EXHIBIT 99.1
[WILLIAMS SONOMA LOGO]
PRESS RELEASE CONTACT:
WILLIAMS-SONOMA, INC. Sharon L. McCollam
3250 Van Ness Avenue Executive Vice President, CFO
San Francisco, CA 94109 (415) 616-8775
Bryn F. Argov
Director, Investor Relations
(415) 616-7856
Christy M. Chanslor
Investor Relations
(415) 616-8332
FOR IMMEDIATE RELEASE
WILLIAMS-SONOMA, INC. REPORTS FIRST QUARTER FISCAL YEAR 2003 RESULTS
DILUTED EARNINGS PER SHARE OF $0.11 EXCEEDS COMPANY GUIDANCE BY $0.03
San Francisco, CA, May 22, 2003, WILLIAMS-SONOMA, INC. (NYSE: WSM)
Williams-Sonoma, Inc. today announced better than expected operating results for
the first quarter ended May 4, 2003. First quarter of fiscal year 2003 diluted
earnings per share of $0.11 exceeded the Company's March 18, 2003 guidance by
$0.03 per share. Diluted earnings per share for the first quarter of fiscal year
2002 were $0.13.
Howard Lester, Chairman, commented, "We are extremely pleased to deliver to our
shareholders another consecutive quarter of strong financial performance.
Despite a challenging economic environment and unsettled consumer confidence, we
were able to drive top-line sales growth while exceeding our earnings per share
targets. During the quarter, we successfully launched our newest catalog
concept, Pottery Barn Teen, and accelerated the growth of our emerging catalog
concept, West Elm. The consumer response to both Pottery Barn Teen and West Elm
has exceeded our expectations. Also during the quarter, we realized substantial
benefits from supply chain productivity and overhead cost reduction initiatives.
Our strong first quarter performance demonstrates the strength of our brands and
the effectiveness of our multi-channel strategy in addressing the home market.
We are particularly pleased with the consistency with which the organization is
delivering on its operational initiatives. I am very proud of this company-wide
effort."
- - FIRST QUARTER 2003 -- RESULTS FOR THE 13 WEEKS ENDED MAY 4, 2003
Net earnings for the first quarter of fiscal year 2003 were $13.4 million or
$0.11 per diluted share versus $15.4 million or $0.13 per diluted share for the
first quarter of fiscal year 2002.
Net revenues, including shipping fees, increased 12.2% to $536.8 million in the
first quarter of fiscal year 2003 versus $478.4 million in the first quarter of
fiscal year 2002.
Retail net sales increased 13.3% to $303.1 million in the first quarter of
fiscal year 2003 versus $267.6 million in the first quarter of fiscal year 2002.
The year-over-year increase in retail net sales was primarily driven by
5
incremental sales from 62 net new stores at the end of the first quarter of
fiscal year 2003 versus the end of the first quarter of fiscal year 2002. This
increase was partially offset by a decline in comparable store sales of 0.8%.
Net sales generated in the Pottery Barn Kids, Williams-Sonoma, and Pottery Barn
brands as well as the Outlet stores, partially offset by a planned reduction in
Hold Everything, were the primary contributors to the year-over-year sales
increase. At the end of the first quarter of fiscal year 2003, the Company
operated 487 stores versus 425 stores at the end of the first quarter of fiscal
year 2002. First quarter year-over-year comparable store sales by retail
concept are shown in the table below.
FIRST QUARTER COMPARABLE STORE SALES* BY RETAIL CONCEPT
13-WEEKS ENDED
------------------------
RETAIL CONCEPT 5/4/03 5/5/02
-------------- ------ ------
Williams-Sonoma 5.4% 1.7%
Pottery Barn (4.4%) 11.9%
Pottery Barn Kids (9.7%) 4.8%
Hold Everything (7.5%) (11.0%)
Outlets 10.7% (5.4%)
TOTAL COMPANY (0.8%) 6.2%
* Comparable stores are defined as those stores in which gross square
footage did not change by more than 20% in the previous 12 months
and which have been open for at least 12 consecutive months without
closure for seven or more consecutive days. Percentages represent
changes in comparable store sales versus the same quarter in the
prior year.
Ed Mueller, Chief Executive Officer, commented, "Our comparable store sales
guidance for the quarter was in the range of negative 2.0% to positive 1.0%.
