0001193125-19-312802.txt : 20191212 0001193125-19-312802.hdr.sgml : 20191212 20191212164125 ACCESSION NUMBER: 0001193125-19-312802 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 74 CONFORMED PERIOD OF REPORT: 20191103 FILED AS OF DATE: 20191212 DATE AS OF CHANGE: 20191212 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WILLIAMS SONOMA INC CENTRAL INDEX KEY: 0000719955 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES [5700] IRS NUMBER: 942203880 STATE OF INCORPORATION: CA FISCAL YEAR END: 0129 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-14077 FILM NUMBER: 191282383 BUSINESS ADDRESS: STREET 1: 3250 VAN NESS AVENUE CITY: SAN FRANCISCO STATE: CA ZIP: 94109 BUSINESS PHONE: 415-421-7900 MAIL ADDRESS: STREET 1: 3250 VAN NESS AVENUE CITY: SAN FRANCISCO STATE: CA ZIP: 94109 10-Q 1 d813200d10q.htm 10-Q 10-Q
0.010.010.010.010.010.01false2020Q30000719955January-29WILLIAMS SONOMA INCCaliforniaAmounts are shown net of shares withheld for employee taxes.Relates to our adoption of ASU 2016-02, Leases, in fiscal 2019. See Note A.Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $86.2 million and $79.0 million for the thirteen weeks ended November 3, 2019 and October 28, 2018, respectively, and approximately $260.5 million and $239.1 million for the thirty-nine weeks ended November 3, 2019 and October 28, 2018, respectively. Excludes 105,436 incremental shares released due to achievement of performance conditions above target. Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and Graham.Primarily relates to our adoption of ASU 2014-09, Revenue from Contracts with Customers, in fiscal 2018. 0000719955 2019-02-04 2019-11-03 0000719955 2019-11-03 0000719955 2019-02-03 0000719955 2018-10-28 0000719955 2018-01-29 2018-10-28 0000719955 2018-07-30 2018-10-28 0000719955 2019-08-05 2019-11-03 0000719955 2018-01-29 2018-04-29 0000719955 2019-05-06 2019-08-04 0000719955 2019-02-04 2019-05-05 0000719955 2018-04-30 2018-07-29 0000719955 2019-12-01 0000719955 2018-01-28 0000719955 2019-08-04 0000719955 2019-05-05 0000719955 2018-07-29 0000719955 2018-04-29 0000719955 wsm:EquityAwardProgramsMember 2019-11-03 0000719955 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember 2019-11-03 0000719955 us-gaap:OtherCurrentAssetsMember 2019-11-03 0000719955 us-gaap:StandbyLettersOfCreditMember 2019-11-03 0000719955 wsm:UnsecuredRevolvingLineOfCreditMember 2019-11-03 0000719955 us-gaap:RestrictedStockUnitsRSUMember 2019-11-03 0000719955 wsm:UnsecuredRevolvingLineOfCreditMember srt:MaximumMember 2019-11-03 0000719955 wsm:UnsecuredTermLoanFacilityMember 2019-11-03 0000719955 us-gaap:OtherCurrentLiabilitiesMember 2019-11-03 0000719955 wsm:StoredValueCardsMerchandiseSalesAndCreditCardIncentivesMember 2019-11-03 0000719955 wsm:OutwardIncMember 2019-11-03 0000719955 country:US 2019-11-03 0000719955 us-gaap:NonUsMember 2019-11-03 0000719955 us-gaap:AccountingStandardsUpdate201602Member 2019-11-03 0000719955 us-gaap:MachineryAndEquipmentMember srt:MinimumMember 2019-11-03 0000719955 us-gaap:MachineryAndEquipmentMember srt:MaximumMember 2019-11-03 0000719955 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember 2018-10-28 0000719955 us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember 2018-10-28 0000719955 us-gaap:OtherCurrentAssetsMember 2018-10-28 0000719955 wsm:UnsecuredRevolvingLineOfCreditMember 2018-10-28 0000719955 us-gaap:OtherCurrentLiabilitiesMember 