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SEGMENT REPORTING
 9 Months Ended
Nov. 02, 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 thirty-nine weeks ended November 2, 2025 and October 27, 2024.
For the Thirteen Weeks Ended
For the Thirty-nine Weeks Ended
(In thousands)November 2, 2025October 27, 2024November 2, 2025October 27, 2024
Net revenues$1,882,814 $1,800,668 $5,449,687 $5,249,323 
Less:
Cost of merchandise and shipping808,545 788,152 2,345,939 2,244,301 
Occupancy, excluding depreciation149,845 138,361 437,070 419,832 
Employment312,276 288,569 895,173 843,741 
Advertising141,011 131,579 392,180 398,600 
Other segment items 1
95,053 91,189 271,728 272,897 
Depreciation and amortization expense56,941 57,787 169,682 169,909 
Operating income
319,143 305,031 937,915 900,043 
Interest income, net9,785 11,802 28,398 43,063 
Earnings before income taxes
$328,928 $316,833 $966,313 $943,106 
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 thirty-nine weeks ended November 2, 2025 and October 27, 2024.
 
For the Thirteen Weeks Ended 1
For the Thirty-nine Weeks Ended 1
(In thousands)November 2, 2025October 27, 2024November 2, 2025October 27, 2024
Pottery Barn$741,526 $718,240 $2,161,197 $2,120,898 
West Elm468,243 450,490 1,373,878 1,339,578 
Williams Sonoma276,417 252,125 782,963 730,231 
Pottery Barn Kids and Teen291,382 287,259 807,847 768,469 
Other 2
105,246 92,554 323,802 290,147 
Total 3
$1,882,814 $1,800,668 $5,449,687 $5,249,323 
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 $77.1 million and $76.8 million for the thirteen weeks ended November 2, 2025 and October 27, 2024, respectively, and $232.9 million and $229.3 million for the thirty-nine weeks ended November 2, 2025 and October 27, 2024, respectively.
Long-lived assets by geographic location, which excludes deferred income taxes, goodwill, and intangible assets, are as follows:
As of
(In thousands)November 2, 2025February 2, 2025
October 27, 2024
U.S.$2,421,034 $2,268,691 $2,212,022 
International61,551 68,425 70,569 
Total$2,482,585 $2,337,116 $2,282,591