Williams-Sonoma, Inc. announces strong fourth quarter and fiscal year 2020 results

Rhea-AI Summary

Williams-Sonoma, Inc. (NYSE: WSM) reported strong Q4 and FY 2020 results, highlighting a 26% increase in comparable brand revenue in Q4 and nearly 30% demand growth. Gross margin rose to 42.1%, with GAAP diluted EPS at $3.92, an 85% year-over-year increase. For FY 2020, total revenue increased significantly, with a GAAP operating margin of 13.4% and diluted EPS at $8.61. The company anticipates mid-to-high single-digit revenue growth for FY 2021, driven by robust e-commerce performance and positive macro trends.

Positive

• 26% comparable brand revenue growth in Q4 2020.
• GAAP diluted EPS rose to $3.92, up 85% year-over-year.
• Gross margin expanded to 42.1%, an increase of 450bps.
• Strong liquidity position with over $1.2 billion in cash.
• Plans for $10 billion in net revenues within five years.

Negative

• None.

Williams-Sonoma, Inc. (NYSE: WSM), the world’s largest digital-first, design-led and sustainable home retailer, today announced operating results for the fourth fiscal quarter (“Q4 20”) and fiscal year 2020 (“FY 20”) ended January 31, 2021 versus the fourth fiscal quarter (“Q4 19”) and fiscal year 2019 (“FY 19”) ended February 2, 2020.

“2020 was a year of challenges and dramatic changes in the way we live. It was also a year where we were pushed to adapt and clarify what is important to us. I could not be prouder of the accomplishments of the team here at Williams-Sonoma. Their dedication was a vital part of our ability to substantially outperform the industry and gain market share. In Q4, despite shipping constraints and low retail traffic, we delivered another quarter of accelerating revenue and profitability with 26% comp growth and over 85% EPS growth. This strong end to the year, combined with our outperformance throughout 2020, drove record fiscal year revenue growth, substantial operating margin expansion and EPS that was almost double that of last year,” said Laura Alber, President and Chief Executive Officer.

“These record results reflect the power of our three key differentiators, which set us apart and have become increasingly relevant. They are:

1. Our in‐house design;
2. Our digital-first channel strategy; and
3. Our values.

We will continue to invest in these differentiators to drive growth and gain market share,” Alber continued.

Alber concluded, “Looking ahead, we are very optimistic about our runway for growth and profitability. All of our brands are starting the year strong, and we expect this strength to continue through 2021 and beyond based on a number of factors. First, it is the ongoing momentum of our growth initiatives and the increasing relevance of our three key differentiators. Second, it is the recovery in our retail traffic and our inventory levels as we move throughout the year. And third, it is the favorable macro trends that are expected to continue to benefit our business for the long-term, including high consumer confidence, a strong housing market, an accelerating shift to e-commerce, the expected continuation of working from home in some capacity post pandemic, and the importance of sustainability and values to the consumer. Against this backdrop, we are confident that we will deliver mid-to-high single digit revenue growth and operating margin expansion in 2021. Longer-term, we have accelerated our path to $10 billion in net revenues and see us hitting this milestone in the next five years, with operating margins at 15%.”

FOURTH QUARTER 2020

• Comparable brand revenue growth accelerates to 25.7%, with all brands driving comparable revenue growth of over 20%, including Williams Sonoma at 26.2%, Pottery Barn at 25.7%, Pottery Barn Kids and Teen at 25.7% and West Elm at 25.2%
• Demand comparable brand revenue growth of nearly 30%, which includes orders placed but not yet filled or charged to the customer in the quarter (See Exhibit 1)
• E-commerce comparable brand revenue growth of 47.9% with e-commerce penetration holding at almost 70% of total net revenues
• Gross margin of 42.1%, expanding 450bps and driven by higher year-over-year merchandise margins and occupancy leverage of approximately 190bps; occupancy costs were $181 million, flat to last year
• GAAP SG&A rate of 24.6%; non-GAAP SG&A rate of 24.2%, leveraging approximately 190bps and reflecting the strength of our topline performance and ongoing financial discipline
• GAAP operating margin of 17.5%; non-GAAP operating margin of 17.9%, leveraging approximately 630bps to the highest ever quarterly operating margin performance
• GAAP diluted EPS of $3.92; non-GAAP diluted EPS of $3.95, or 85% higher than last year