This range assumed that comparable store sales would be negatively impacted by
softness in the economy, reduced consumer confidence, uncertainty due to global
conflicts, low in-stock positions in Pottery Barn and Pottery Barn Kids, and a
difficult year-over-year growth comparison in the Pottery Barn brand. Our
results were consistent with our expectations and we are pleased that we were
able to deliver comparable store sales results within the range of guidance we
provided."
Direct-to-customer net sales (including catalog and Internet) in the first
quarter of fiscal year 2003 were $198.6 million, an increase of 11.4% versus
$178.3 million in the first quarter of fiscal year 2002. This year-over-year
increase was primarily driven by net sales generated in the Pottery Barn and
Pottery Barn Kids brands in addition to incremental sales in the West Elm and
Pottery Barn Teen catalogs. Internet sales were $60.2 million in the first
quarter of fiscal year 2003, an increase of 58.0% versus $38.1 million in the
first quarter of fiscal year 2002.
Gross margin expressed as a percentage of net revenues was 38.1% in the first
quarter of fiscal year 2003, an increase of approximately 10 basis points versus
the first quarter of fiscal year 2002. This year-over-year increase was
primarily driven by a reduction in customer returns, replacements and damages,
in addition to improved shipping profitability for merchandise delivered to
customers and lower inventory shrinkage. These improvements were offset by a
reduction in full-priced merchandise sales, higher occupancy expenses, and an
increase in freight-to-stores expenses driven by inventory replenishment
initiatives.
Selling, general and administrative expenses were $182.8 million or 34.1% of net
revenues in the first quarter of fiscal year 2003 versus $156.7 million, or
32.8% of net revenues in the first quarter of fiscal year 2002. The expected
year-over-year increase in selling, general and administrative expenses as a
percentage of net revenues was driven by higher catalog advertising and
employment costs, partially offset by a reduction in other general expenses. The
year-over-year increase in catalog advertising costs as a percentage of net
revenues was primarily driven by increased catalog circulation in the Company's
emerging businesses, including West Elm, Pottery Barn
6
Teen and Hold Everything in addition to lower productivity in the Pottery Barn
Kids and Pottery Barn catalogs. The increase in employment expenses was
primarily driven by higher workers' compensation insurance and employee benefit
expenses.
Merchandise inventories at cost at the end of the first quarter of fiscal year
2003 were $372.5 million versus $252.5 million at the end of the first quarter
of fiscal year 2002. This increase was due to a strategic management decision
in late 2002 to improve the in-stock positions on core merchandise in the
Williams-Sonoma, Pottery Barn, and Pottery Barn Kids brands. This decision was
based on unfavorable trends in customer service metrics, including service
levels in our retail stores and order fulfillment rates in our
direct-to-customer business. Of the $120.0 million year-over-year merchandise
inventory increase at the end of the first quarter of fiscal year 2003,
approximately 79% was in the retail channel, 14% in the direct-to-customer
channel, and approximately 7% in transit from vendors. Within the retail
channel, Williams-Sonoma, Pottery Barn, and Pottery Barn Kids contributed
approximately 49%, 24%, and 16%, respectively, of this year-over-year retail
inventory increase.
Mr. Mueller added, "We strongly believe that last year's decision to increase
our inventory investment has been fundamental to delivering our first quarter
sales performance, especially in Williams-Sonoma where we have been able to
substantially improve our in-stock position. Due to longer lead times, the
Pottery Barn and Pottery Barn Kids inventory positions are still gradually
increasing and we expect this to continue through the end of the second quarter
of this year. We remain committed to improving inventory turns and maintaining
strong inventory management disciplines, however, these initiatives will be
balanced against the equally important strategic initiative of delivering
superior service to our customers."
Mr. Mueller continued, "As we look ahead toward the remainder of 2003, we
believe that we will continue to operate in an uncertain economic environment.
We are remaining cautious in our outlook and will continue to execute against a
conservative, but flexible, growth plan. We are encouraged by current trends in
both our retail and direct-to-customer businesses and remain confident in our
ability to deliver the 2003 guidance that we have provided to our shareholders."
