ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
Title of each class: |
Trading Symbol(s): |
Name of each exchange on which registered: | ||
PAGE |
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PART I |
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Item 1. | 3 | |||||
Item 1A. | 8 | |||||
Item 1B. | 29 | |||||
Item 2. | 29 | |||||
Item 3. | 30 | |||||
Item 4. | 30 | |||||
PART II |
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Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 31 | ||||
Item 6. | 33 | |||||
Item 7. | 34 | |||||
Item 7A. | 45 | |||||
Item 8. | 46 | |||||
Item 9. | 72 | |||||
Item 9A. | 72 | |||||
Item 9B. | 73 | |||||
PART III |
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Item 10. | 74 | |||||
Item 11. | 74 | |||||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 74 | ||||
Item 13. | 74 | |||||
Item 14. | 74 | |||||
PART IV |
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Item 15. | 75 | |||||
Item 16. | 81 |
ITEM 1. |
BUSINESS |
• | Incident and hazard reporting; |
• | Standard operating procedures aimed at reducing risk of injury; |
• | Associate and management training; |
• | Promotion of best practices; and |
• | Measurement of key safety metrics. |
• | Temporarily closing our stores and corporate offices, and implementing temporary work-from-home-policies; |
• | Establishing strict safety protocols and procedures company-wide, including social distancing measures, enhanced sanitization, daily wellness checks and supplying personal protective gear such as masks and gloves; |
• | Developing and distributing a playbook to guide the safe return to offices, stores, and work sites; and |
• | Creating and refining protocols to address actual and suspected COVID-19 cases and potential exposure of our team members, customers, and trade partners. |
• | Increased company minimum wage to $14 per hour; |
• | Provided special bonuses to all frontline workers; |
• | Approved special bonuses to high-performing non-executive associates to reward extraordinary efforts in COVID-19 environment; |
• | Created a dedicated associate hotline to provide real time support for any COVID-19-related issues; |
• | Reinforced social distancing through signage, floor markers, taped grid patterns on floors, and directional arrows; |
• | Continued telehealth support and employee assistance programs; and |
• | Provided special wellness resources and tools. |
ITEM 1A. |
RISK FACTORS |
• | Our business has been and may continue to be materially impacted by the COVID-19 pandemic, and the duration and extent to which this will impact our future financial performance remains uncertain. |
• | Declines in general economic conditions, and the resulting impact on consumer confidence and consumer spending, could adversely impact our results of operations. |
• | We are unable to control many of the factors affecting consumer spending, and declines in consumer spending on home furnishings and kitchen products in general could reduce demand for our products. |
• | If we are unable to identify and analyze factors affecting our business, anticipate changing consumer preferences and buying trends, and manage our inventory commensurate with customer demand, our sales levels and operating results may decline. |
• | Our business and operating results may be harmed if we are unable to timely and effectively deliver merchandise to our stores and customers. |
• | Our failure to successfully manage our order-taking and fulfillment operations could have a negative impact on our business and operating results |
• | We must protect and maintain our brand image and reputation. |
• | Our sales may be negatively impacted by increasing competition from companies with brands or products similar to ours. |
• | Our facilities and systems, as well as those of our vendors, are vulnerable to natural disasters, adverse weather conditions, technology issues and other unexpected events, any of which could result in an interruption in our business and harm our operating results. |