2018-10-28 0000719955 country:US 2018-10-28 0000719955 us-gaap:NonUsMember 2018-10-28 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-02-04 2019-05-05 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2019-02-04 2019-05-05 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-02-04 2019-05-05 0000719955 us-gaap:RetainedEarningsMember 2019-02-04 2019-05-05 0000719955 us-gaap:CommonStockMember 2019-02-04 2019-05-05 0000719955 us-gaap:AdditionalPaidInCapitalMember 2019-02-04 2019-05-05 0000719955 us-gaap:TreasuryStockMember 2019-02-04 2019-05-05 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-05-06 2019-08-04 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2019-05-06 2019-08-04 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-05-06 2019-08-04 0000719955 us-gaap:RetainedEarningsMember 2019-05-06 2019-08-04 0000719955 us-gaap:CommonStockMember 2019-05-06 2019-08-04 0000719955 us-gaap:AdditionalPaidInCapitalMember 2019-05-06 2019-08-04 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-08-05 2019-11-03 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2019-08-05 2019-11-03 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-08-05 2019-11-03 0000719955 us-gaap:RetainedEarningsMember 2019-08-05 2019-11-03 0000719955 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-08-05 2019-11-03 0000719955 us-gaap:CommonStockMember 2019-08-05 2019-11-03 0000719955 us-gaap:AdditionalPaidInCapitalMember 2019-08-05 2019-11-03 0000719955 us-gaap:TreasuryStockMember 2019-08-05 2019-11-03 0000719955 wsm:PotteryBamMember 2019-08-05 2019-11-03 0000719955 wsm:WestElmMember 2019-08-05 2019-11-03 0000719955 wsm:WilliamsSonomaMember 2019-08-05 2019-11-03 0000719955 wsm:PotteryBamKidsAndTeenMember 2019-08-05 2019-11-03 0000719955 wsm:OtherMember 2019-08-05 2019-11-03 0000719955 us-gaap:CostOfSalesMember 2019-08-05 2019-11-03 0000719955 wsm:UnsecuredRevolvingLineOfCreditMember 2019-08-05 2019-11-03 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-30 2018-10-28 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2018-07-30 2018-10-28 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-07-30 2018-10-28 0000719955 us-gaap:RetainedEarningsMember 2018-07-30 2018-10-28 0000719955 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-07-30 2018-10-28 0000719955 us-gaap:CommonStockMember 2018-07-30 2018-10-28 0000719955 us-gaap:AdditionalPaidInCapitalMember 2018-07-30 2018-10-28 0000719955 us-gaap:TreasuryStockMember 2018-07-30 2018-10-28 0000719955 wsm:PotteryBamMember 2018-07-30 2018-10-28 0000719955 wsm:WestElmMember 2018-07-30 2018-10-28 0000719955 wsm:WilliamsSonomaMember 2018-07-30 2018-10-28 0000719955 wsm:PotteryBamKidsAndTeenMember 2018-07-30 2018-10-28 0000719955 wsm:OtherMember 2018-07-30 2018-10-28 0000719955 us-gaap:CostOfSalesMember 2018-07-30 2018-10-28 0000719955 wsm:UnsecuredRevolvingLineOfCreditMember 2018-07-30 2018-10-28 0000719955 us-gaap:RestrictedStockUnitsRSUMember wsm:AchievementMember 2019-02-04 2019-11-03 0000719955 us-gaap:RestrictedStockUnitsRSUMember 2019-02-04 2019-11-03 0000719955 wsm:UnsecuredRevolvingLineOfCreditMember 2019-02-04 2019-11-03 0000719955 wsm:OptionAwardsMember 2019-02-04 2019-11-03 0000719955 wsm:StockAwardsMember 2019-02-04 2019-11-03 0000719955 wsm:OptionAwardsMember srt:MinimumMember 2019-02-04 2019-11-03 0000719955 wsm:ServiceBasedOptionAwardsMember 2019-02-04 2019-11-03 0000719955 