Williams-Sonoma, Inc. announces fourth quarter and fiscal year 2024 results
Williams-Sonoma (WSM) reported strong Q4 2024 results with comparable brand revenue growing 3.1% and achieving a record operating margin of 21.5%. Q4 diluted EPS reached $3.28, up 20.6% year-over-year. The company delivered these results through strong seasonal offerings, impactful collaborations, and improved retail and online furniture sales.
For fiscal year 2024, despite a -1.6% comparable brand revenue, WSM achieved an operating margin of 17.9% and diluted EPS of $8.50. The company maintained strong liquidity with $1.2B in cash and returned nearly $1.1B to stockholders through $807M in stock repurchases and $280M in dividends. The quarterly dividend was increased by 16% to $0.66 per share.
Looking ahead to fiscal 2025, WSM expects annual net revenues between -1.5% to +1.5%, with comps ranging from flat to +3.0%. The company projects an operating margin between 17.4% to 17.8%. Long-term outlook remains positive with expected mid-to-high single-digit annual net revenue growth.
Williams-Sonoma (WSM) ha riportato risultati solidi per il quarto trimestre del 2024, con un aumento del 3,1% nel fatturato delle marche comparabili e un margine operativo record del 21,5%. L'EPS diluito per il quarto trimestre ha raggiunto i $3,28, con un incremento del 20,6% rispetto all'anno precedente. L'azienda ha ottenuto questi risultati grazie a offerte stagionali forti, collaborazioni significative e un miglioramento nelle vendite di mobili al dettaglio e online.
Per l'anno fiscale 2024, nonostante un fatturato delle marche comparabili in calo dell'1,6%, WSM ha raggiunto un margine operativo del 17,9% e un EPS diluito di $8,50. L'azienda ha mantenuto una solida liquidità con $1,2 miliardi in contante e ha restituito quasi $1,1 miliardi agli azionisti attraverso $807 milioni in riacquisti di azioni e $280 milioni in dividendi. Il dividendo trimestrale è stato aumentato del 16% a $0,66 per azione.
Guardando al futuro per l'anno fiscale 2025, WSM prevede ricavi netti annuali tra -1,5% e +1,5%, con comparabili che vanno da stabili a +3,0%. L'azienda prevede un margine operativo tra il 17,4% e il 17,8%. Le prospettive a lungo termine rimangono positive con una prevista crescita annuale dei ricavi netti a medio-alto a una cifra.
Williams-Sonoma (WSM) reportó resultados sólidos para el cuarto trimestre de 2024, con un crecimiento del 3.1% en los ingresos de marcas comparables y alcanzando un margen operativo récord del 21.5%. El EPS diluido del cuarto trimestre alcanzó los $3.28, un aumento del 20.6% interanual. La compañía logró estos resultados a través de fuertes ofertas estacionales, colaboraciones impactantes y un aumento en las ventas de muebles tanto en tiendas como en línea.
Para el año fiscal 2024, a pesar de una disminución del -1.6% en los ingresos de marcas comparables, WSM logró un margen operativo del 17.9% y un EPS diluido de $8.50. La empresa mantuvo una sólida liquidez con $1.2 mil millones en efectivo y devolvió casi $1.1 mil millones a los accionistas a través de $807 millones en recompra de acciones y $280 millones en dividendos. El dividendo trimestral se incrementó en un 16% a $0.66 por acción.
Mirando hacia el año fiscal 2025, WSM espera ingresos netos anuales entre -1.5% y +1.5%, con comparables que van de estables a +3.0%. La compañía proyecta un margen operativo entre 17.4% y 17.8%. Las perspectivas a largo plazo siguen siendo positivas, con un crecimiento esperado de ingresos netos anuales de dígitos simples medio-altos.
윌리엄스-소노마 (WSM)는 2024년 4분기 실적이 강력하다고 보고했으며, 비교 가능한 브랜드 수익이 3.1% 성장하고 21.5%의 기록적인 운영 마진을 달성했습니다. 4분기 희석 주당순이익(EPS)은 $3.28로, 전년 대비 20.6% 증가했습니다. 회사는 강력한 시즌별 제공, 영향력 있는 협업, 그리고 소매 및 온라인 가구 판매 개선을 통해 이러한 결과를 달성했습니다.
2024 회계연도 동안, 비교 가능한 브랜드 수익이 -1.6% 감소했음에도 불구하고 WSM은 17.9%의 운영 마진과 $8.50의 희석 EPS를 달성했습니다. 회사는 $12억의 현금을 보유하며 강력한 유동성을 유지했고, $8억0700만의 자사주 매입과 $2억8000만의 배당금을 통해 주주에게 거의 $11억을 반환했습니다. 분기 배당금은 16% 증가하여 주당 $0.66이 되었습니다.
