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SEGMENT REPORTING
 6 Months Ended
Aug. 03, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
We identify our operating segments according to how our business activities are managed and evaluated. Each of our brands are operating segments. Because they share similar economic and other qualitative characteristics, we have aggregated our operating segments into a single reportable segment.
Our single reportable segment derives revenues from sales of merchandise through our e-commerce websites, retail stores and direct-mail catalogs, and includes shipping fees received from customers for delivery of merchandise to their homes. The accounting policies of our single reportable segment are described in the Summary of Significant Accounting Policies within Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended February 2, 2025.
Our chief operating decision maker (“CODM”) is our Chief Executive Officer. The CODM assesses performance for our single reportable segment and decides how to allocate resources based on operating income, which is reported on the Condensed Consolidated Statements of Earnings. Segment balance sheet information is not regularly provided to the CODM. The CODM uses operating income to decide whether to reinvest profits into our operating segments or allocate to other purposes, such as for repurchases of common stock, payment of dividends or acquisitions.
Operating income is used to monitor budget versus actual results. The CODM also uses operating income in competitive analysis by benchmarking to our peers. The competitive analysis, along with the monitoring of budget versus actual results, is used in assessing performance of the segment.
The following table summarizes reported net revenues, significant segment expenses, operating income and earnings before income taxes for the thirteen and twenty-six weeks ended August 3, 2025 and July 28, 2024.
For the Thirteen Weeks Ended
For the Twenty-six Weeks Ended
(In thousands)August 3, 2025July 28, 2024August 3, 2025July 28, 2024
Net revenues$1,836,760 $1,788,307 $3,566,873 $3,448,655 
Less:
Cost of merchandise and shipping770,759 787,124 1,537,395 1,456,149 
Occupancy, excluding depreciation145,396 141,699 287,225 281,471 
Employment312,467 286,085 582,897 555,172 
Advertising133,419 143,771 251,169 267,021 
Other segment items 1
89,798 95,989 176,675 181,708 
Depreciation and amortization expense56,862 55,739 112,740 112,122 
Operating income
328,059 277,900 618,772 595,012 
Interest income, net9,080 15,208 18,613 31,261 
Earnings before income taxes
$337,139 $293,108 $637,385 $626,273 
1Other segment items within operating income include general expenses, which consist primarily of credit card fees, data processing expenses and administrative expenses.

The following table summarizes our net revenues by brand for the thirteen and twenty-six weeks ended August 3, 2025 and July 28, 2024.
 
For the Thirteen Weeks Ended 1
For the Twenty-six Weeks Ended 1
(In thousands)August 3, 2025July 28, 2024August 3, 2025July 28, 2024
Pottery Barn$724,579 $725,323 $1,419,671 $1,402,658 
West Elm468,550 458,779 905,635 889,088 
Williams Sonoma249,053 239,867 506,546 478,106 
Pottery Barn Kids and Teen286,749 259,408 516,465 481,210 
Other 2
107,829 104,930 218,556 197,593 
Total 3
$1,836,760 $1,788,307 $3,566,873 $3,448,655 
1Includes business-to-business net revenues within each brand.
2Primarily consists of net revenues from Rejuvenation, our international franchise operations, Mark and Graham, and GreenRow.
3Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom, and our franchise businesses) of approximately $78.0 million and $79.0 million for the thirteen weeks ended August 3, 2025 and July 28, 2024, respectively, and approximately $155.8 million and $152.5 million for the twenty-six weeks ended August 3, 2025 and July 28, 2024, respectively.
Long-lived assets by geographic location, which excludes deferred income taxes, goodwill, and intangible assets, are as follows:
As of
(In thousands)August 3, 2025February 2, 2025
July 28, 2024
U.S.$2,320,554 $2,268,691 $2,199,597 
International63,590 68,425 71,569 
Total$2,384,144 $2,337,116 $2,271,166