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SEGMENT REPORTING
 6 Months Ended
Aug. 02, 2026
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 and retail stores, 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 1, 2026.
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 2, 2026 and August 3, 2025.
For the Thirteen Weeks Ended
For the Twenty-six Weeks Ended
(In thousands)August 2, 2026August 3, 2025August 2, 2026August 3, 2025
Net revenues$1,959,757 $1,836,760 $3,765,213 $3,566,873 
Less:
Cost of merchandise and shipping739,807 770,759 1,548,282 1,537,395 
Occupancy, excluding depreciation152,104 145,396 300,388 287,225 
Employment319,777 312,467 606,464 582,897 
Advertising143,945 133,419 265,746 251,169 
Other segment items 1
99,355 89,798 192,529 176,675 
Depreciation and amortization expense55,974 56,862 111,321 112,740 
Operating income
448,795 328,059 740,483 618,772 
Interest income, net12,412 9,080 19,319 18,613 
Earnings before income taxes
$461,207 $337,139 $759,802 $637,385 
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 2, 2026 and August 3, 2025.
For the Thirteen Weeks Ended 1
For the Twenty-six Weeks Ended 1
(In thousands)August 2, 2026August 3, 2025August 2, 2026August 3, 2025
Pottery Barn$770,808 $724,579 $1,479,255 $1,419,671 
West Elm496,251 468,550 967,425 905,635 
Williams Sonoma 2
268,828 249,053 540,370 506,546 
Pottery Barn Kids and Teen297,438 286,749 537,587 516,465 
Other 3
126,432 107,829 240,576 218,556 
Total 4
$1,959,757 $1,836,760 $3,765,213 $3,566,873 
1Includes business-to-business net revenues within each brand.
2Includes Williams Sonoma Home net revenues.
3Primarily consists of net revenues from Rejuvenation, Mark and Graham, our international franchise operations, GreenRow and Dormify.
4Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom, and our franchise businesses) of $80.7 million and $78.0 million for the thirteen weeks ended August 2, 2026 and August 3, 2025, respectively, and approximately $154.1 million and $155.8 million for the twenty-six weeks ended August 2, 2026 and August 3, 2025, respectively.
Long-lived assets by geographic location, which excludes deferred income taxes, goodwill, and intangible assets, are as follows:
As of
(In thousands)
August 2,
2026
February 1, 2026
August 3,
2025
U.S.$2,536,840 $2,448,273 $2,320,554 
International53,929 57,552 63,590 
Total$2,590,769 $2,505,825 $2,384,144