wsm:PerformanceBasedStockAwardsMember 2019-02-04 2019-11-03 0000719955 srt:MinimumMember wsm:NonEmployeeMember 2019-02-04 2019-11-03 0000719955 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-02-04 2019-11-03 0000719955 wsm:MarginBasedOnLeverageRatioMember wsm:UnsecuredRevolvingLineOfCreditMember srt:MinimumMember 2019-02-04 2019-11-03 0000719955 wsm:MarginBasedOnLeverageRatioMember wsm:UnsecuredRevolvingLineOfCreditMember srt:MaximumMember 2019-02-04 2019-11-03 0000719955 wsm:MarginBasedOnLeverageRatioMember wsm:UnsecuredTermLoanFacilityMember srt:MinimumMember 2019-02-04 2019-11-03 0000719955 wsm:MarginBasedOnLeverageRatioMember wsm:UnsecuredTermLoanFacilityMember srt:MaximumMember 2019-02-04 2019-11-03 0000719955 us-gaap:BaseRateMember wsm:UnsecuredRevolvingLineOfCreditMember srt:MinimumMember 2019-02-04 2019-11-03 0000719955 us-gaap:BaseRateMember wsm:UnsecuredRevolvingLineOfCreditMember srt:MaximumMember 2019-02-04 2019-11-03 0000719955 us-gaap:BaseRateMember wsm:UnsecuredTermLoanFacilityMember srt:MinimumMember 2019-02-04 2019-11-03 0000719955 us-gaap:BaseRateMember wsm:UnsecuredTermLoanFacilityMember srt:MaximumMember 2019-02-04 2019-11-03 0000719955 wsm:UnsecuredTermLoanFacilityMember 2019-02-04 2019-11-03 0000719955 wsm:StoredValueCardMemberMember 2019-02-04 2019-11-03 0000719955 wsm:ThreeDimagingDataAndIntellectualPropertyMember wsm:OutwardIncMember 2019-02-04 2019-11-03 0000719955 wsm:PotteryBamMember 2019-02-04 2019-11-03 0000719955 wsm:WestElmMember 2019-02-04 2019-11-03 0000719955 wsm:WilliamsSonomaMember 2019-02-04 2019-11-03 0000719955 wsm:PotteryBamKidsAndTeenMember 2019-02-04 2019-11-03 0000719955 wsm:OtherMember 2019-02-04 2019-11-03 0000719955 us-gaap:NewAccountingPronouncementMember 2019-02-04 2019-11-03 0000719955 us-gaap:CostOfSalesMember 2019-02-04 2019-11-03 0000719955 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-01-29 2018-10-28 0000719955 wsm:PotteryBamMember 2018-01-29 2018-10-28 0000719955 wsm:WestElmMember 2018-01-29 2018-10-28 0000719955 wsm:WilliamsSonomaMember 2018-01-29 2018-10-28 0000719955 wsm:PotteryBamKidsAndTeenMember 2018-01-29 2018-10-28 0000719955 wsm:OtherMember 2018-01-29 2018-10-28 0000719955 us-gaap:CostOfSalesMember 2018-01-29 2018-10-28 0000719955 wsm:UnsecuredRevolvingLineOfCreditMember 2018-01-29 2018-10-28 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2018-04-30 2018-07-29 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-30 2018-07-29 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-04-30 2018-07-29 0000719955 us-gaap:RetainedEarningsMember 2018-04-30 2018-07-29 0000719955 us-gaap:CommonStockMember 2018-04-30 2018-07-29 0000719955 us-gaap:AdditionalPaidInCapitalMember 2018-04-30 2018-07-29 0000719955 us-gaap:TreasuryStockMember 2018-04-30 2018-07-29 0000719955 wsm:OutwardIncMember 2017-11-27 2017-12-01 0000719955 wsm:OutwardIncMember 2017-12-01 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-29 2018-04-29 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-29 2018-04-29 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-29 2018-04-29 0000719955 us-gaap:RetainedEarningsMember 2018-01-29 2018-04-29 0000719955 us-gaap:CommonStockMember 2018-01-29 2018-04-29 0000719955 us-gaap:AdditionalPaidInCapitalMember 2018-01-29 2018-04-29 0000719955 us-gaap:TreasuryStockMember 2018-01-29 2018-04-29 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2019-02-03 