2025 회계연도를 바라보며, WSM은 연간 순수익이 -1.5%에서 +1.5% 사이일 것으로 예상하며, 비교 가능한 수익은 보합에서 +3.0%까지 예상하고 있습니다. 회사는 17.4%에서 17.8% 사이의 운영 마진을 예상하고 있습니다. 장기 전망은 긍정적이며, 연간 순수익의 중간에서 높은 한 자릿수 성장률이 예상됩니다.
Williams-Sonoma (WSM) a annoncé de solides résultats pour le quatrième trimestre de 2024, avec une croissance de 3,1% des revenus des marques comparables et un record de marge opérationnelle de 21,5%. Le BPA dilué pour le quatrième trimestre a atteint 3,28 $, en hausse de 20,6% par rapport à l'année précédente. L'entreprise a obtenu ces résultats grâce à des offres saisonnières solides, des collaborations marquantes et une amélioration des ventes de meubles en magasin et en ligne.
Pour l'exercice 2024, malgré une baisse de -1,6% des revenus des marques comparables, WSM a atteint une marge opérationnelle de 17,9% et un BPA dilué de 8,50 $. L'entreprise a maintenu une solide liquidité avec 1,2 milliard $ en espèces et a restitué près de 1,1 milliard $ aux actionnaires grâce à 807 millions $ en rachats d'actions et 280 millions $ en dividendes. Le dividende trimestriel a été augmenté de 16% à 0,66 $ par action.
En regardant vers l'exercice 2025, WSM s'attend à des revenus nets annuels compris entre -1,5% et +1,5%, avec des comparables allant de stables à +3,0%. L'entreprise prévoit une marge opérationnelle comprise entre 17,4% et 17,8%. Les perspectives à long terme restent positives avec une croissance annuelle des revenus nets attendue dans une fourchette de chiffres simples moyens à élevés.
Williams-Sonoma (WSM) hat im vierten Quartal 2024 starke Ergebnisse gemeldet, mit einem Anstieg des vergleichbaren Markenumsatzes um 3,1% und einem Rekordbetriebsergebnis von 21,5%. Der verwässerte EPS für das vierte Quartal erreichte 3,28 $, was einem Anstieg von 20,6% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte diese Ergebnisse durch starke saisonale Angebote, bedeutende Kooperationen und verbesserte Einzelhandels- und Online-Verkäufe von Möbeln.
Für das Geschäftsjahr 2024, trotz eines Rückgangs des vergleichbaren Markenumsatzes um 1,6%, erzielte WSM einen Betriebsmargen von 17,9% und einen verwässerten EPS von 8,50 $. Das Unternehmen hielt eine starke Liquidität mit 1,2 Milliarden $ in bar und gab fast 1,1 Milliarden $ an die Aktionäre zurück, darunter 807 Millionen $ für Aktienrückkäufe und 280 Millionen $ in Dividenden. Die vierteljährliche Dividende wurde um 16% auf 0,66 $ pro Aktie erhöht.
Für das Geschäftsjahr 2025 erwartet WSM jährliche Nettoumsätze zwischen -1,5% und +1,5%, mit vergleichbaren Umsätzen, die von stabil bis +3,0% reichen. Das Unternehmen prognostiziert eine Betriebsmarge zwischen 17,4% und 17,8%. Die langfristige Perspektive bleibt positiv mit einem erwarteten jährlichen Nettoumsatzwachstum im mittleren bis hohen einstelligen Bereich.
- Record Q4 operating margin of 21.5%, up 140bps year-over-year
- Q4 EPS increased 20.6% to $3.28
- Strong liquidity position with $1.2B cash and $1.4B operating cash flow
- 16% increase in quarterly dividend to $0.66 per share
- Q4 comparable brand revenue growth of 3.1%
- Full-year comparable brand revenue declined 1.6%
- SG&A expenses increased 7.6% year-over-year in Q4
- Conservative fiscal 2025 revenue guidance of -1.5% to +1.5%
Insights
Williams-Sonoma delivered impressive Q4 results with
While full-year comps declined
The
WSM's cautious 2025 outlook (flat to
WSM's results reveal the effectiveness of its premium positioning strategy in the home furnishings sector. The strong Q4 performance was driven by standout seasonal merchandise, strategic collaborations, and a notable recovery in furniture sales across both online and physical retail channels – signaling the company's omnichannel approach is working exceptionally well.