- - SECOND QUARTER 2003 EARNINGS GUIDANCE
- SECOND QUARTER GUIDANCE
- The second quarter of fiscal year 2003 ends on August 3, 2003
and is a 13-week quarter. The second quarter of fiscal year
2002 ended on August 4, 2002 and was also a 13-week quarter.
- NET REVENUES
- The Company projects net revenues to be in the range of $557
million to $575 million, unchanged from previous guidance.
This represents an increase in the range of 12.4% to 16.0%
versus the second quarter of fiscal year 2002.
- Retail sales are projected to be in the range of $322 million
to $330 million, unchanged from previous guidance. This
represents an increase in the range of 12.7% to 15.5% versus
the second quarter of fiscal year 2002.
- Comparable store sales are projected to be in the range of
positive 2.0% to 4.0%, unchanged from previous guidance.
- Leased and selling square footage are projected to increase in
the range of 12% to 13% versus previous guidance in the range
of 11% to 12%.
- Direct-to-customer sales are projected to be in the range of
$199 million to $207 million, unchanged from previous
guidance. This represents an increase in the range of 12.4% to
16.9% versus the second quarter of fiscal year 2002.
- Shipping fees are projected to be in the range of $36 million
to $38 million, unchanged from
7
previous guidance. This represents an increase in the range of
10.2% to 16.3% versus the second quarter of fiscal year 2002.
- GROSS MARGIN
- Gross margin is projected to be in the range of 37.4% to 37.7%
of the second quarter of fiscal year 2003 net revenues,
unchanged from previous guidance. Gross margin includes
projected shipping fees in the range of $36 million to $38
million and projected shipping costs in the range of $32
million to $34 million.
- SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
- Selling, general and administrative expenses are projected to
be in the range of 32.8% to 33.1% of the second quarter of
fiscal year 2003 net revenues, unchanged from previous
guidance.
- INTEREST EXPENSE - NET
- Interest expense for the second quarter of fiscal year 2003 is
projected to be in the range of $0.0 million to $0.1 million,
unchanged from previous guidance.
- DILUTED EARNINGS PER SHARE
- Diluted earnings per share for the second quarter of fiscal
year 2003 is estimated to be in the range of $0.12 to $0.14
per diluted share, unchanged from previous guidance.
- MERCHANDISE INVENTORIES
- Merchandise inventories at the end of the second quarter of
fiscal year 2003 are projected to increase in the range of 45%
to 50% versus the end of the second quarter of fiscal year
2002. Previous guidance projected an increase in the range of
35% to 40%.
- DEPRECIATION AND AMORTIZATION
- Second quarter of fiscal year 2003 depreciation and
amortization expense is projected to be in the range of $24
million to $25 million, unchanged from previous guidance.
- AMORTIZATION OF DEFERRED LEASE INCENTIVES
- Second quarter of fiscal year 2003 amortization of deferred
lease incentives is projected to be in the range of $4 million
to $5 million, unchanged from previous guidance.
- - FISCAL YEAR 2003 EARNINGS GUIDANCE
- FISCAL YEAR GUIDANCE
- Fiscal year 2003 ends on February 1, 2004 and is a 52-week
year. Fiscal year 2002 ended on February 2, 2003 and was also
a 52-week year.
- NET REVENUES
8
- The Company projects net revenues to be in the range of $2.646
billion to $2.718 billion versus previous guidance of $2.638
billion to $2.728 billion. The revised guidance represents an
increase in the range of 12.1% to 15.1% versus fiscal year
2002.
- Retail sales are projected to be in the range of $1.570
billion to $1.602 billion versus previous guidance of $1.567
billion to $1.607 billion. The revised guidance represents an
increase in the range of 10.8% to 13.1% versus fiscal year
2002.
- Comparable store sales growth is projected to be in the range
of positive 1.0% to 3.0%, unchanged from previous guidance.
- Leased square footage is projected to increase in the range of
11% to 12% versus previous guidance in the range of 9% to 11%.
- Selling square footage is projected to increase in the range
of 11% to 12% versus previous guidance in the range of 10% to
12%.
- Direct-to-customer sales are projected to be in the range of
$911 million to $943 million versus previous guidance of $905
million to $945 million. The revised guidance represents an
increase in the range of 14.1% to 18.1% versus fiscal year
2002.
- Catalog circulation is projected to increase in the range of
14% to 17%, unchanged from previous guidance.