• | If we are unable to effectively manage our e-commerce business and digital marketing efforts, our reputation and operating results may be harmed. |
• | Declines in our comparable brand revenues may harm our operating results and cause a decline in the market price of our common stock. |
• | Our failure to successfully anticipate merchandise returns might have a negative impact on our business. |
• | Our failure to successfully manage the costs and performance of our catalog mailings might have a negative impact on our business. |
• | If we are unable to successfully manage the complexities associated with an omni-channel and multi-brand business, we may suffer declines in our existing business and our ability to attract new business. |
• | A number of factors that affect our ability to successfully open new stores or close existing stores are beyond our control, and these factors may harm our ability to expand or contract our retail operations and harm our ability to increase our sales and profits. |
• | Our inability or failure to protect our intellectual property would have a negative impact on our brands, reputation and operating results. |
• | We outsource certain aspects of our business to third-party vendors and are in the process of insourcing certain business functions from third-party vendors, both of which subject us to risks. |
• | If we fail to attract and retain key personnel, our business and operating results may be harmed. |
• | If we are unable to introduce new brands and brand extensions successfully, or to reposition or close existing brands, our business and operating results may be negatively impacted. |
• | We may be subject to legal proceedings that could result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. |
• | We may be exposed to cybersecurity risks and costs associated with credit card fraud, identity theft and business interruption that could cause us to incur unexpected expenses and loss of revenue. |
• | We receive, process, store, use and share data, some of which contains personal information, which subjects us to complex and evolving governmental regulation and other legal obligations related to data privacy, data protection and other matters. |
• | We are undertaking certain systems changes that might disrupt our business operations. |
• | Our dependence on foreign vendors and our increased global operations subject us to a variety of risks and uncertainties that could impact our operations and financial results. |
• | We depend on foreign vendors and third-party agents for timely and effective sourcing of our merchandise, and we may not be able to acquire products in sufficient quantities and at acceptable prices to meet our needs. |
• | If our vendors fail to adhere to our quality control standards and test protocols, we may delay a product launch or recall a product, which could damage our reputation and negatively affect our operations and financial results. |
• | Our efforts to expand globally may not be successful and could negatively impact the value of our brands. |
• | We have limited experience operating on a global basis and our failure to effectively manage the risks and challenges inherent in a global business could adversely affect our business, operating results and financial condition and growth prospects. |
• | Any significant changes in tax, trade or other policies in the U.S. or other countries, including policies that restrict imports or increase import tariffs, could have a material adverse effect on our results of operations. |
• | Tariffs could result in increased prices and/or costs of goods or delays in product received from our vendors and could adversely affect our results of operations. |
• | Fluctuations in our tax obligations and effective tax rate may result in volatility of our operating results. |
• | We may require funding from external sources, which may not be available at the levels we require, or may cost more than we expect. |
• | Our operating results may be harmed by unsuccessful management of our employment, occupancy and other operating costs, and the operation and growth of our business may be harmed if we are unable to attract qualified personnel. |