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-02-03 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-02-03 0000719955 us-gaap:CommonStockMember 2019-02-03 0000719955 us-gaap:AdditionalPaidInCapitalMember 2019-02-03 0000719955 us-gaap:RetainedEarningsMember 2019-02-03 0000719955 us-gaap:TreasuryStockMember 2019-02-03 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-05-05 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-05-05 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2019-05-05 0000719955 us-gaap:CommonStockMember 2019-05-05 0000719955 us-gaap:AdditionalPaidInCapitalMember 2019-05-05 0000719955 us-gaap:RetainedEarningsMember 2019-05-05 0000719955 us-gaap:TreasuryStockMember 2019-05-05 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-08-04 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-08-04 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2019-08-04 0000719955 us-gaap:CommonStockMember 2019-08-04 0000719955 us-gaap:AdditionalPaidInCapitalMember 2019-08-04 0000719955 us-gaap:RetainedEarningsMember 2019-08-04 0000719955 us-gaap:TreasuryStockMember 2019-08-04 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2019-11-03 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-11-03 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-11-03 0000719955 us-gaap:CommonStockMember 2019-11-03 0000719955 us-gaap:AdditionalPaidInCapitalMember 2019-11-03 0000719955 us-gaap:RetainedEarningsMember 2019-11-03 0000719955 us-gaap:TreasuryStockMember 2019-11-03 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-10-28 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-10-28 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2018-10-28 0000719955 us-gaap:CommonStockMember 2018-10-28 0000719955 us-gaap:AdditionalPaidInCapitalMember 2018-10-28 0000719955 us-gaap:RetainedEarningsMember 2018-10-28 0000719955 us-gaap:TreasuryStockMember 2018-10-28 0000719955 us-gaap:RestrictedStockUnitsRSUMember 2019-02-03 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-07-29 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-29 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2018-07-29 0000719955 us-gaap:CommonStockMember 2018-07-29 0000719955 us-gaap:AdditionalPaidInCapitalMember 2018-07-29 0000719955 us-gaap:RetainedEarningsMember 2018-07-29 0000719955 us-gaap:TreasuryStockMember 2018-07-29 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-28 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-28 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-28 0000719955 us-gaap:CommonStockMember 2018-01-28 0000719955 us-gaap:AdditionalPaidInCapitalMember 2018-01-28 0000719955 us-gaap:RetainedEarningsMember 2018-01-28 0000719955 us-gaap:TreasuryStockMember 2018-01-28 0000719955 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-04-29 0000719955 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-29 0000719955 us-gaap:AccumulatedTranslationAdjustmentMember 2018-04-29 0000719955 us-gaap:CommonStockMember 2018-04-29 0000719955 us-gaap:AdditionalPaidInCapitalMember 2018-04-29 0000719955 us-gaap:RetainedEarningsMember 2018-04-29 0000719955 us-gaap:TreasuryStockMember 2018-04-29 iso4217:USD xbrli:shares xbrli:pure iso4217:USD xbrli:shares
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM
10-Q
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended November 3, 2019.
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
    