FISCAL YEAR 2020

• Comparable brand revenue growth accelerates to 17.0%, with double-digit comparable revenue growth in all brands, including Williams Sonoma at 23.8%, Pottery Barn Kids and Teen at 16.6%, Pottery Barn at 15.2% and West Elm at 15.2%
• GAAP operating margin of 13.4%; non-GAAP operating margin of 14.2%, leveraging approximately 560bps to an all-time high
• GAAP diluted EPS of $8.61; non-GAAP diluted EPS of $9.04, or almost double that of last year
• Robust liquidity position with over $1.2 billion in cash, reflecting approximately $1.3 billion in operating cash flow resulting from a year of record performance, enabling a quarterly dividend increase for the second time in six months and a new stock repurchase authorization of $1 billion, as announced in a separate press release today
• Strong returns to shareholders of over $307 million, evenly split between dividends and share repurchases
• GAAP ROIC of 35.6%; non-GAAP ROIC of 38.1%, compared to 22.4% last year, driven by record earnings and inventory optimization (See Exhibit 1)

GUIDANCE

Fiscal Year 2021

Given the ongoing strength of our business as we enter fiscal year 2021, the expected recovery in our retail traffic and inventory levels as we move throughout the year, as well as the macro trends that we believe will continue to benefit our business, we are planning for fiscal year 2021 financial performance to be in line with our long-term financial guidance of mid-to-high single digit net revenue growth and year-over-year non-GAAP operating margin expansion.

Long-Term Financial Guidance

For the long-term, we are planning for continued net revenue growth of mid-to-high single digits and non-GAAP operating margin expansion. Our strong results, combined with our three key differentiators of in-house design, digital-first channel strategy and values, and the macro trends that should benefit our business over the long-term, give us confidence in these future growth projections and an accelerated path to $10 billion in net revenues and 15% non-GAAP operating margins in the next five years.

CONFERENCE CALL AND WEBCAST INFORMATION

Williams-Sonoma, Inc. will host a live conference call today, March 17, 2021, at 2:00 P.M. (PT). The call, hosted by Laura Alber, President and Chief Executive Officer, will be open to the general public via live webcast and can be accessed 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 U.S. (“GAAP”). We have not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential variability and limited visibility of excluded items; these excluded items may include expenses related to the acquisition and operations of Outward, Inc., employment-related expense, tax legislation, a deferred tax asset and liability adjustment, impact of inventory write-offs, and impairment and early termination charges. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance 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. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve risks and uncertainties, as well as as­sumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include statements relating to: our ability to capture significant opportunities in the home furnishings industry; increase our market share; our ability to continue to improve performance; our focus on operational excellence; our ability to improve customers’ experience; our optimism about the future; our ability to maximize growth and maintain high profitability; our fiscal year 2021 guidance and long-term financial targets, including projected net revenue growth and operating margin expansion; our stock repurchase program and dividend expectations; our planned capital investments, and our proposed store openings and closures.

The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; the impact of the coronavirus on our global supply chain, retail store operations and customer demand, new interpretations of or changes to current accounting rules; our ability to anticipate consumer preferences and buying trends; dependence on timely introduction and customer acceptance of our merchandise; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays in store openings; competition from companies with concepts or products similar to ours; timely and effective sourcing of merchandise from our foreign and domestic vendors and delivery of merchandise through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; successful catalog management, including timing, sizing and merchandising; uncertainties in e-marketing, infrastructure and regulation; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; challenges associated with our increasing global presence; dependence on external funding sources for operating capital; disruptions in the financial markets; our ability to control employment, occupancy and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and market conditions and events, including war, conflict or acts of terrorism; the impact of current and potential future tariffs and our ability to mitigate impacts; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 2, 2020 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. We have not filed our Form 10-K for the fiscal year ended January 31, 2021. As a result all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file the Form 10-K. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

ABOUT WILLIAMS-SONOMA, INC.