• | Our inability to obtain commercial insurance at acceptable rates or our failure to adequately reserve for self-insured exposures might increase our expenses and have a negative impact on our business. |
• | If our operating and financial performance in any given period does not meet the guidance that we have provided to the public or the expectations of our investors and analysts, our stock price may decline. |
• | A variety of factors, including seasonality and the economic environment, may cause our quarterly operating results to fluctuate, leading to volatility in our stock price. |
• | Disruptions in the financial markets may adversely affect our liquidity and capital resources and our business. |
• | Changes in the method of determining the London Interbank Offered Rate, or LIBOR, or the replacement of LIBOR with an alternative reference rate, may adversely affect our financial condition and results of operations. |
• | If we are unable to pay quarterly dividends or repurchase our stock at intended levels, our reputation and stock price may be harmed. |
• | If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired and our investors’ views of us could be harmed. |
• | Changes to accounting rules or regulations may adversely affect our operating results. |
• | In preparing our financial statements we make certain assumptions, judgments and estimates that affect the amounts reported, which, if not accurate, may impact our financial results. |
• | Changes to estimates related to our cash flow projections may cause us to incur impairment charges related to our long-lived assets for our retail store locations and other property and equipment, including information technology systems, as well as goodwill. |
• | anticipating and quickly responding to changing consumer demands or preferences better than our competitors; |
• | maintaining favorable brand recognition and achieving customer perception of value; |
• | effectively marketing and competitively pricing our products to consumers in several diverse market segments; |
• | effectively managing and controlling our costs; |
• | effectively managing increasingly competitive promotional activity; |
• | effectively attracting new customers; |
• | developing new innovative shopping experiences, like mobile and tablet applications that effectively engage today’s digital customers; |
• | developing innovative, high-quality products in colors and styles that appeal to consumers of varying age groups, tastes and regions, and in ways that favorably distinguish us from our competitors; and |
• | effectively managing our supply chain and distribution strategies in order to provide our products to our consumers on a timely basis and minimize returns, replacements and damaged products. |
• | general economic conditions; |
• | our identification of, and the availability of, suitable store locations; |
• | our success in negotiating new leases and amending, subleasing or terminating existing leases on acceptable terms; |
• | the success of other retail stores in and around our retail locations; |
• | our ability to secure required governmental permits and approvals; |
• | our hiring and training of skilled store operating personnel, especially management; |
• | the availability of financing on acceptable terms, if at all; and |
• | the financial stability of our landlords and potential landlords. |
• | increased management, infrastructure and legal compliance costs, including the cost of real estate and labor in those markets; |
• | increased financial accounting and reporting requirements and complexities; |
• | increased operational and tax complexities, including managing our inventory globally; |
• | the diversion of management attention away from our core business; |
• | general economic conditions, changes in diplomatic and trade relationships, including the imposition of new or increased tariffs, political and social instability, war and acts of terrorism, outbreaks of diseases (such as the COVID-19 pandemic) and natural disasters in each country or region; |