    
    
    
to
    
    
    
    
Commission File Number:
001-14077
 
WILLIAMS-SONOMA, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
 
94-2203880
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
     
3250 Van Ness Avenue, San Francisco, CA
 
94109
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (415)
 421-7900
(Former name, former address and former fiscal year, if changed since last report)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
 
Trading 
Symbol(s):
 
Name of each exchange
on which registered:
Common Stock, par value $.01 per share
 
WSM
 
New York Stock Exchange, Inc.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  
    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  
    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
Large accelerated filer
 
 
Accelerated filer
 
             
Non-accelerated
filer
 
 
Smaller reporting company
 
             
Emerging growth company
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes  
    No  
As of December 1, 2019, 77,467,381 shares of the registrant’s Common Stock were outstanding.
 
 
 

 
 
WILLIAMS-SONOMA, INC.
REPORT ON FORM
10-Q
FOR THE QUARTER ENDED NOVEMBER 3, 2019
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
 
 
PAGE
 
 
 
 
 
 
 
 
Item 1.
 
 
 
1
 
 
 
 
 
 
 
 
Item 2.
 
 
 
17
 
 
 
 
 
 
 
 
Item 3.
 
 
 
22
 
 
 
 
 
 
 
 
Item 4.
 
 
 
22
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 1.
 
 
 
23
 
 
 
 
 
 
 
 
Item 1A.
 
 
 
23
 
 
 
 
 
 
 
 
Item 2.
 
 
 
23
 
 
 
 
 
 
 
 
Item 3.
 
 
 
23
 
 
 
 
 
 
 
 
Item 4.
 
 
 
23
 
 
 
 
 
 
 
 
Item 5.
 
 
 
23
 
 
 
 
 
 
 
 
Item 6.
 
 
 
24
 
 

 
ITEM 1. FINANCIAL STATEMENTS
 
WILLIAMS-SONOMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
 
 
Thirteen
Weeks Ended
   
Thirty-nine
Weeks Ended
 
In thousands, except per share amounts
 
November 3,
2019
 
 
October 28,
2018
 
 
November 3,
2019
 
 
 
 
 
 
 
October 28,
2018
 
Net revenues
 
$
1,442,472
 
 
$
1,356,983
 
 
$
4,054,418
 
 
$
3,835,157
 
Cost of goods sold
 
 
924,300
 
 
 
861,999
 
 
 
2,608,054
 
 
 
2,444,067
 
Gross profit
 
 
518,172
 
 
 
494,984
 
 
 
1,446,364
 
 
 
1,391,090
 
Selling, general and administrative expenses
 
 
416,281
 
 
 
400,600
 
 
 
1,184,176
 
 
 
1,155,990
 
Operating income
 
 
101,891
 
 
 
94,384
 
 
 
262,188
 
 
 
235,100
 
Interest (income) expense, net
 
 
2,564
 
 
 
2,288
 
 
 
7,486
 
 
 
5,073
 
Earnings before income taxes
 
 
99,327
 
 
 
92,096
 
 
 
254,702
 
 
 
230,027
 
Income taxes
 
 
24,614
 
 
 
10,631
 
 
 
64,685
 
 
 
51,681
 
Net earnings
 
$
74,713
 
 
$
81,465
 
 
$
190,017
 
 
$
178,346
 
Basic earnings per share
 
$
0.96
 
 
$
1.01
 
 
$
2.43
 
 
$
2.17
 
Diluted earnings per share
 
$
0.94
 
 
$
1.00
 
 
$
2.39
 
 
$
2.15
 
Shares used in calculation of earnings per share:
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
77,897
 
 
 
80,475
 
 
 
78,356
 
 
 
82,070
 
Diluted
 
 
79,191
 
 
 
81,641
 
 
 
79,465
 
 
 
82,951
 
See Notes to Condensed Consolidated Financial Statements.
 
WILLIAMS-SONOMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
                                 
 
 
Thirteen
Weeks Ended
 
 
Thirty-nine
Weeks Ended
 
In thousands
 
November 3,
2019
 
 
October 28,
2018
 
 
November 3,
2019
 
 
October 28,
2018
 
Net earnings
  $
74,713
    $
81,465
    $
190,017
    $
 
 
 
 
 
 
 
178,346
 
Other comprehensive income (loss):
   
     
     
     
 
Foreign currency translation adjustments
   
1,783
     
(1,830
)    
(2,477
)    
(5,968
)
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $97, $(23), $163 and $378
   
5
     
(65
)    
77
     
1,064
 
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax of $187, $43, $221 and $19
   
(8
)    
(120
)    
(235
)    
(71
)
                                 
Comprehensive income
  $
76,493
    $
79,450
    $
187,382
    $
173,371
 
                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See Notes to Condensed Consolidated Financial Statements.
 