Williams-Sonoma, Inc. is 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, and Mark and Graham — are marketed through e-commerce websites, direct-mail catalogs and retail stores. These brands are also part of The Key Rewards, our free-to-join loyalty program that offers members exclusive benefits across the Williams-Sonoma family of brands. We operate in the U.S., Puerto Rico, Canada, Australia and the United Kingdom, offer international shipping to customers worldwide, and have unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India, as well as e-commerce websites in certain locations. We are also proud to lead the industry with our Environmental, Social and Governance (“ESG”) efforts. Our company is Good By Design — we’ve deeply engrained sustainability into our business. From our factories to your home, we’re united in a shared purpose to care for our people and our planet.

For more information on our ESG efforts, please visit: https://sustainability.williams-sonomainc.com/

WSM-IR

Condensed Consolidated Statements of Earnings (unaudited)
		Thirteen Weeks Ended							Thirteen Weeks Ended
		January 31, 2021							February 2, 2020
In thousands, except per share amounts		$		% of Revenues					$		% of Revenues
Net revenues		$2,292,673		100	%				$1,843,590		100	%
Cost of goods sold		1,327,449		57.9	%				1,150,862		62.4	%
Gross profit		965,224		42.1	%				692,728		37.6	%
Selling, general and administrative expenses		563,137		24.6	%				489,042		26.5	%
Operating income		402,087		17.5	%				203,686		11.0	%
Interest expense, net		2,264		0.1	%				1,367		0.1	%
Earnings before income taxes		399,823		17.4	%				202,319		11.0	%
Income taxes		90,868		4.0	%				36,274		2.0	%
Net earnings		$308,955		13.5	%				166,045		9.0	%
Earnings per share (EPS):
Basic		$4.04							$2.15
Diluted		$3.92							$2.10
Shares used in calculation of EPS:
Basic		76,507							77,364
Diluted		78,845							78,912

4th Quarter Net Revenues and Comparable Brand Revenue Growth by Concept*
		Net Revenues (Millions)						Comparable Brand Revenue Growth
		Q4 20			Q4 19			Q4 20			Q4 19
Pottery Barn		$	799		$	640		25.7	%		6.7	%
West Elm			511			409		25.2	%		13.9	%
Williams Sonoma			540			441		26.2	%		3.3	%
Pottery Barn Kids and Teen			340			276		25.7	%		7.9	%
Other**			103			78		N/A			N/A
Total		$	2,293		$	1,844		25.7	%		7.6	%

*See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 13-week to 13-week basis for Q4 2020 and Q4 2019.
**Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and Graham.

Condensed Consolidated Statements of Earnings (unaudited)
		Fifty-Two Weeks Ended								Fifty-Two Weeks Ended
		January 31, 2021								February 2, 2020
					% of Revenues								% of Revenues
In thousands, except per share amounts		$								$
Net revenues		$	6,783,189		100	%				$	5,898,008		100	%
Cost of goods sold			4,146,920		61.1	%					3,758,916		63.7	%
Gross profit			2,636,269		38.9	%					2,139,092		36.3	%
Selling, general and administrative expenses			1,725,572		25.4	%					1,673,218		28.4	%
Operating income			910,697		13.4	%					465,874		7.9	%
Interest expense, net			16,231		0.2	%					8,853		0.2	%
Earnings before income taxes			894,466		13.2	%					457,021		7.7	%
Income taxes			213,752		3.2	%					100,959		1.7	%
Net earnings		$	680,714		10.0	%				$	356,062		6.0	%
Earnings per share (EPS):
Basic		$	8.81							$	4.56
Diluted		$	8.61							$	4.49
Shares used in calculation of EPS:
Basic			77,260								78,108
Diluted			79,055								79,225