• | economic uncertainty around the world; |
• | compliance with foreign laws and regulations and the risks and costs of non-compliance with such laws and regulations; |
• | compliance with U.S. laws and regulations for foreign operations; |
• | dependence on certain third parties, including vendors and other service providers, with whom we do not have extensive experience; |
• | fluctuations in foreign currency exchange rates and the related effect on our financial results, and the use of foreign exchange hedging programs to mitigate such risks; |
• | growing cash balances in foreign jurisdictions which may be subject to repatriation restrictions; |
• | reduced or varied protection for intellectual property rights in some countries and practical difficulties of enforcing such rights abroad; and |
• | compliance with the laws of foreign taxing jurisdictions and the overlapping of different tax regimes. |
ITEM 1B. |
UNRESOLVED STAFF COMMENTS |
Location | Occupied Square Footage (Approximate) | |||
Distribution and Manufacturing Facilities |
||||
Mississippi |
2,258,000 | |||
New Jersey |
2,103,000 | |||
California |
2,030,000 | |||
Texas |
1,298,000 | |||
Georgia |
1,075,000 | |||
Tennessee |
603,000 | |||
North Carolina |
442,000 | |||
Ohio |
153,000 | |||
Massachusetts |
140,000 | |||
Florida |
135,000 | |||
Oregon |
91,000 | |||
Colorado |
80,000 | |||
Corporate Facilities |
||||
California |
269,000 | |||
New York |
238,000 | |||
Oregon |
49,000 | |||
Customer Care Centers |
||||
Nevada |
36,000 | |||
Other |
32,000 |
ITEM 5. |
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
* | $100 invested on 1/31/16 in stock or index, including reinvestment of dividends. Fiscal year ending January 31, 2021. |
1/31/16 |
1/29/17 |
1/28/18 |
2/3/19 |
2/2/20 |
1/31/21 | |||||||
Williams-Sonoma, Inc. |
$100.00 | $94.58 | $109.64 | $114.38 | $152.80 | $287.90 | ||||||
NYSE Composite Index |
$100.00 | $119.63 | $146.03 | $137.82 | $156.52 | $169.59 | ||||||
S&P Retailing |
$100.00 | $120.09 | $174.49 | $186.29 | $219.46 | $316.05 |
A. | The lines represent monthly index levels derived from compounded daily returns that include all dividends. |
B. | The indices are re-weighted daily, using the market capitalization on the previous trading day. |
C. | If the monthly interval, based on the fiscal year-end, is not a trading day, the preceding trading day is used. |
Fiscal period | |
Total Number of Shares Purchased 1 |
|
Average Price Paid Per Share |
|
Total Number of Shares Purchased as Part of a Publicly Announced Program 1 |
|
Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program |
||||||||||
November 2, 2020 – November 29, 2020 |
125,310 | $ 98.91 | 125,310 | $ 453,539,000 | ||||||||||||||
November 30, 2020 – December 27, 2020 |
116,800 | $ 108.75 | 116,800 | $ 440,837,000 | ||||||||||||||
December 28, 2020 – January 31, 2021 |
134,655 | $ 117.75 | 134,655 | $ 424,982,000 | ||||||||||||||
Total |
376,765 | $ 108.69 | 376,765 | $ 424,982,000 |
1 |
Excludes shares withheld for employee taxes upon vesting of stock-based awards. |
ITEM 6. |
SELECTED FINANCIAL DATA |
In thousands, except percentages, per share amounts and retail stores data |
Fiscal 2020 (52 Weeks) |
Fiscal 2019 (52 Weeks) |
Fiscal 2018 1 (53 Weeks) |
Fiscal 2017 (52 Weeks) |
Fiscal 2016 (52 Weeks) |
|||||||||||||||
Results of Operations |
||||||||||||||||||||
Net revenues |
$ | 6,783,189 | $ | 5,898,008 | $ | 5,671,593 | $ | 5,292,359 | $ | 5,083,812 | ||||||||||
Net revenue growth |
15.0% | 4.0% | 7.2% | 4.1% | 2.2% | |||||||||||||||
Comparable brand revenue growth 2 |
17.0% | 6.0% | 3.7% | 3.2% | 0.7% | |||||||||||||||
Gross profit |
$ | 2,636,269 | $ | 2,139,092 | $ | 2,101,013 | $ | 1,931,711 | $ | 1,883,310 | ||||||||||
Gross margin |
38.9% | 36.3% | 37.0% | 36.5% | 37.0% | |||||||||||||||
Operating income |
$ | 910,697 | $ | 465,874 | $ | 435,953 | $ | 453,811 | $ | 472,599 | ||||||||||
Operating margin 3 |
13.4% | 7.9% | 7.7% | 8.6% | 9.3% | |||||||||||||||
Net earnings |