 
 
1
 

WILLIAMS-SONOMA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
                         
In thousands, except per share amounts
 
November 3,
2019
 
 
February 3,
2019
 
 
October 28,
2018
 
ASSETS
   
     
     
 
Current assets
   
     
     
 
Cash and cash equivalents
  $
155,025
    $
338,954
    $
164,414
 
Accounts receivable, net
   
110,131
     
107,102
     
113,582
 
Merchandise inventories, net
   
1,258,541
     
1,124,992
     
1,197,554
 
Prepaid expenses
   
115,288
     
101,356
     
94,071
 
Other current assets
   
20,260
     
21,939
     
21,805
 
                         
Total current assets
   
1,659,245
     
1,694,343
     
1,591,426
 
                         
Property and equipment, net
   
915,740
     
929,635
     
931,361
 
Operating lease
right-of-use
assets
   
1,194,061
     
—  
     
—  
 
Deferred income taxes, net
   
41,763
     
44,055
     
45,999
 
Goodwill
   
85,355
     
85,382
     
85,649
 
Other long-term assets, net
   
67,660
     
59,429
     
64,324
 
                         
Total assets
  $
3,963,824
    $
2,812,844
    $
2,718,759
 
                         
LIABILITIES AND STOCKHOLDERS’ EQUITY
   
     
     
 
Current liabilities
   
     
     
 
Accounts payable
  $
444,279
    $
526,702
    $
487,733
 
Accrued expenses
   
140,789
     
163,559
     
132,398
 
Gift card and other deferred revenue
   
296,157
     
290,445
     
275,567
 
Borrowings under revolving line of credit
   
100,000
     
—  
     
60,000
 
Income taxes payable
   
13,182
     
21,461
     
9,903
 
Operating lease liabilities
   
225,530
     
—  
     
—  
 
Other current liabilities
   
68,973
     
72,645
     
71,119
 
                         
Total current liabilities
   
1,288,910
     
1,074,812
     
1,036,720
 
                         
Deferred rent and lease incentives
   
29,388
     
201,374
     
205,143
 
Long-term debt
   
299,769
     
299,620
     
299,571
 
Long-term operating lease liabilities
   
1,127,403
     
—  
     
—  
 
Other long-term liabilities
   
86,461
     
81,324
     
85,388
 
                         
Total liabilities
   
2,831,931
     
1,657,130
     
1,626,822
 
                         
Commitments and contingencies – See Note F
   
     
     
 
Stockholders’ equity
   
     
     
 
Preferred stock: $.01 par value; 7,500 shares authorized; none issued
   
  
     
—  
     
—  
 
Common stock: $.01 par value; 253,125 shares authorized; 77,612, 78,813 and 80,282 shares issued and outstanding at November 3, 2019, February 3, 2019 and October 28, 2018, respectively
   
777
     
789
     
803
 
Additional
paid-in
capital
   
594,991
     
581,900
     
570,924
 
Retained earnings
   
550,774
     
584,333
     
532,172
 
Accumulated other comprehensive loss
   
(13,708
)    
(11,073
)    
(11,757
)
Treasury stock, at cost: 14, 2 and 2 shares as of November 3, 2019, February 3, 2019 and October 28, 2018, respectively
   
(941
)    
(235
)    
(205
)
                         
Total stockholders’ equity
   
1,131,893
     
1,155,714
     
1,091,937
 
                         
Total liabilities and stockholders’ equity
  $
3,963,824
    $
2,812,844
    $
2,718,759
 
                         
 
 
 
 
 
 
 
 
 
 
 
 
See Notes to Condensed Consolidated Financial Statements.
 