- Shipping fees are projected to be in the range of $165 million
to $173 million versus previous guidance of $166 million to
$176 million. The revised guidance represents an increase in
the range of 13.0% to 18.5% versus fiscal year 2002.
QUARTERLY NET REVENUE GUIDANCE BY SEGMENT
(ALL AMOUNTS IN MILLIONS, EXCEPT PERCENTAGES)
Q1 2003 ACTUAL Q2 2003 Q3 2003 Q4 2003 FY 2003
-------------- ------- ------- ------- -------
Net Retail Sales $303 $322 - $330 $338 - $346 $607 - $623 $1,570 - $1,602
Net Direct-to-Customer Sales $199 $199 - $207 $229 - $237 $284 - $300 $911 - $943
Shipping Fees $ 35 $36 - $38 $40 - $42 $54 - $58 $165 - $173
TOTAL NET REVENUES $537 $557 - $575 $607 - $625 $945 - $981 $2,646 - $2,718
COMPARABLE STORE SALES (0.8%) 2.0% - 4.0% 1.0% - 4.0% 1.0% - 4.0% 1.0% - 3.0%
- RETAIL STORE ACTIVITY
STORE OPENING AND CLOSING GUIDANCE BY RETAIL CONCEPT
Q4 02 Q1 2003 ACTUAL Q2 2003 Q3 AND Q4 2003 FY 2003 TOTAL
----- -------------------- -------------------- --------------------- ------------
CONCEPT TOTAL OPEN CLOSE END OPEN CLOSE END OPEN CLOSE END OPEN CLOSE
------- ----- ---- ----- --- ---- ----- --- ---- ----- --- ---- -----
Williams-Sonoma 236 4 (3) 237 4 (4) 237 16 (13) 240 24 (20)*
Pottery Barn 159 1 0 160 3 (1) 162 16 (7) 171 20 (8)*
Pottery Barn Kids 56 7 0 63 3 0 66 11 0 77 21 0
Hold Everything 13 0 0 13 0 0 13 0 (3) 10 0 (3)
Outlets 14 0 0 14 0 0 14 3 (3) 14 3 (3)*
TOTAL 478 12 (3) 487 10 (5) 492 46 (26) 512 68 (34)
* Williams-Sonoma, Pottery Barn, and Outlets fiscal year 2003
total store opening and closing numbers include 14 stores, 6
stores, and 3 stores, respectively, for temporary closures due
to remodel. Remodeled stores are defined as those stores
temporarily closed and subsequently reopened during the year
due to square footage expansion, store modification, or
relocation. Consistent with the Company's definition of
comparable stores, remodeled stores are removed from the
comparable store base upon closure if the gross square footage
changes by more than 20% or if the store is closed for seven
or more consecutive days.
9
- GROSS MARGIN
- Gross margin is projected to be in the range of 40.4% to
40.6% of fiscal year 2003 net revenues, versus previous
guidance of 40.3% to 40.5%. Gross margin now includes
projected shipping fees in the range of $165 million to
$173 million and projected shipping costs in the range of
$142 million to $146 million. Previous guidance for shipping
fees and shipping costs were in the ranges of $166 million to
$176 million and $144 million to $150 million, respectively.
- SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
- Selling, general and administrative expenses are projected
to be in the range of 31.3% to 31.5% of fiscal year 2003 net
revenues, versus previous guidance of 31.4% to 31.6%.
- INTEREST EXPENSE - NET
- Interest expense for fiscal year 2003 is projected to be in
the range of $0.0 million to $0.5 million, unchanged from
previous guidance.
- DILUTED EARNINGS PER SHARE
- Diluted earnings per share for fiscal year 2003 is projected
to be in the range of $1.23 to $1.27 per share, versus
previous guidance of $1.20 to $1.24.
- Quarterly diluted earnings per share projections are as
follows:
- Q2 2003:$ 0.12 to $ 0.14(unchanged from previous
guidance)
- Q3 2003:$ 0.16 to $ 0.19(unchanged from previous
guidance)
- Q4 2003:$ 0.80 to $ 0.85(unchanged from previous
guidance)
Due to continued uncertainties and volatility in the current
economic environment, the Company believes that the quarterly
diluted earnings per share amounts will vary within the ranges
above. Therefore, the respective high and low projections
for the quarters should not be added together to derive an
estimate for the fiscal year.