Fiscal Year Net Revenues and Comparable Brand Revenue Growth by Concept*
		Net Revenues (Millions)						Comparable Brand Revenue Growth
		FY 20			FY 19			FY 20			FY 19
Pottery Barn		$	2,526		$	2,214		15.2	%		4.1	%
West Elm			1,682			1,467		15.2	%		14.4	%
Williams Sonoma			1,242			1,032		23.8	%		0.4	%
Pottery Barn Kids and Teen			1,043			909		16.6	%		4.5	%
Other**			290			276		N/A			N/A
Total		$	6,783		$	5,898		17.0	%		6.0	%

*See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 52-week to 52-week basis for fiscal 2020 and fiscal 2019.
**Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and Graham.

Condensed Consolidated Balance Sheets (unaudited)
In thousands, except per share amounts		Jan. 31, 2021				Feb. 2, 2020
ASSETS
Current assets
Cash and cash equivalents		$	1,200,337			$	432,162
Accounts receivable, net			143,728				111,737
Merchandise inventories, net			1,006,299				1,100,544
Prepaid expenses			93,822				90,426
Other current assets			22,894				20,766
Total current assets			2,467,080				1,755,635
Property and equipment, net			873,894				929,038
Operating lease right-of-use assets			1,086,009				1,166,383
Deferred income taxes, net			61,854				47,977
Goodwill			85,446				85,343
Other long-term assets, net			87,141				69,666
Total assets		$	4,661,424			$	4,054,042
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	542,992			$	521,235
Accrued expenses			267,592				175,003
Gift card and other deferred revenue			373,164				289,613
Income taxes payable			69,476				22,501
Current debt			299,350				299,818
Operating lease liabilities			209,754				227,923
Other current liabilities			85,672				73,462
Total current liabilities			1,848,000				1,609,555
Deferred lease incentives			20,612				27,659
Long-term operating lease liabilities			1,025,057				1,094,579
Other long-term liabilities			116,570				86,389
Total liabilities			3,010,239				2,818,182
Stockholders’ equity
Preferred stock: $.01 par value; 7,500 shares authorized; none issued			—				—
Common stock: $.01 par value; 253,125 shares authorized; 76,340 and 77,137 shares issued and outstanding at January 31, 2021 and February 2, 2020, respectively			764				772
Additional paid-in capital			638,375				605,822
Retained earnings			1,019,762				644,794
Accumulated other comprehensive loss			(7,117	)			(14,587	)
Treasury stock, at cost			(599	)			(941	)
Total stockholders’ equity			1,651,185				1,235,860
Total liabilities and stockholders’ equity		$	4,661,424			$	4,054,042

Retail Store Data (unaudited)
		November 1, 2020		Openings		Closings		January 31, 2021		February 2, 2020
Williams Sonoma		210		—		(12)		198		211
Pottery Barn		201		—		(6)		195		201
West Elm		122		—		(1)		121		118
Pottery Barn Kids		71		—		(14)		57		74
Rejuvenation		10		—		—		10		10
Total		614		—		(33)		581		614