2
 

WILLIAMS-SONOMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
                                                         
 
 
 
 
 
Additional
Paid-in
Capital
 
 
Retained
Earnings
 
 
Accumulated
Other
Comprehensive
Income (Loss)
 
 
Treasury
Stock
 
 
Total
Stockholders’
Equity
 
 
 
Common Stock
 
In thousands
 
Shares
 
 
Amount
 
Balance at February 3, 2019
   
78,813
    $
789
    $
581,900
    $
584,333
    $
(11,073
)   $
(235
)   $
1,155,714
 
                                                         
Net earnings
   
—  
     
—  
     
—  
     
52,656
     
—  
     
—  
     
52,656
 
Foreign currency translation adjustments
   
—  
     
—  
     
—  
     
—  
     
(3,009
)    
—  
     
(3,009
)
Change in fair value of derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
204
     
—  
     
204
 
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
(67
)    
—  
     
(67
)
Conversion/release of stock-based awards
1
   
571
     
5
     
(25,298
)    
—  
     
—  
     
(113
)    
(25,406
)
Repurchases of common stock
   
(576
)    
(6
)    
(2,874
)    
(30,010
)    
—  
     
(958
)    
(33,848
)
Reissuance of treasury stock under stock-based compensation plans
1
   
—  
     
—  
     
(332
)    
—  
     
—  
     
332
     
—  
 
Stock-based compensation expense
   
—  
     
—  
     
18,376
     
—  
     
—  
     
—  
     
18,376
 
Dividends declared
   
—  
     
—  
     
—  
     
(39,549
)    
—  
     
—  
     
(39,549
)
Adoption of accounting pronouncements
2
   
—  
     
—  
     
—  
     
(3,303
)    
—  
     
—  
     
(3,303
)
                                                         
Balance at May 5, 2019
   
78,808
    $
788
    $
571,772
    $
564,127
    $
(13,945
)   $
(974
)   $
1,121,768
 
                                                         
Net earnings
   
—  
     
—  
     
—  
     
62,648
     
—  
     
—  
     
62,648
 
Foreign currency translation adjustments
   
—  
     
—  
     
—  
     
—  
     
(1,251
)    
—  
     
(1,251
)
Change in fair value of derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
(132
)    
—  
     
(132
)
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
(160
)    
—  
     
(160
)
Conversion/release of stock-based awards
1
   
31
     
1
     
(482
)    
—  
     
—  
     
—  
     
(481
)
Repurchases of common stock
   
(636
)    
(6
)    
(3,170
)    
(35,107
)    
—  
     
—  
     
(38,283
)
Stock-based compensation expense
   
—  
     
—  
     
16,708
     
—  
     
—  
     
—  
     
16,708
 
Dividends declared
   
—  
     
—  
     
—  
     
(39,214
)    
—  
     
—  
     
(39,214
)
                                                         
Balance at August 4, 2019
   
78,203
    $
783
    $
584,828
    $
552,454
    $
(15,488
)   $
(974
)   $
1,121,603
 
Net earnings
   
—  
     
—  
     
—  
     
74,713
     
—  
     
—  
     
74,713
 
Foreign currency translation adjustments
   
—  
     
—  
     
—  
     
—  
     
1,783
     
—  
     
1,783
 
Change in fair value of derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
5
     
—  
     
5
 
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
(8
)    
—  
     
(8
)
Conversion/release of stock-based awards
1
   
19
     
—  
     
(715
)    
—  
     
—  
     
(21
)    
(736
)
Repurchases of common stock
   
(610
)    
(6
)    
(3,068
)    
(37,509
)    
—  
     
—  
     
(40,583
)
Reissuance of treasury stock under stock-based compensation plans
1
 
 
—  
 
 
 
—  
 
 
 
(54
)
 
 
—  
 
 
 
—  
 
 
 
54
 
 
 
—  
 
Stock-based compensation expense
   
—  
     
—  
     
14,000
     
—  
     
—  
     
—  
     
14,000
 
Dividends declared
   
—  
     
—  
     
—  
     
(38,884
)    
—  
     
—  
     
(38,884
)
Balance at November 3, 2019
 
 
77,612
 
 
$
777
 
 
$
594,991
 
 
$
550,774
 
 
$
(13,708
)
 
$
(941
)
 
$
1,131,893
 
                                                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
Amounts are shown net of shares withheld for employee taxes.
 
 
 
2
Relates to our adoption of ASU
2016-02,
Leases, in fiscal 2019. See Note A.
 
 
 
See Notes to Condensed Consolidated Financial Statements.
 
