translation adjustments (1,145 ) — (1,145 ) Change in fair value of derivative financial instruments — 1,123 1,123 Reclassification adjustment for realized (gain) loss on derivative financial instruments — 49 49 Other comprehensive income (loss) (1,145 ) 1,172 27 Balance at April 29, 2018 (7,372 ) 617 (6,755 ) Foreign currency translation adjustments (2,993 ) — (2,993 ) Change in fair value of derivative financial instruments — 6 6 Other comprehensive income (loss) (2,993 ) 6 (2,987 ) Balance at July 29, 2018 (10,365 ) 623 (9,742 ) Foreign currency translation adjustments (1,830 ) — (1,830 ) Change in fair value of derivative financial instruments — (65 ) (65 ) Reclassification adjustment for realized (gain) loss on derivative financial instruments — (120 ) (120 ) Other comprehensive income (loss) (1,830 ) (185 ) (2,015 ) Balance at October 28, 2018 $ (12,195 ) $ 438 $ (11,757 ) |
ACQUISITION OF OUTWARD, INC. (T
ACQUISITION OF OUTWARD, INC. (Tables) | 9 Months Ended |
Nov. 03, 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. 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 (Tables)
LEASES (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Leases [Abstract] | |
Schedule of components of leases costs | The components of lease costs for the thirteen and thirty-nine weeks ended November 3, 2019 are as follows: In thousands Thirteen weeks ended November 3, 2019 Thirty-nine weeks ended November 3, 2019 Operating lease costs $ 68,909 $ 200,020 Variable lease costs 5,816 15,579 Total lease costs $ 74,725 $ 215,599 |
Schedule of supplemental cash flow information related to our leases | Supplemental cash flow information related to our leases for the thirteen and thirty-nine weeks ended November 3, 2019 is In thousands Thirteen weeks ended November 3, 2019 Thirty-nine weeks ended November 3, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 71,136 $ 212,530 Net additions to right-of-use 38,311 120,704 |
Schedule of weighted average remaining operating lease term | As of November 3, 2019, additional information related to our leases is as follows: Weighted average remaining lease term (years) 7.43 Weighted average incremental borrowing rate 3.72 % |
Schedule of future minimum lease payments | As of November 3, 2019, the future minimum lease payments under our operating lease liabilities are as follows: In thousands Remaining fiscal 2019 $ 66,826 Fiscal 2020 273,977 Fiscal 2021 240,772 Fiscal 2022 207,974 Fiscal 2023 174,827 Fiscal 2024 151,029 Fiscal 2025 and thereafter 453,319 Total lease payments 1,568,724 Less interest (215,791 ) Total operating lease liabilities 1,352,933 Less current operating lease liabilities (225,530 ) Total non-current $ 1,127,403 As previously disclosed in our 2018 Annual Report on Form 10-K non-cancellable 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 | 9 Months Ended | |||||
May 05, 2019 | [1] | Apr. 29, 2018 | [2] | Nov. 03, 2019 | Feb. 03, 2019 | Oct. 28, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Liabilities | $ 2,831,931 | $ 1,657,130 | $ 1,626,822 | ||||
Operating lease | 1,352,933 | ||||||
Deferred rent credit and lease incentives | 29,388 | $ 201,374 | $ 205,143 | ||||
Cumulative Effect on Retained Earnings, Net of Tax | $ (3,303) | $ 17,688 | |||||
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) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity under letter of credit facilities including additional borrowing capacity | $ 70,000,000 | $ 70,000,000 | ||
Letter of credit facilities, maturity date | Aug. 23, 2020 | |||
Outstanding letter of credit facilities | 8,221,000 | $ 8,221,000 | ||
Borrowings under revolving line of credit | 100,000,000 | $ 60,000,000 | ||
Line of credit | 100,000,000 | $ 60,000,000 | 100,000,000 | $ 60,000,000 |
Standby Letters of Credit | ||||
Debt Instrument [Line Items] | ||||
Amount issued but undrawn under credit facility | 12,402,000 | $ 12,402,000 | ||
Unsecured Revolving Line Of Credit | ||||
Debt Instrument [Line Items] | ||||
Letter of credit facilities, maturity date | Jan. 8, 2023 | |||
Current borrowing capacity | 500,000,000 | $ 500,000,000 | ||
Maximum borrowing capacity including additional borrowing capacity | $ 250,000,000 | $ 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. | |||