The company's ability to expand margins while maintaining price integrity is particularly remarkable given industry-wide pressures. WSM has successfully navigated supply chain challenges that plagued the sector, now converting those improvements into margin gains rather than price reductions – a testament to brand strength and customer loyalty.
The
Looking forward, their measured guidance suggests a pragmatic assessment of macro headwinds while maintaining their commitment to profitable growth. The focus on "world-class customer service" mentioned in Alber's statement points to continued investment in experience-based differentiation rather than price competition – a strategy that has consistently delivered results for the Williams-Sonoma portfolio of brands in varying economic conditions.
Q4 comparable brand revenue +
Record Q4 operating margin of
Quarterly dividend increase of
“We are proud of our strong finish to 2024. In Q4, our comp came in above expectations at positive
Alber concluded, “Looking to 2025, we are confident in our strategies and competitive positioning. Despite an uncertain backdrop, we have been, and will continue to be, focused on returning to growth, enhancing our world-class customer service, and driving earnings. We are innovators and operators and are well set up for a great 2025.”
FOURTH QUARTER 2024 HIGHLIGHTS
-
Comparable brand revenue +
3.1% . -
Gross margin of
47.3% +130bps to LY driven by (i) occupancy leverage of +80bps, (ii) higher merchandise margins of +40bps and (iii) supply chain efficiencies of +10bps. Occupancy costs of , -$205 million 1.6% to LY. -
SG&A rate of
25.8% -10bps to LY driven by lower general expenses, partially offset by higher performance-based incentive compensation and advertising expenses. SG&A of , +$635 million 7.6% to LY. -
Operating income of
with a record operating margin of$530 million 21.5% . +140bps to LY. -
Diluted EPS of
per share. +$3.28 20.6% to LY. - For the fourth quarter fiscal 2024, we estimate this additional week contributed +510bps to revenue growth and +60bps to operating margin.
FISCAL YEAR 2024 HIGHLIGHTS
-
Comparable brand revenue -
1.6% . -
Gross margin of
46.5% , including a benefit of +70bps from the out-of-period freight adjustment in Q1 FY24. Without this adjustment, gross margin of45.8% , which increased +320bps to LY GAAP basis, driven by (i) higher merchandise margins of +170bps, (ii) supply chain efficiencies of +130bps and (iii) occupancy leverage of +20bps. Occupancy costs of , -$793 million 2.6% to LY GAAP basis. -
Gross margin of
46.5% , including a benefit of +70bps from the out-of-period freight adjustment in Q1 FY24. Without this adjustment, gross margin of45.8% which increased +310bps to LY non- GAAP basis, driven by (i) higher merchandise margins of +160bps, (ii) supply chain efficiencies of +130bps and (iii) occupancy leverage of +20bps. Occupancy costs of , -$793 million 2.6% to LY non-GAAP basis. -
SG&A rate of
27.9% +130bps to LY GAAP basis driven by higher performance-based incentive compensation and advertising expense, partially offset by lower general expenses. SG&A of , +$2.15 billion 4.5% to LY GAAP basis. -
SG&A rate of
27.9% +160bps to LY non-GAAP basis driven by higher performance-based incentive compensation and advertising expense, partially offset by lower general expenses. SG&A of , +$2.15 billion 5.7% to LY non-GAAP basis. -
Operating income of
with an operating margin of$1.43 billion 18.6% , including a benefit of +70bps from the out-of-period freight adjustment in Q1 FY24. Without this adjustment, operating income of with an operating margin of$1.38 billion 17.9% , +180bps to LY GAAP basis and +150bps to LY non-GAAP basis. -
Diluted EPS of
, including a benefit of$8.79 per share from the out-of-period freight adjustment in Q1 FY24. Without this adjustment, diluted EPS of$0.29 per share, +$8.50 16.8% to LY GAAP basis and +14.4% to LY non-GAAP basis. -
ROIC of
54.0% driven primarily by net earnings. -
Maintained strong liquidity position of
in cash and$1.2 billion in operating cash flow enabling the company to deliver returns to stockholders of nearly$1.4 billion through$1.1 billion in stock repurchases and$807 million in dividends. Stock repurchase authorization of$280 million remaining under our stock repurchase programs.$1.2 billion - Fiscal 2024 results included a 53rd week, which we estimate contributed +150bps to revenue growth and +20bps to operating margin in fiscal 2024.
DIVIDENDS AUTHORIZATION
-
Increased our quarterly dividend
16% , or , to$0.09 per share.$0.66
OUTLOOK
- Fiscal 2025 is a 52-week year. Our financial statements will be prepared on a 52-week basis in fiscal 2025 versus 53-week basis in fiscal 2024. However, we will report comps on a 52-week versus 52-week comparable basis. All other year-over-year comparisons will be 52-weeks in fiscal 2025 versus 53-weeks in fiscal 2024.