$ | 680,714 | $ | 356,062 | $ | 333,684 | $ | 259,545 | $ | 305,387 | ||||||||||
Basic earnings per share |
$ | 8.81 | $ | 4.56 | $ | 4.10 | $ | 3.03 | $ | 3.45 | ||||||||||
Diluted earnings per share |
$ | 8.61 | $ | 4.49 | $ | 4.05 | $ | 3.02 | $ | 3.41 | ||||||||||
Shares used in calculation of earnings per share: Basic |
77,260 | 78,108 | 81,420 | 85,592 | 88,594 | |||||||||||||||
Diluted |
79,055 | 79,225 | 82,340 | 86,080 | 89,462 | |||||||||||||||
Financial Position |
||||||||||||||||||||
Working capital 4 |
$ | 619,080 | $ | 146,080 | $ | 619,531 | $ | 628,622 | $ | 405,924 | ||||||||||
Total assets 4 |
$ | 4,661,424 | $ | 4,054,042 | $ | 2,812,844 | $ | 2,785,749 | $ | 2,476,879 | ||||||||||
Return on assets 4 |
15.6% | 10.4% | 11.9% | 9.9% | 12.5% | |||||||||||||||
Net cash provided by operating activities |
$ | 1,274,848 | $ | 607,294 | $ | 585,986 | $ | 499,704 | $ | 524,709 | ||||||||||
Capital expenditures |
$ | 169,513 | $ | 186,276 | $ | 190,102 | $ | 189,712 | $ | 197,414 | ||||||||||
Long-term debt and other long-term liabilities 4 |
$ | 1,141,627 | $ | 1,180,968 | $ | 380,944 | $ | 372,226 | $ | 71,215 | ||||||||||
Stockholders’ equity |
$ | 1,651,185 | $ | 1,235,860 | $ | 1,155,714 | $ | 1,203,566 | $ | 1,248,220 | ||||||||||
Stockholders’ equity per share (book value) |
$ | 21.63 | $ | 16.02 | $ | 14.66 | $ | 14.37 | $ | 14.29 | ||||||||||
Return on equity |
47.2% | 29.8% | 28.3% | 21.2% | 25.0% | |||||||||||||||
Annual dividends declared per share |
$ | 2.02 | $ | 1.92 | $ | 1.72 | $ | 1.56 | $ | 1.48 | ||||||||||
Number of stores at year-end |
581 | 614 | 625 | 631 | 629 | |||||||||||||||
Store selling square footage at year-end |
3,975,000 | 4,129,000 | 4,105,000 | 4,019,000 | 3,951,000 | |||||||||||||||
Store leased square footage at year-end |
6,301,000 | 6,558,000 | 6,557,000 | 6,451,000 | 6,359,000 |
1 |
In fiscal 2018, we adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. Amounts reported for fiscal 2017 and fiscal 2016 have not been adjusted, and continue to be reported in accordance with previous revenue recognition guidance. |
2 |
Comparable brand revenue is calculated on a 52-week to 52-week basis, with the exception of fiscal 2018 which is calculated on a 53-week to 53-week basis. See definition of comparable brand revenue within “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” |
3 |
Operating margin is defined as operating income as a percent of net revenues. |
4 |
In fiscal 2019, we adopted ASU 2016-02, Leases, as of the adoption date. Amounts reported for fiscal 2018 and prior years have not been adjusted, and continue to be reported in accordance with previous lease accounting guidance. See Note A to the Consolidated Financial Statements. |
ITEM 7. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
In thousands |
Fiscal 2020 | Fiscal 2019 | ||||||
Pottery Barn |
$ | 2,526,241 | $ | 2,214,397 | ||||
West Elm |
1,682,254 | 1,466,537 | ||||||
Williams Sonoma |
1,242,271 | 1,032,368 | ||||||
Pottery Barn Kids and Teen |
1,042,531 | 908,561 | ||||||
Other 1 |
289,892 | 276,145 | ||||||
Total |
$ | 6,783,189 | $ | 5,898,008 |
1 |
Primarily consists of net revenues from our international franchise operations, Rejuvenation and Mark and Graham. |
Comparable brand revenue growth |
Fiscal 2020 | Fiscal 2019 | ||||||
Pottery Barn |
15.2 | % | 4.1 | % | ||||
West Elm |
15.2 | 14.4 | ||||||
Williams Sonoma |
23.8 | 0.4 | ||||||
Pottery Barn Kids and Teen |
16.6 | 4.5 | ||||||
Total 1 |
17.0 | % | 6.0 | % |
1 |
Total comparable brand revenue growth includes the results of Rejuvenation and Mark and Graham. |
Fiscal 2020 | 1 |
Fiscal 2019 | ||||||
Store count – beginning of year |
614 | 625 | ||||||
Store openings |
10 | 14 | ||||||
Store closings |
(43 | ) | (25 | ) | ||||
Store count – end of year |
581 | 614 | ||||||
Store selling square footage at year-end |
3,975,000 | 4,129,000 | ||||||
Store leased square footage (“LSF”) at year-end |
6,301,000 | 6,558,000 |
1 |
Store count at the end of the year for fiscal 2020 includes stores temporarily closed due to COVID-19. Store count data excludes temporary closures and re-openings of our stores due to COVID-19. |