Weighted average interest rate | 3.12% | 3.28% | 3.12% | 3.28% |
Borrowings under revolving line of credit | $ 40,000,000 | $ 60,000,000 | $ 100,000,000 | $ 60,000,000 |
Line of credit | 100,000,000 | $ 60,000,000 | 100,000,000 | $ 60,000,000 |
Unsecured Revolving Line Of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Additional borrowing capacity | 750,000,000 | $ 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 | $ 300,000,000 | ||
Long term debt | $ 300,000,000 | $ 300,000,000 | ||
Debt instrument, maturity date | Jan. 8, 2021 | |||
Weighted average interest rate | 3.47% | 3.47% | ||
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 ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 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 | |||
Stock-based compensation expense | $ 49,516,000 | $ 40,953,000 | ||
Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 14,115,000 | $ 14,427,000 | $ 49,516,000 | $ 40,953,000 |
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 | 36,570,000 | ||
Shares available for future grant | 5,367,000 | 5,367,000 | ||
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) | 9 Months Ended | |
Nov. 03, 2019shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance at February 3, 2019, shares | 3,012,923 | |
Granted, shares | 1,036,010 | |
Granted, with vesting subject to performance conditions, shares | 238,786 | |
Released, shares | (985,540) | [1] |
Cancelled, shares | (347,205) | |
Balance at November 3, 2019 | 2,954,974 | |
Vested plus expected to vest at November 3, 2019 | 3,115,488 | |
[1] | Excludes 105,436 incremental shares released due to achievement of performance conditions above target. |
Summary of Restricted Stock U_2
Summary of Restricted Stock Unit Activity (Parenthetical) (Detail) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended | |
Nov. 03, 2019shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incremental shares released due to achievement of performance conditions | 985,540 | [1] |
Achievement [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incremental shares released due to achievement of performance conditions | 105,436 | |
[1] | Excludes 105,436 incremental shares released due to achievement of performance conditions above target. |
Earnings Per Share- Additional
Earnings Per Share- Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Earnings Per Share [Line Items] | ||||
Anti-dilutive stock-based awards excluded from the computation of diluted earnings per share | 2,000 | 6,000 | 28,000 | 16,000 |
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 | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Earnings Per Share [Line Items] | ||||
Net Earnings, Basic | $ 74,713 | $ 81,465 | $ 190,017 | $ 178,346 |
Net Earnings, Diluted | $ 74,713 | $ 81,465 | $ 190,017 | $ 178,346 |
Weighted Average Shares, Basic | 77,897 | 80,475 | 78,356 | 82,070 |
Weighted Average Shares, Effect of dilutive stock-based awards | 1,294 | 1,166 | 1,109 | 881 |
Weighted Average Shares, Diluted | 79,191 | 81,641 | 79,465 | 82,951 |
Earnings Per Share, Basic | $ 0.96 | $ 1.01 | $ 2.43 | $ 2.17 |
Earnings Per Share, Diluted | $ 0.94 | $ 1 | $ 2.39 | $ 2.15 |
Summary of Segment Reporting In
Summary of Segment Reporting Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Net revenues | [1] | $ 1,442,472 | $ 1,356,983 | $ 4,054,418 | $ 3,835,157 |
Pottery Bam [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 556,985 | 533,469 | 1,573,958 | 1,530,300 | |
West Elm [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 390,341 | 339,099 | 1,057,398 | 913,662 | |
Williams Sonoma [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 205,493 | 203,936 | 591,761 | 600,092 | |
Pottery Bam Kids and Teen [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 228,051 | 227,331 | 632,950 | 621,534 | |
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | [2] | $ 61,602 | $ 53,148 | $ 198,351 | $ 169,569 |
[1] | Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $86.2 million and $79.0 million for the thirteen weeks ended November 3, 2019 and October 28, 2018, respectively, and approximately $260.5 million and $239.1 million for the thirty-nine weeks ended November 3, 2019 and October 28, 2018, respectively. | ||||