-
In fiscal 2025, we expect annual net revenues in the range of -
1.5% to +1.5% due to the impact from the 53rd week in fiscal 2024, with comps in the range of flat to +3.0% ; and an operating margin between17.4% to17.8% , inclusive of the impact of 20bps from the 53rd week in fiscal 2024. - Over the long term, we continue to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.
FIRST QUARTER 2024 OUT-OF-PERIOD FREIGHT ADJUSTMENT
Subsequent to the filing of our fiscal 2023 Form 10-K, in April 2024, we determined that we over-recognized freight expense in fiscal 2021, 2022 and 2023 for a cumulative amount of
SECOND QUARTER 2024 COMMON STOCK SPLIT
On July 9, 2024, we effected a 2-for-1 stock split of our common stock through a stock dividend. All historical share and per share amounts in this release have been retroactively adjusted to reflect the stock split.
CONFERENCE CALL AND WEBCAST INFORMATION
Williams-Sonoma, Inc. will host a live conference call today, March 19, 2025, at 7:00 A.M. (PT). The call will be open to the general public via live webcast and can be accessed at http://ir.williams-sonomainc.com/events. A replay of the webcast will be available at http://ir.williams-sonomainc.com/ events.
SEC REGULATION G — NON-GAAP INFORMATION
This press release includes non-GAAP financial measures. Exhibit 1 provides reconciliations of these non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, statements in the quotes of our President and Chief Executive Officer, our fiscal year 2025 outlook and long-term financial targets and dividend expectations.
The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include, without limitation: our ability to provide sustainable products at competitive prices; changes in
ABOUT WILLIAMS-SONOMA, INC.
Williams-Sonoma, Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s products, representing distinct merchandise strategies — Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow — are marketed through e-commerce websites, retail stores and direct-mail catalogs. These brands are also part of The Key Rewards, our loyalty and credit card program that offers members exclusive benefits across the Williams-
WSM-IR
Condensed Consolidated Statements of Earnings (unaudited) |
||||||||||||
For the Fourteen Weeks
|
|
For the Thirteen Weeks
|
||||||||||
February 2, 2025 |
|
January 28, 2024 |
||||||||||
(In thousands, except per share amounts) |
$ |
|
% of
|
|
$ |
% of
|
||||||
Net revenues |
$ |
2,462,218 |
|
100.0 |
% |
|
$ |
2,278,937 |
100.0 |
% |
||
Cost of goods sold |
|
1,296,593 |
|
52.7 |
|
|
|
1,230,322 |
54.0 |
|
||
Gross profit |
|
1,165,625 |
|
47.3 |
|
|
|
1,048,615 |
46.0 |
|
||
Selling, general and administrative expenses |
|
635,484 |
|
25.8 |
|
|
|
590,524 |
25.9 |
|
||
Operating income |
|
530,141 |
|
21.5 |
|
|
|
458,091 |
20.1 |
|
||
Interest income, net |
|
12,485 |
|
0.5 |
|
|
|
13,147 |
0.6 |
|
||
Earnings before income taxes |
|
542,626 |
|
22.0 |
|
|
|
471,238 |
20.7 |
|
||
Income taxes |
|
131,908 |
|
5.4 |
|
|
|
116,799 |
5.1 |
|
||
Net earnings |
$ |
410,718 |
|
16.7 |
% |
|
$ |
354,439 |
15.6 |
% |
||
Earnings per share (EPS): |
|
|
|
|
|
|
||||||
Basic |
$ |
3.33 |
|
|
|
$ |
2.76 |
|
||||
Diluted |
$ |
3.28 |
|
|
|
$ |
2.72 |
|
||||
Shares used in calculation of EPS: |
|
|
|
|
|
|
||||||
Basic |
|
123,201 |
|
|
|
|
128,286 |
|
||||
Diluted |
|
125,228 |
|
|
|
|
130,295 |
|
4th Quarter Net Revenues and Comparable Brand Revenue Growth (Decline)1 |
