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Segment Reporting
 12 Months Ended
Feb. 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 Note A.
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 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 the 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, are 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 fiscal 2024, fiscal 2023 and fiscal 2022:
For the Fiscal Year Ended
(In thousands)February 2, 2025January 28, 2024January 29, 2023
Net revenues$7,711,541 $7,750,652 $8,674,417 
Less:
Cost of merchandise and shipping3,336,102 3,632,761 4,211,259 
Occupancy, excluding depreciation567,602 584,469 574,705 
Employment1,227,305 1,167,024 1,217,189 
Advertising567,723 502,245 581,063 
Other segment items 1
354,914 389,938 381,033 
Depreciation and amortization expense227,712 230,022 210,747 
Operating income
$1,430,184 $1,244,193 $1,498,422 
Interest income, net55,548 29,162 2,260 
Earnings before income taxes
$1,485,732 $1,273,355 $1,500,682 
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 fiscal 2024, fiscal 2023 and fiscal 2022:
For the Fiscal Year Ended 1
(In thousands)February 2, 2025January 28, 2024January 29, 2023
Pottery Barn
$3,039,939 $3,206,167 $3,555,521 
West Elm
1,840,582 1,854,811 2,278,131 
Williams Sonoma
1,302,821 1,260,045 1,286,651 
Pottery Barn Kids and Teen
1,107,057 1,060,470 1,132,937 
Other 2
421,142 369,159 421,177 
Total 3
$7,711,541 $7,750,652 $8,674,417 
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 and the United Kingdom and our franchise businesses) of approximately $336.3 million, $328.9 million and $407.9 million for fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
Long-lived assets by geographic location, which excludes deferred income taxes, goodwill and intangible assets, are as follows:
(In thousands)
February 2, 2025
January 28, 2024
U.S.
$2,268,691 $2,273,905 
International
68,425 79,720 
Total
$2,337,116 $2,353,625