[2] | Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and Graham. |
Summary of Segment Reporting _2
Summary of Segment Reporting Information by Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenues related to foreign operations | $ 86.2 | $ 79 | $ 260.5 | $ 239.1 |
Summary of Long-lived Assets by
Summary of Long-lived Assets by Geographic Areas (Detail) - USD ($) $ in Thousands | Nov. 03, 2019 | Oct. 28, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,304,579 | $ 1,127,333 |
US | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 2,140,505 | 1,076,367 |
Non-US [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 164,074 | $ 50,966 |
Stock Repurchase Program and _2
Stock Repurchase Program and Dividends - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | Feb. 03, 2019 | |
Stock Repurchase Program and Dividend [Line Items] | |||||
Common stock repurchased, shares | 610,349 | 742,508 | 1,838,971 | 3,883,875 | |
Common stock repurchased, average cost per share | $ 66.49 | $ 61.15 | $ 61.29 | $ 56.70 | |
Common stock repurchased, total cost | $ 40,583,000 | $ 45,403,000 | $ 112,714,000 | $ 220,221,000 | |
Stock repurchase program, remaining authorized repurchase amount | 611,101 | 611,101 | |||
Treasure stock, value | $ 941,000 | $ 205,000 | $ 941,000 | $ 205,000 | $ 235,000 |
Cash dividend, per common share | $ 0.48 | $ 0.43 | |||
Authorized cash dividend, per common share | $ 1.44 | $ 1.29 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) | Nov. 03, 2019USD ($) |
Derivative [Line Items] | |
Reclassification from OCI to cost of goods sold | $ 37,000 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts Outstanding with Notional Values (Detail) - Foreign Exchange Contract - Cash Flow Hedging - USD ($) $ in Thousands | Nov. 03, 2019 | Oct. 28, 2018 |
Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Exchange of foreign currency contracts | $ 19,700 | $ 13,300 |
Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Exchange of foreign currency contracts | $ 5,200 |
Effect of Derivative Instrument
Effect of Derivative Instruments in Condensed Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Derivative [Line Items] | ||||
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | $ 924,300 | $ 861,999 | $ 2,608,054 | $ 2,444,067 |
Line items presented in the Condensed Consolidated Statement of Earnings in which the effects of derivatives are recorded | 416,281 | 400,600 | 1,184,176 | 1,155,990 |
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 | 924,300 | 861,999 | 2,608,054 | 2,444,067 |
Derivatives designated as cash flow hedges | 204 | 163 | 499 | 90 |
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 | 416,281 | 400,600 | 1,184,176 | 1,155,990 |
Derivatives designated as cash flow hedges | 16 | 49 | ||
Derivatives not designated as hedging instruments | $ 6 | $ 105 | $ 24 | $ 4,048 |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments (Detail) - Other Current Assets - USD ($) $ in Thousands | Nov. 03, 2019 | Oct. 28, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as cash flow hedges, Assets | $ 132 | $ 504 |
Derivatives not designated as hedging instruments, Assets | $ 118 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Nov. 03, 2019 | Aug. 04, 2019 | May 05, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | $ (11,073) | $ (11,073) | ||||||
Foreign currency translation adjustments | $ 1,783 | $ (1,251) | (3,009) | $ (1,830) | $ (2,993) | $ (1,145) | (2,477) | $ (5,968) |
Change in fair value of derivative financial instruments | 5 | (132) | 204 | (65) | 6 | 1,123 | 77 | 1,064 |
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (8) | (160) | (67) | (120) | 49 | (235) | (71) | |
Ending Balance | (13,708) | (11,757) | (13,708) | (11,757) | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | (15,519) | (14,268) | (11,259) | (10,365) | (7,372) | (6,227) | (11,259) | (6,227) |
Foreign currency translation adjustments | 1,783 | (1,251) | (3,009) | (1,830) | (2,993) | (1,145) | ||
Other comprehensive income (loss) | 1,783 | (1,251) | (3,009) | (1,830) | (2,993) | (1,145) | ||