||||||||||||||
Net Revenues |
Comparable Brand Revenue
|
|||||||||||||
(In millions, except percentages) |
Q4 24 |
Q4 23 |
Q4 24 |
Q4 23 |
||||||||||
Pottery Barn |
$ |
919 |
$ |
874 |
(0.5 |
)% |
(9.6 |
)% |
||||||
West Elm |
|
501 |
|
453 |
4.2 |
|
(15.3 |
) |
||||||
Williams |
|
573 |
|
524 |
5.7 |
|
1.6 |
|
||||||
Pottery Barn Kids and Teen |
|
339 |
|
311 |
3.5 |
|
(2.5 |
) |
||||||
Other2 |
|
130 |
|
117 |
N/A |
|
N/A |
|
||||||
Total |
$ |
2,462 |
$ |
2,279 |
3.1 |
% |
(6.8 |
)% |
||||||
1 See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 14-week to 14-week basis for Q4 2024 and a 13- week to 13-week basis for Q4 2023, and includes business-to-business revenues. |
||||||||||||||
2 Primarily consists of net revenues from Rejuvenation, Mark and Graham, our international franchise operations and GreenRow. |
Condensed Consolidated Statements of Earnings (unaudited) |
||||||||||||
For the Fiscal Year Ended |
||||||||||||
February 2, 2025 |
January 28, 2024 |
|||||||||||
(In thousands, except per share amounts) |
$ |
|
% of
|
|
$ |
% of
|
||||||
Net revenues |
$ |
7,711,541 |
|
100.0 |
% |
|
$ |
7,750,652 |
100.0 |
% |
||
Cost of goods sold |
|
4,129,242 |
|
53.5 |
|
|
|
4,447,051 |
57.4 |
|
||
Gross profit |
|
3,582,299 |
|
46.5 |
|
|
|
3,303,601 |
42.6 |
|
||
Selling, general and administrative expenses |
|
2,152,115 |
|
27.9 |
|
|
|
2,059,408 |
26.6 |
|
||
Operating income |
|
1,430,184 |
|
18.6 |
|
|
|
1,244,193 |
16.1 |
|
||
Interest income, net |
|
55,548 |
|
0.7 |
|
|
|
29,162 |
0.4 |
|
||
Earnings before income taxes |
|
1,485,732 |
|
19.3 |
|
|
|
1,273,355 |
16.4 |
|
||
Income taxes |
|
360,481 |
|
4.7 |
|
|
|
323,593 |
4.2 |
|
||
Net earnings |
$ |
1,125,251 |
|
14.6 |
% |
|
$ |
949,762 |
12.3 |
% |
||
Earnings per share (EPS): |
|
|
|
|
|
|
||||||
Basic |
$ |
8.91 |
|
|
|
$ |
7.35 |
|
||||
Diluted |
$ |
8.79 |
|
|
|
$ |
7.28 |
|
||||
Shares used in calculation of EPS: |
||||||||||||
Basic |
|
126,242 |
|
|
129,148 |
|
||||||
Diluted |
|
128,041 |
|
|
130,543 |
|
Fiscal Year Net Revenues and Comparable Brand Revenue Growth (Decline)1 |
||||||||||||||
Net Revenues |
Comparable Brand Revenue
|
|||||||||||||
(In millions, except percentages) |
FY 24 |
FY 23 |
FY 24 |
FY 23 |
||||||||||
Pottery Barn |
$ |
3,040 |
$ |
3,206 |
(6.2 |
)% |
(9.7 |
)% |
||||||
West Elm |
|
1,841 |
|
1,855 |
(2.0 |
) |
(18.8 |
) |
||||||
Williams |
|
1,303 |
|
1,260 |
2.4 |
|
(0.7 |
) |
||||||
Pottery Barn Kids and Teen |
|
1,107 |
|
1,060 |
3.0 |
|
(5.5 |
) |
||||||
Other2 |
|
421 |
|
370 |
N/A |
|
N/A |
|
||||||
Total |
$ |
7,712 |
$ |
7,751 |
(1.6 |
)% |
(9.9 |
)% |
||||||
1 See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 53-week to 53-week basis for fiscal 2024 and a 52- week to 52-week basis for fiscal 2023, and includes business-to-business revenues. |
||||||||||||||
2 Primarily consists of net revenues from Rejuvenation, our international franchise operations, Mark and Graham and GreenRow. |
Condensed Consolidated Balance Sheets (unaudited) |
||||||||
As of |
||||||||
(In thousands, except per share amounts) |
February 2,
|
January 28,
|
||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
1,212,977 |
|
$ |
1,262,007 |
|
||
Accounts receivable, net |
|
117,678 |
|
|
122,914 |
|
||
Merchandise inventories, net |
|
1,332,429 |
|
|
1,246,369 |
|
||
Prepaid expenses |
|
66,914 |
|
|
59,466 |
|
||
Other current assets |
|
24,611 |
|
|
29,041 |
|
||
Total current assets |
|