Condensed Consolidated Statements of Cash Flows (unaudited)
In thousands		Fiscal 2020				Fiscal 2019
Cash flows from operating activities:
Net earnings		$	680,714			$	356,062
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization			188,655				187,759
(Gain) loss on disposal/impairment of assets			32,365				1,755
Amortization of deferred lease incentives			(5,783	)			(7,714	)
Non-cash lease expense			216,368				215,810
Deferred income taxes			(13,061	)			(2,557	)
Stock-based compensation expense			73,185				64,163
Other			(264	)			(26	)
Changes in:
Accounts receivable			(31,503	)			(5,034	)
Merchandise inventories			99,144				24,219
Prepaid expenses and other assets			(16,388	)			(3,189	)
Accounts payable			25,489				(11,051	)
Accrued expenses and other liabilities			129,142				13,259
Gift card and other deferred revenue			82,841				(640	)
Operating lease liabilities			(232,989	)			(226,257	)
Income taxes payable			46,933				735
Net cash provided by operating activities			1,274,848				607,294
Cash flows from investing activities:
Purchases of property and equipment			(169,513	)			(186,276	)
Other			629				728
Net cash used in investing activities			(168,884	)			(185,548	)
Cash flows from financing activities:
Borrowings under revolving line of credit			487,823				100,000
Repayments of borrowings under revolving line of credit			(487,823	)			(100,000	)
Payments of dividends			(157,645	)			(150,640	)
Repurchases of common stock			(150,000	)			(148,834	)
Tax withholdings related to stock-based awards			(31,729	)			(27,752	)
Debt issuance costs			(3,645	)			—
Net cash used in financing activities			(343,019	)			(327,226	)
Effect of exchange rates on cash and cash equivalents			5,230				(1,312	)
Net increase in cash and cash equivalents			768,175				93,208
Cash and cash equivalents at beginning of period			432,162				338,954
Cash and cash equivalents at end of period		$	1,200,337			$	432,162

Exhibit 1
GAAP to Non-GAAP Reconciliation
(unaudited)
(Dollars in thousands, except per share data)
		Thirteen Weeks Ended															Fifty-two Weeks Ended
		January 31, 2021							February 2, 2020								January 31, 2021							February 2, 2020
		$				% of revenues			$				% of revenues				$				% of revenues			$				% of revenues
Gross profit		$	965,224			42.1	%		$	692,728			37.6	%			$	2,636,269			38.9	%		$	2,139,092			36.3	%
Outward-related1			-							895								-							3,035
Inventory write-off2			-							-								11,378							-
Employment-related expense3			-							-								-							30
Non-GAAP gross profit		$	965,224			42.1	%		$	693,623			37.6	%			$	2,647,647			39.0	%		$	2,142,157			36.3	%
Selling, general and administrative expenses		$	563,137			24.6	%		$	489,042			26.5	%			$	1,725,572			25.4	%		$	1,673,218			28.4	%
Outward-related1			(3,174	)						(8,206	)							(12,092	)						(27,070	)
Asset impairment4			(5,094	)						-								(27,069	)						-
Employment-related expense3			-							(624	)							-							(8,366	)
Non-GAAP selling, general and administrative expenses		$	554,869			24.2	%		$	480,212			26.1	%			$	1,686,411			24.9	%		$	1,637,782			27.8	%
Operating income		$	402,087			17.5	%		$	203,686			11.0	%			$	910,697			13.4	%		$	465,874			7.9	%
Outward-related1			3,174							9,101								12,092							30,105
Inventory write-off2			-							-								11,378							-
Asset impairment4			5,094							-								27,069							-
Employment-related expense3			-							624								-							8,396
Non-GAAP operating income		$	410,355			17.9	%		$	213,411			11.6	%			$	961,236			14.2	%		$	504,375			8.6	%
		$				Tax rate			$				Tax rate				$				Tax rate			$				Tax rate
Income taxes		$	90,868			22.7	%		$	36,274			17.9	%			$	213,752			23.9	%		$	100,959			22.1	%
Outward-related1			248							1,484								1,913							5,959
Inventory write-off2			-							-								2,940							-
Asset impairment4			1,269							-								6,593							-
Employment-related expense3			-							(200	)							-							(502	)
Deferred tax asset/liability adjustment5			4,383							6,046								5,030							6,046
Tax legislation6			-							(64	)							-							(162	)
Non-GAAP income taxes		$	96,768			23.7	%		$	43,540			20.5	%			$	230,228			24.4	%		$	112,300			22.7	%
Diluted EPS		$	3.92						$	2.10							$	8.61						$	4.49
Outward-related1			0.04							0.10								0.13							0.30
Inventory write-off2			-							-								0.11							-
Asset impairment4			0.05							-								0.26							-
Employment-related expense3			-							0.01								-							0.11
Deferred tax asset/liability adjustment5			(0.06	)						(0.08	)							(0.06	)						(0.08	)
Non-GAAP Diluted EPS*		$	3.95						$	2.13							$	9.04						$	4.84
* Per share amounts may not sum due to rounding to the nearest cent per diluted share