3
 

WILLIAMS-SONOMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
 
                                                         
 
 
 
 
Additional
Paid-in
Capital
 
 
Retained
Earnings
 
 
Accumulated
Other
Comprehensive
Income (Loss)
 
 
Treasury
Stock
 
 
Total
Stockholders’
Equity
 
 
Common Stock
 
In thousands
 
 
 
 
 
 
 
Shares
 
 
Amount
 
Balance at January 28, 2018
   
83,726
    $
837
    $
562,814
    $
647,422
    $
(6,782
)   $
(725
)   $
1,203,566
 
                                                         
Net earnings
   
—  
     
—  
     
—  
     
45,168
     
—  
     
—  
     
45,168
 
Foreign currency translation adjustments
   
—  
     
—  
     
—  
     
—  
     
(1,145
)    
—  
     
(1,145
)
Change in fair value of derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
1,123
     
—  
     
1,123
 
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
49
     
—  
     
49
 
Conversion/release of stock-based awards
1
   
228
     
3
     
(7,213
)    
—  
     
—  
     
(226
)    
(7,436
)
Repurchases of common stock
   
(732
)    
(7
)    
(3,437
)    
(34,269
)    
—  
     
—  
     
(37,713
)
Reissuance of treasury stock under stock-based compensation plans
1
   
—  
     
—  
     
(290
)    
(358
)    
—  
     
648
     
—  
 
Stock-based compensation expense
   
—  
     
—  
     
12,811
     
—  
     
—  
     
—  
     
12,811
 
Dividends declared
   
—  
     
—  
     
—  
     
(36,877
)    
—  
     
—  
     
(36,877
)
Adoption of accounting pronouncements
2
   
—  
     
—  
     
—  
     
17,688
     
—  
     
—  
     
17,688
 
                                                         
Balance at April 29, 2018
   
83,222
    $
833
    $
564,685
    $
638,774
    $
(6,755
)   $
(303
)   $
1,197,234
 
                                                         
Net earnings
   
—  
     
—  
     
—  
     
51,713
     
—  
     
—  
     
51,713
 
Foreign currency translation adjustments
   
—  
     
—  
     
—  
     
—  
     
(2,993
)    
—  
     
(2,993
)
Change in fair value of derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
6
     
—  
     
6
 
Conversion/release of stock-based awards
1
   
175
     
2
     
(4,869
)    
—  
     
—  
     
(32
)    
(4,899
)
Repurchases of common stock
   
(2,409
)    
(25
)    
(11,431
)    
(125,649
)    
—  
     
—  
     
(137,105
)
Reissuance of treasury stock under stock-based compensation plans
1
   
—  
     
—  
     
(72
)    
(5
)    
—  
     
77
     
—  
 
Stock-based compensation expense
   
—  
     
—  
     
13,497
     
—  
     
—  
     
—  
     
13,497
 
Dividends declared
   
—  
     
—  
     
—  
     
(36,465
)    
—  
     
—  
     
(36,465
)
                                                         
Balance at July 29, 2018
   
80,988
    $
810
    $
561,810
    $
528,368
    $
(9,742
)   $
(258
)   $
1,080,988
 
Net earnings
   
—  
     
—  
     
—  
     
81,465
     
—  
     
—  
     
81,465
 
Foreign currency translation adjustments
   
—  
     
—  
     
—  
     
—  
     
(1,830
)
   
—  
     
(1,830
)
Change in fair value of derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
(65
)
   
—  
     
(65
)
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax
   
—  
     
—  
     
—  
     
—  
     
(120
)
   
—  
     
(120
)
Conversion/release of stock-based awards
1
   
37
     
—  
     
(1,571
)
   
—  
     
—  
     
—  
     
(1,571
)
Repurchases of common stock
   
(743
)
   
(7
)
   
(3,604
)
   
(41,792
)
   
—  
     
—  
     
(45,403
)
Reissuance of treasury stock under stock-based compensation plans
1
 
 
—