- MERCHANDISE INVENTORIES
- Merchandise inventories at the end of fiscal year 2003 are
projected to increase in the range of 15% to 20% versus the
end of fiscal year 2002, unchanged from previous guidance.
- CAPITAL SPENDING
- Fiscal year 2003 capital spending is projected to be in the
range of $215 million to $225 million versus previous
guidance in the range of $160 million to $180 million. This
increase is primarily driven by the acquisition of a
corporate aircraft in late 2003 and additional investments
in store construction costs.
- DEPRECIATION AND AMORTIZATION
- Fiscal year 2003 depreciation and amortization expense is
projected to be in the range of $98 million to $103 million,
unchanged from previous guidance.
10
- AMORTIZATION OF DEFERRED LEASE INCENTIVES
- Fiscal year 2003 lease incentives are projected to be in the
range of $18 million to $19 million, unchanged from previous
guidance.
- - STOCK REPURCHASE PROGRAM
In January 2003, the Board of Directors authorized a stock repurchase program to
acquire up to four million shares of the Company's outstanding common stock in
the open market. During the fourth quarter of fiscal year 2002, the Company
repurchased and retired two million shares of its common stock under the
program. At May 4, 2003, the remaining authorized amount of stock eligible for
repurchase was two million shares. Future purchases under this program will be
made through open market transactions at times and amounts that management deems
appropriate. The timing and actual number of shares to be purchased in the
future will depend on a variety of factors such as price, corporate and
regulatory requirements, and other market conditions. The Company may terminate
or limit the stock repurchase program at any time without prior notice.
Williams-Sonoma, Inc. will host a live conference call today, May 22, 2003 at
7:00am (PT). The call, hosted by Ed Mueller, Chief Executive Officer, and Howard
Lester, Chairman, will be open to the general public via a live webcast and can
be accessed through the Internet at www.williams-sonomainc.com/webcast. A replay
of the webcast will be available at www.williams-sonomainc.com/webcast and will
be available until 3:00pm (PT) on Thursday, July 3, 2003.
Williams-Sonoma, Inc. is a nationwide specialty retailer of high quality
products for the home. These products, representing seven distinct merchandise
strategies, Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen,
Hold Everything, West Elm and Chambers, are marketed through 487 stores, eight
mail order catalogs and four e-commerce web sites.
This press release contains forward-looking statements that involve risks and
uncertainties, as well as assumptions that, if they never materialize or prove
incorrect, could cause the Company's results to differ materially from those
expressed or implied by such forward-looking statements. Such forward-looking
statements include, without limitation, statements related to the increase in
Pottery Barn and Pottery Barn Kids inventory positions and inventory management
disciplines, trends in the Company's business, the Company's ability to drive
sales and earnings growth and generate sustained long-term value for its
shareholders, and the guidance and statements regarding the Company's revenue,
earnings per share and other financial and operating metrics.
The risks and uncertainties that could cause the Company's results to differ
materially from those expressed or implied by such forward-looking statements
include, without limitation, the Company's ability to anticipate consumer
preferences and buying trends; dependence on timely introduction and customer
acceptance of its merchandise; construction and other delays in store openings;
competition from companies with concepts or products similar to those of the
Company; timely and effective sourcing of its merchandise from its foreign and
domestic vendors and delivery of merchandise through its supply chain to its
stores and customers; effective inventory management commensurate with customer
demand; successful catalog management, including timing, sizing and
merchandising; uncertainties in Internet marketing, infrastructure and
regulation; changes in consumer spending based on weather, economic, political,
competitive and other conditions beyond the Company's control; multi-channel
and multi-brand complexities; dependence on external funding sources for
operating funds; the Company's ability to control employment, occupancy and
other operating costs; its ability to improve and control its systems and
processes; general political, economic and market conditions and events,
including war or conflict; and other risks and uncertainties contained in the
Company's public announcements, reports to shareholders and other documents
filed with and furnished to the Securities and Exchange Commission, including
the Company's Annual Report on Form 10-K for the fiscal year ended February 2,
2003. All forward-looking statements in this press release are based on
information available to the Company as of the date hereof, and the Company
assumes no obligation to update these forward-looking statements.