Fiscal 2020 | Fiscal 2019 | |||||||||||||||
Store Count |
Avg. LSF Per Store |
Store Count |
Avg. LSF Per Store |
|||||||||||||
Williams Sonoma |
198 | 6,800 | 211 | 6,900 | ||||||||||||
Pottery Barn |
195 | 14,600 | 201 | 14,400 | ||||||||||||
West Elm |
121 | 13,100 | 118 | 13,100 | ||||||||||||
Pottery Barn Kids |
57 | 7,800 | 74 | 7,700 | ||||||||||||
Rejuvenation |
10 | 8,500 | 10 | 8,500 | ||||||||||||
Total |
581 | 10,800 | 614 | 10,700 |
In thousands |
Fiscal 2020 | % Net Revenues |
Fiscal 2019 | % Net Revenues |
||||||||||||
Cost of goods sold 1 |
$ | 4,146,920 | 61.1% | $ | 3,758,916 | 63.7% |
1 |
Includes occupancy expenses of $696.3 million and $710.5 million fiscal 2020 and fiscal 2019, respectively. |
In thousands |
Fiscal 2020 | % Net Revenues |
Fiscal 2019 | % Net Revenues |
||||||||||||
Selling, general and administrative expenses |
$ | 1,725,572 | 25.4% | $ | 1,673,218 | 28.4% |
Payments Due by Period 1 |
||||||||||||||||||||
In thousands |
Fiscal 2021 | Fiscal 2022 to Fiscal 2024 |
Fiscal 2025 to Fiscal 2026 |
Thereafter | Total | |||||||||||||||
Current debt 2 |
$ | 300,000 | $ | — | $ | — | $ | — | $ | 300,000 | ||||||||||
Interest |
542 | — | — | — | 542 | |||||||||||||||
Operating leases 3 |
267,760 | 605,121 | 263,192 | 291,356 | 1,427,429 | |||||||||||||||
Purchase obligations 4 |
1,350,121 | 22,456 | — | — | 1,372,577 | |||||||||||||||
Total |
$ | 1,918,423 | $ | 627,577 | $ | 263,192 | $ | 291,356 | $ | 3,100,548 |
1 |
This table excludes $46.9 million of liabilities for unrecognized tax benefits associated with uncertain tax positions as we are not able to reasonably estimate when and if cash payments for these liabilities will occur. This amount, however, has been recorded as a liability in our accompanying Consolidated Balance Sheet as of January 31, 2021. |
2 |
Current debt consists of term loan borrowings under our credit facility, all of which was repaid in full, prior to maturity, in February 2021. See Note C to our Consolidated Financial Statements for discussion of our borrowing arrangements. |
3 |
Projected undiscounted payments include only those amounts that are fixed and determinable as of the reporting date. See Note E to our Consolidated Financial Statements for discussion of our operating leases. |
4 |
Represents estimated commitments at year-end to purchase inventory and other goods and services in the normal course of business to meet operational requirements. |
Amount of Outstanding Commitment Expiration by Period 1 |
||||||||||||||||||||
In thousands |
Fiscal 2021 | Fiscal 2022 to Fiscal 2024 |
Fiscal 2025 to Fiscal 2026 |
Thereafter | Total | |||||||||||||||
Standby letters of credit |
$ | 12,609 | $ | — | $ | — | $ | — | $ | 12,609 | ||||||||||
Letter of credit facilities |
3,843 | — | — | — | 3,843 | |||||||||||||||
Total |
$ | 16,452 | $ | — | $ | — | $ | — | $ | 16,452 |
1 |
See Note C to our Consolidated Financial Statements for discussion of our borrowing arrangements. |
ITEM 7A. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. |
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
In thousands, except per share amounts |
Fiscal 2020 (52 weeks) |
|
Fiscal 2019 (52 weeks) |
|
Fiscal 2018 (53 weeks) |
| ||||||
Net revenues |
$ |
$ |
$ |
|||||||||
Cost of goods sold |
||||||||||||
Gross profit |
||||||||||||
Selling, general and administrative expenses |
||||||||||||
Operating income |
||||||||||||
Interest expense, net |
||||||||||||
Earnings before income taxes |
||||||||||||
Income taxes |
||||||||||||
Net earnings |
$ |
$ |
$ |
|||||||||
Basic earnings per share |
$ |
$ |
$ |
|||||||||
Diluted earnings per share |
$ |
$ |
$ |
|||||||||
Shares used in calculation of earnings per share: |
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Basic |
||||||||||||
Diluted |
In thousands |
Fiscal 2020 (52 weeks) |
|
Fiscal 2019 (52 weeks) |
|
Fiscal 2018 (53 weeks) |
| ||||||
Net earnings |
$ |
$ |
$ |
|||||||||
Other comprehensive income (loss): |
||||||||||||
Foreign currency translation adjustments |