2,754,609 |
|
|
2,719,797 |
|
||
Property and equipment, net |
|
1,033,934 |
|
|
1,013,189 |
|
||
Operating lease right-of-use assets |
|
1,177,805 |
|
|
1,229,650 |
|
||
Deferred income taxes, net |
|
120,657 |
|
|
110,656 |
|
||
Goodwill |
|
77,260 |
|
|
77,306 |
|
||
Other long-term assets, net |
|
137,342 |
|
|
122,950 |
|
||
Total assets |
$ |
5,301,607 |
|
$ |
5,273,548 |
|
||
Liabilities and stockholders' equity |
|
|
||||||
Current liabilities |
|
|
||||||
Accounts payable |
$ |
645,667 |
|
$ |
607,877 |
|
||
Accrued expenses |
|
286,033 |
|
|
264,306 |
|
||
Gift card and other deferred revenue |
|
584,791 |
|
|
573,904 |
|
||
Income taxes payable |
|
67,696 |
|
|
96,554 |
|
||
Operating lease liabilities |
|
234,180 |
|
|
234,517 |
|
||
Other current liabilities |
|
93,607 |
|
|
103,157 |
|
||
Total current liabilities |
|
1,911,974 |
|
|
1,880,315 |
|
||
Long-term operating lease liabilities |
|
1,113,135 |
|
|
1,156,104 |
|
||
Other long-term liabilities |
|
134,079 |
|
|
109,268 |
|
||
Total liabilities |
|
3,159,188 |
|
|
3,145,687 |
|
||
Stockholders' equity |
|
|
||||||
Preferred stock: |
|
— |
|
|
— |
|
||
Common stock: |
|
1,232 |
|
|
1,284 |
|
||
Additional paid-in capital |
|
571,585 |
|
|
587,960 |
|
||
Retained earnings |
|
1,591,630 |
|
|
1,555,595 |
|
||
Accumulated other comprehensive loss |
|
(21,593 |
) |
|
(15,552 |
) |
||
Treasury stock, at cost |
|
(435 |
) |
|
(1,426 |
) |
||
Total stockholders' equity |
|
2,142,419 |
|
|
2,127,861 |
|
||
Total liabilities and stockholders' equity |
$ |
5,301,607 |
|
$ |
5,273,548 |
|
||
Retail Store Data
|
||||||||||||
|
Beginning of quarter |
|
|
|
|
|
End of quarter |
|
As of |
|||
October 27, 2024 |
|
Openings |
|
Closings |
|
February 2, 2025 |
|
January 28, 2024 |
||||
Pottery Barn |
186 |
— |
(5) |
181 |
184 |
|||||||
Williams |
160 |
3 |
(9) |
154 |
156 |
|||||||
West Elm |
122 |
— |
(1) |
121 |
121 |
|||||||
Pottery Barn Kids |
46 |
— |
(1) |
45 |
46 |
|||||||
Rejuvenation |
11 |
— |
— |
11 |
11 |
|||||||
Total |
525 |
3 |
(16) |
512 |
518 |
|||||||
Condensed Consolidated Statements of Cash Flows (unaudited) |
||||||||
For the Fiscal Year Ended |
||||||||
(In thousands) |
February 2,
|
January 28,
|
||||||
Cash flows from operating activities: |
||||||||
Net earnings |
||||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
$ |
1,125,251 |
|
$ |
949,762 |
|
||
Depreciation and amortization |
|
229,802 |
|
|
232,590 |
|
||
Loss on disposal/impairment of assets |
|
5,539 |
|
|
21,869 |
|
||
Non-cash lease expense |
|
255,923 |
|
|
255,286 |
|
||
Deferred income taxes |
|
(9,741 |
) |
|
(29,085 |
) |
||
Stock-based compensation expense |
|
98,983 |
|
|
84,754 |
|
||
Other |
|
(2,603 |
) |
|
(2,796 |
) |
||
Changes in: |
|
|
||||||
Accounts receivable |
|
5,004 |
|
|
(7,461 |
) |
||
Merchandise inventories |
|
(88,085 |
) |
|
209,168 |
|
||
Prepaid expenses and other assets |
|
(19,832 |
) |
|
1,016 |
|
||
Accounts payable |
|
15,360 |
|
|
99,043 |
|
||
Accrued expenses and other liabilities |
|
27,023 |
|
|
4,935 |
|
||
Gift card and other deferred revenue |
|
11,587 |
|
|
95,005 |
|
||
Operating lease liabilities |
|
(265,131 |
) |
|
(269,162 |
) |
||
Income taxes payable |
|
(28,858 |
) |
|
35,349 |
|
||
Net cash provided by operating activities |
|
1,360,222 |
|
|
1,680,273 |
|
||
Cash flows from investing activities: |
|
|
||||||
Purchases of property and equipment |
|
(221,567 |
) |
|
(188,458 |
) |
||
Other |
|
360 |