Ending Balance | (13,736) | (15,519) | (14,268) | (12,195) | (10,365) | (7,372) | (13,736) | (12,195) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | 31 | 323 | 186 | 623 | 617 | (555) | 186 | (555) |
Change in fair value of derivative financial instruments | 5 | (132) | 204 | (65) | 6 | 1,123 | ||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (8) | (160) | (67) | (120) | 49 | |||
Other comprehensive income (loss) | (3) | (292) | 137 | (185) | 6 | 1,172 | ||
Ending Balance | 28 | 31 | 323 | 438 | 623 | 617 | 28 | 438 |
Accumulated Other Comprehensive Income (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning Balance | (15,488) | (13,945) | (11,073) | (9,742) | (6,755) | (6,782) | (11,073) | (6,782) |
Foreign currency translation adjustments | 1,783 | (1,251) | (3,009) | (1,830) | (2,993) | (1,145) | ||
Change in fair value of derivative financial instruments | 5 | (132) | 204 | (65) | 6 | 1,123 | ||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax | (8) | (160) | (67) | (120) | 49 | |||
Other comprehensive income (loss) | 1,780 | (1,543) | (2,872) | (2,015) | (2,987) | 27 | ||
Ending Balance | $ (13,708) | $ (15,488) | $ (13,945) | $ (11,757) | $ (9,742) | $ (6,755) | $ (13,708) | $ (11,757) |
Acquisition of Outward, Inc. -
Acquisition of Outward, Inc. - Additional Information (Detail) - Outward Inc. - USD ($) | Dec. 01, 2017 | Nov. 03, 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 | Nov. 03, 2019 | Feb. 03, 2019 | Oct. 28, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 85,355 | $ 85,382 | $ 85,649 |
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 ($) | 9 Months Ended | ||
Nov. 03, 2019 | Feb. 03, 2019 | Oct. 28, 2018 | |
Customer loyalty program, expiration period | 6 months | ||
Gift card and other deferred revenue | $ 296,157,000 | $ 290,445,000 | $ 275,567,000 |
Other Current Liabilities | |||
Expected sales return liability | 23,447,000 | 25,555,000 | |
Other Current Assets | |||
Reduction in cost of goods sold for expected net realizable value of merchandise inventory to be returned | $ 9,221,000 | $ 9,567,000 | |
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 | $ 300,354,000 |
Leases - Additional information
Leases - Additional information (Detail) - Machinery and Equipment [Member] | Nov. 03, 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) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Nov. 03, 2019 | Nov. 03, 2019 | |
Operating lease costs | $ 68,909 | $ 200,020 |
Variable lease costs | 5,816 | 15,579 |
Total lease costs | $ 74,725 | $ 215,599 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related To Our Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Nov. 03, 2019 | Nov. 03, 2019 | |
Cash paid for amounts included in the measurement of operating lease liabilities: | $ 71,136 | $ 212,530 |
Net additions to right-of-use assets | $ 38,311 | $ 120,704 |
Weighted Average Remaining Oper
Weighted Average Remaining Operating Lease Term And Incremental Borrowing Rate (Detail) | Nov. 03, 2019 |
Weighted average remaining lease term (years) | 7 years 5 months 4 days |
Weighted average incremental borrowing rate | 3.72% |
Future Minimum Lease Payments U
Future Minimum Lease Payments Under Our Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Nov. 03, 2019 | Feb. 03, 2019 |
Remaining fiscal 2019 | $ 66,826 | |
Fiscal 2020 | 273,977 | $ 262,429 |
Fiscal 2021 | 240,772 | 225,755 |
Fiscal 2022 | 207,974 | 190,263 |
Fiscal 2023 | 174,827 | 160,308 |
Fiscal 2024 | 151,029 | |
Fiscal 2025 and thereafter | 453,319 | |
Total lease payments | 1,568,724 | $ 1,690,944 |
Less interest | (215,791) | |
Total operating lease liabilities | 1,352,933 | |
Less current operating lease liabilities | (225,530) | |
Total non-current operating lease liabilities | $ 1,127,403 |
Future Minimum Lease Payments_2
Future Minimum Lease Payments Under Non-cancellable Operating Leases (Detail) - USD ($) $ in Thousands | Nov. 03, 2019 | Feb. 03, 2019 |
Accounting For Leases [Line Items] | ||
Fiscal 2019 | $ 292,387 | |
Fiscal 2020 | $ 273,977 | 262,429 |
Fiscal 2021 | 240,772 | 225,755 |
Fiscal 2022 | 207,974 | 190,263 |
Fiscal 2023 | 174,827 | 160,308 |
Thereafter | 559,802 | |
Total lease payments | $ 1,568,724 | $ 1,690,944 |