( |
) | ( |
) | ||||||||
Change in fair value of derivative financial instruments, net of tax (tax benefit) of $( |
( |
) | ||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $ and $ |
( |
) | ( |
) | ( |
) | ||||||
Comprehensive income |
$ |
$ |
$ |
In thousands, except per share amounts |
Jan. 31, 2021 | Feb. 2, 2020 | ||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | |
$ | |||||
Accounts receivable, net |
||||||||
Merchandise inventories, net |
||||||||
Prepaid expenses |
||||||||
Other current assets |
||||||||
Total current assets |
||||||||
Property and equipment, net |
||||||||
Operating lease right-of-use |
||||||||
Deferred income taxes, net |
||||||||
Goodwill |
||||||||
Other long-term assets, net |
||||||||
Total assets |
$ | $ | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued expenses |
||||||||
Gift card and other deferred revenue |
||||||||
Income taxes payable |
||||||||
Current debt |
||||||||
Operating lease liabilities |
||||||||
Other current liabilities |
||||||||
Total current liabilities |
||||||||
Deferred lease incentives |
||||||||
Long-term operating lease liabilities |
||||||||
Other long-term liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies – See Note I |
||||||||
Stockholders’ equity |
||||||||
Preferred stock: $ par value; |
— | |||||||
Common stock: $ par value; |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Treasury stock, at cost: |
( |
) | ( |
) | ||||
Total stockholders’ equity |
||||||||
Total liabilities and stockholders’ equity | $ | $ |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total Stockholders’ Equity |
|||||||||||||||||||||||
In thousands |
Shares |
Amount |
||||||||||||||||||||||||||
Balance at January 28, 2018 |
$ |
$ |
$ |
$ |
( |
$ |
( |
) |
$ |
|||||||||||||||||||
Net earnings |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Foreign currency translation adjustments |
— |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax |
— |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||
Conversion/release of stock-based awards 1 |
( |
) |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||
Repurchases of common stock |
( |
) |
( |
) |
( |
) |
( |
) |
— |
— |
( |
) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 |
— |
— |
( |
) |
( |
) |
— |
— |
||||||||||||||||||||
Stock-based compensation expense |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Dividends declared |
— |
— |
— |
( |
) |
— |
— |
( |
) | |||||||||||||||||||
Adoption of accounting pronouncements 2 |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Balance at February 3, 2019 |
( |
) |
( |
) |
||||||||||||||||||||||||
Net earnings |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Foreign currency translation adjustments |
— |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax |
— |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||
Conversion/release of stock-based awards 1 |
( |
) |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||
Repurchases of common stock |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 |
— |
— |
( |
) |
— |
— |
— |
|||||||||||||||||||||
Stock-based compensation expense |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Dividends declared |
— |
— |
— |
( |
) |
— |
— |
( |
) | |||||||||||||||||||
Adoption of accounting pronouncements 3 |
— |
— |
— |
( |
) |
— |
— |
( |
) | |||||||||||||||||||
Balance at February 2, 2020 |
( |
) |
( |
) |
||||||||||||||||||||||||
Net earnings |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Foreign currency translation adjustments |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Change in fair value of derivative financial instruments, net of tax |
— |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax |
— |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||
Conversion/release of stock-based awards 1 |
( |
) |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||
Repurchases of common stock |
( |
) |
( |
) |
( |
) |
( |
) |
— |
— |
( |
) | ||||||||||||||||
Reissuance of treasury stock under stock-based compensation plans 1 |
— |
— |
( |