|
|
201 |
|
||
Net cash used in investing activities |
|
(221,207 |
) |
|
(188,257 |
) |
||
Cash flows from financing activities: |
|
|
||||||
Repurchases of common stock |
|
(807,477 |
) |
|
(313,001 |
) |
||
Payment of dividends |
|
(280,058 |
) |
|
(232,475 |
) |
||
Tax withholdings related to stock-based awards |
|
(94,214 |
) |
|
(52,831 |
) |
||
Other |
|
(2,474 |
) |
|
— |
|
||
Net cash used in financing activities |
|
(1,184,223 |
) |
|
(598,307 |
) |
||
Effect of exchange rates on cash and cash equivalents |
|
(3,822 |
) |
|
954 |
|
||
Net (decrease) increase in cash and cash equivalents |
|
(49,030 |
) |
|
894,663 |
|
||
Cash and cash equivalents at beginning of period |
|
1,262,007 |
|
|
367,344 |
|
||
Cash and cash equivalents at end of period |
$ |
1,212,977 |
|
$ |
1,262,007 |
|
||
Exhibit 1 |
|||||||||||||||||||||||||||
|
GAAP to Non-GAAP Reconciliation
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
For the Fourteen
|
For the Thirteen
|
For the Fiscal Year Ended |
|||||||||||||||||||||||||
|
|
February 2, 2025 |
|
January 28, 2024 |
|
February 2, 2025 |
|
January 28, 2024 |
|
||||||||||||||||||
|
(In thousands, except per share data) |
$ |
% of
|
|
$ |
% of
|
|
$ |
% of
|
|
$ |
% of
|
|
||||||||||||||
|
Occupancy costs |
$ |
204,792 |
8.3 |
% |
|
$ |
208,020 |
|
9.1 |
% |
|
$ |
793,141 |
|
10.3 |
% |
|
$ |
814,290 |
|
10.5 |
% |
|
|||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(239 |
) |
|
|
||||||||
|
Non-GAAP occupancy costs |
$ |
204,792 |
8.3 |
% |
|
$ |
208,020 |
|
9.1 |
% |
|
$ |
793,141 |
|
10.3 |
% |
|
$ |
814,051 |
|
10.5 |
% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Gross profit |
$ |
1,165,625 |
47.3 |
% |
|
$ |
1,048,615 |
|
46.0 |
% |
|
$ |
3,582,299 |
|
46.5 |
% |
|
$ |
3,303,601 |
|
42.6 |
% |
|
|||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
2,141 |
|
|
|
|||||||
|
Non-GAAP gross profit |
$ |
1,165,625 |
47.3 |
% |
|
$ |
1,048,615 |
|
46.0 |
% |
|
$ |
3,582,299 |
|
46.5 |
% |
|
$ |
3,305,742 |
|
42.7 |
% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Selling, general and administrative expenses |
$ |
635,484 |
25.8 |
% |
|
$ |
590,524 |
|
25.9 |
% |
|
$ |
2,152,115 |
|
27.9 |
% |
|
$ |
2,059,408 |
|
26.6 |
% |
|
|||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
(15,790 |
) |
|
|
||||||||
|
Reduction-in-force Initiatives2 |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(8,316 | ) |
|
|
||||||||
|
Non-GAAP selling, general and administrative expenses |
$ |
635,484 |
25.8 |
% |
|
$ |
590,524 |
|
25.9 |
% |
|
$ |
2,152,115 |
|
27.9 |
% |
|
$ |
2,035,302 |
|
26.3 |
% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Operating income |
$ |
530,141 |
21.5 |
% |
|
$ |
458,091 |
|
20.1 |
% |
|
$ |
1,430,184 |
|
18.6 |
% |
|
$ |
1,244,193 |
|
16.1 |
% |
|
|||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
17,931 |
|
|
|
|||||||
|
Reduction-in-force Initiatives2 |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
8,316 |
|
|
|
|||||||
|
Non-GAAP operating income |
$ |
530,141 |
21.5 |
% |
|
$ |
458,091 |
|
20.1 |
% |
|
$ |
1,430,184 |
|
18.6 |
% |
|
$ |
1,270,440 |
|
16.4 |
% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
$ |
Tax rate |
|
$ |
Tax rate |
|
$ |
Tax rate |
|
$ |
Tax rate |
|
||||||||||||||
|
Income taxes |
$ |
131,908 |
24.3 |
% |
|
$ |
116,799 |
|
24.8 |
% |
|
$ |
360,481 |
|
24.3 |
% |
|
$ |
323,593 |
|
25.4 |
% |
|
|||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
4,690 |
|
|