11
WILLIAMS-SONOMA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DOLLARS IN THOUSANDS)
MAY 4, FEBRUARY 2, MAY 5,
2003 2003 2002
---------- ---------- --------
ASSETS
Current assets
Cash and cash equivalents $ 54,984 $ 193,495 $ 56,726
Accounts receivable - net 35,623 34,288 38,380
Merchandise inventories - net 372,502 321,247 252,475
Prepaid catalog expenses 33,642 35,163 28,253
Prepaid expenses 23,811 21,346 18,872
Deferred income taxes 16,314 16,304 11,554
Other assets 8,500 3,541 3,054
---------- ---------- --------
TOTAL CURRENT ASSETS 545,376 625,384 409,314
Property and equipment - net 632,785 631,774 572,724
Other assets - net 8,528 7,297 7,571
---------- ---------- --------
TOTAL ASSETS $1,186,689 $1,264,455 $989,609
========== ========== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 123,615 $ 166,102 $ 92,159
Accrued expenses 54,895 82,027 50,881
Customer deposits 99,307 93,073 89,557
Income taxes payable 10,395 56,442 14,524
Current portion of long-term debt 7,423 7,419 7,376
Other liabilities 17,169 19,765 11,119
---------- ---------- --------
TOTAL CURRENT LIABILITIES 312,804 424,828 265,616
Deferred rent and lease incentives 162,287 161,091 131,510
Long-term debt 17,641 18,071 25,065
Deferred income tax liabilities 11,348 11,341 8,776
Other long-term obligations 6,711 5,146 5,075
---------- ---------- --------
TOTAL LIABILITIES 510,791 620,477 436,042
Shareholders' equity 675,898 643,978 553,567
---------- ---------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,186,689 $1,264,455 $989,609
========== ========== ========
12
WILLIAMS-SONOMA, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
PERIODS ENDED MAY 4, 2003 AND MAY 5, 2002
(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FIRST QUARTER
2003 2002
(13 WEEKS) (13 WEEKS)
% OF % OF
$ REVENUES $ REVENUES
-------------------------------------------------------------
Retail sales $ 303,084 56.5% $ 267,578 55.9%
Retail shipping fees 1,455 0.3 1,567 0.3
Direct-to-customer sales 198,620 37.0 178,281 37.3
Direct-to-customer shipping fees 33,681 6.2 30,953 6.5
--------- --------- --------- ---------
NET REVENUES 536,840 100.0 478,379 100.0
--------- --------- --------- ---------
Cost of goods and occupancy expenses 302,297 56.3 267,124 55.8
Shipping costs 30,235 5.6 29,357 6.1
--------- --------- --------- ---------
Total cost of goods sold 332,532 61.9 296,481 62.0
--------- --------- --------- ---------
GROSS MARGIN 204,308 38.1 181,898 38.0
Selling, general and administrative expenses 182,843 34.1 156,670 32.8
--------- --------- --------- ---------
EARNINGS FROM OPERATIONS 21,465 4.0 25,228 5.3
Interest (income) expense - net (316) (0.1) 264 0.1
--------- --------- --------- ---------
EARNINGS BEFORE INCOME TAXES 21,781 4.1 24,964 5.2
Income taxes 8,386 1.6 9,611 2.0
--------- --------- --------- ---------
NET EARNINGS $ 13,395 2.5% $ 15,353 3.2%
========= ========= ========= =========
EARNINGS PER SHARE:
Basic $ 0.12 $ 0.13
Diluted $ 0.11 $ 0.13
SHARES USED IN CALCULATION
OF EARNINGS PER SHARE:
Basic 114,689 114,600
Diluted 117,596 119,223
STORE TABLE FEBRUARY 2, MAY 4, MAY 5,
2003 OPENINGS CLOSINGS 2003 2002
---------- -------- ---------- ------- ------
Williams-Sonoma 236 4 (3) 237 218
Pottery Barn 159 1 -- 160 147
Pottery Barn Kids 56 7 -- 63 31
Hold Everything 13 -- -- 13 15
Outlets 14 -- -- 14 14
--------- --------- --------- ------ ------
Total 478 12 (3) 487 425
Store selling square footage (sq. ft.) 2,356,000 2,404,000 2,064,000
Store leased square footage (sq. ft.) 3,725,000 3,814,000 3,261,000
13