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SEGMENT REPORTING
 3 Months Ended
May 04, 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 weeks ended May 4, 2025 and April 28, 2024.
For the Thirteen Weeks Ended
(In thousands)May 4, 2025April 28, 2024
Net revenues$1,730,113 $1,660,348 
Less:
Cost of merchandise and shipping766,635 669,025 
Occupancy, excluding depreciation141,829 139,772 
Employment270,430 269,087 
Advertising117,750 123,250 
Other segment items 1
86,877 85,719 
Depreciation and amortization expense55,879 56,383 
Operating income
290,713 317,112 
Interest income, net9,533 16,053 
Earnings before income taxes
$300,246 $333,165 
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 weeks ended May 4, 2025 and April 28, 2024.
 
For the Thirteen Weeks Ended 1
(In thousands)May 4, 2025April 28, 2024
Pottery Barn$695,092 $677,335 
West Elm437,085 430,309 
Williams Sonoma257,493 238,239 
Pottery Barn Kids and Teen229,716 221,802 
Other 2
110,727 92,663 
Total 3
$1,730,113 $1,660,348 
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 approximately $77.8 million and $73.5 million for the thirteen weeks ended May 4, 2025 and April 28, 2024, respectively.
Long-lived assets by geographic location, which excludes deferred income taxes, goodwill, and intangible assets, are as follows:
As of
(In thousands)May 4, 2025February 2, 2025
April 28, 2024
U.S.$2,289,438 $2,268,691 $2,219,749 
International68,021 68,425 74,189 
Total$2,357,459 $2,337,116 $2,293,938