|
|||||||
|
Reduction-in-force Initiatives2 |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
2,174 |
|
|
|
|||||||
|
Non-GAAP income taxes |
$ |
131,908 |
24.3 |
% |
|
$ |
116,799 |
|
24.8 |
% |
|
$ |
360,481 |
|
24.3 |
% |
|
$ |
330,457 |
|
25.4 |
% |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Diluted EPS |
$ |
3.28 |
|
|
$ |
2.72 |
|
|
|
$ |
8.79 |
|
|
|
$ |
7.28 |
|
|
|
|||||||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
0.10 |
|
|
|
|||||||
|
Reduction-in-force Initiatives2 |
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
0.05 |
|
|
|
|||||||
|
Non-GAAP diluted EPS3 |
$ |
3.28 |
|
|
$ |
2.72 |
|
|
|
$ |
8.79 |
|
|
|
$ |
7.43 |
|
|
|
|||||||
1 During Q1 2023, we incurred exit costs of |
|||||||||||||||||||||||||||
Return on Invested Capital (“ROIC”)
We believe ROIC is a useful financial measure for investors in evaluating the efficient and effective use of capital, and is an important component of long-term stockholder return.
The following table presents the calculation of ROIC, together with a reconciliation of net earnings to non-GAAP net operating profit after tax (“NOPAT”):
For the Fiscal Year Ended |
||||||||
February 2, |
January 28, |
|||||||
(In thousands) |
2025 |
2024 |
||||||
Net earnings |
$ |
1,125,251 |
|
$ |
949,762 |
|
||
Interest income, net |
|
(55,548 |
) |
|
(29,162 |
) |
||
Income taxes |
|
360,481 |
|
|
323,593 |
|
||
Operating income |
|
1,430,184 |
|
|
1,244,193 |
|
||
Out-of-period Freight Adjustment 1 |
|
(48,972 |
) |
|
— |
|
||
Exit Costs 2 |
|
— |
|
|
17,931 |
|
||
Reduction-in-force Initiatives 2 |
|
— |
|
|
8,316 |
|
||
Operating lease costs |
|
299,105 |
|
|
296,779 |
|
||
Adjusted Operating Income |
|
1,680,317 |
|
|
1,567,219 |
|
||
Income tax adjustment 3 |
|
(408,317 |
) |
|
(398,074 |
) |
||
NOPAT (numerator) |
$ |
1,272,000 |
|
$ |
1,169,145 |
|
||
1 During Q1 2024, we determined that we over-recognized freight expense in fiscal 2021, 2022 and 2023. Therefore, we recorded an out-of-period adjustment to reduce cost of goods sold. |
||||||||
2 For more information on the nature of these adjustments, see the footnotes to the GAAP to Non-GAAP Reconciliation. |
||||||||
3 Adjustment reflects a hypothetical provision for income taxes on adjusted operating income, using the Company's effective tax rate of |
||||||||
|
As of |
|||||||||||
(In thousands) |
February 2,
|
|
January 28,
|
January 29,
|
||||||||
Total assets |
$ |
5,301,607 |
|
|
$ |
5,273,548 |
|
$ |
4,663,016 |
|
||
Total current liabilities |
|
(1,911,974 |
) |
|
|
(1,880,315 |
) |
|
(1,636,451 |
) |
||
Cash in excess of |
|
(1,012,977 |
) |
|
|
(1,062,007 |
) |
|
(167,344 |
) |
||
Invested capital |
$ |
2,376,656 |
|
|
$ |
2,331,226 |
|
$ |
2,859,221 |
|
||
|
|
|
|
|
||||||||
Average invested capital (denominator) |
$ |
2,353,941 |
|
|
$ |
2,595,224 |
|
|
||||
|
|
|
|
|
||||||||
Return on invested capital |
|
54.0 |
% |
|
|
45.0 |
% |
|
||||
|
|
|
|
SEC Regulation G – Non-GAAP Information
These tables include non-GAAP occupancy costs, gross profit, gross margin, selling, general and administrative expense, operating income, Adjusted Operating Income, operating margin, income taxes, effective tax rate and diluted EPS. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250319426848/en/
Jeff Howie EVP, Chief Financial Officer – (415) 402 4324
-or-
Jeremy Brooks SVP, Chief Accounting Officer & Head of Investor Relations – (415) 733 2371
Source: Williams-Sonoma, Inc.