SEC Regulation G – Non-GAAP Information

These tables include non-GAAP gross profit, gross margin, selling, general and administrative expense, 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.

Notes to Exhibit 1:

1. During Q4 2020 and FY2020, we incurred approximately $3.2 million and $12.1 million, respectively, associated with acquisition-related compensation expense and the amortization of acquired intangibles for Outward, Inc. During Q4 2019 and FY2019, we incurred approximately $9.1 million and $30.1 million, respectively, associated with acquisition-related compensation expense and the amortization of acquired intangibles, as well as the operations of Outward, Inc.
2. During FY2020, we incurred approximately $11.4 million of inventory write-offs for inventory with minor damage that we could not liquidate through our outlets due to store closures resulting from COVID-19.
3. During Q4 2019 and FY2019, we incurred approximately $0.6 million and $8.4 million, respectively, of employment-related expense that was primarily associated with severance-related reorganization expenses.
4. During Q4 2020 and FY2020, we incurred approximately $5.1 million and $27.1 million, respectively, of expense associated with store asset impairments due to the impact that COVID-19 had on our retail stores.
5. During Q4 2020 and FY2020, we recorded approximately $4.4 million and $5.0 million, respectively, of tax benefit resulting from a non-recurring adjustment to certain deferred tax assets and liabilities. During Q4 2019, we recorded an approximate $6.0 million tax benefit resulting from a non-recurring adjustment to a deferred tax liability.

6. During Q4 2019 and FY2019, we recorded a net income tax expense of approximately $0.1 million and $0.2 million, respectively, associated with tax legislation changes.

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 shareholder return. We define ROIC as non-GAAP net operating profit after tax (NOPAT), divided by our average invested capital. NOPAT is defined as non-GAAP operating income, plus rent expense, less estimated taxes at the company’s effective tax rate. Average invested capital is defined as the two-year average of total assets less current liabilities, plus capitalized leases, less cash in excess of $200 million.

ROIC is not a measure of financial performance under GAAP, and should be considered in addition to, and not as a substitute for other financial measures prepared in accordance with GAAP. Our method of determining ROIC may differ from other companies’ methods and therefore may not be comparable.

Demand Comparable Revenue

Demand comparable revenue is a metric we use to reference the total value of merchandise orders placed on a comparable period over period basis. These transactions reflect the demand for an order, and may not be indicative of when an order is fulfilled, shipped, or charged to the customer.

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FAQ

What were the Q4 2020 results for Williams-Sonoma (WSM)?

Williams-Sonoma reported a 26% increase in comparable brand revenue in Q4 2020, with GAAP diluted EPS rising to $3.92.

What is the FY 2020 revenue growth for WSM?

For FY 2020, Williams-Sonoma experienced significant revenue growth, with a GAAP operating margin of 13.4% and diluted EPS at $8.61.

What is Williams-Sonoma's guidance for FY 2021?

Williams-Sonoma expects mid-to-high single-digit revenue growth for FY 2021, supported by ongoing e-commerce momentum and recovering retail traffic.

How much cash does WSM have for operations?

Williams-Sonoma has a strong liquidity position with over $1.2 billion in cash, reflecting record operating cash flow.

What are the key growth drivers for WSM?

Key growth drivers for Williams-Sonoma include their digital-first channel strategy, in-house design capabilities, and favorable macro trends.