False000071995500007199552023-11-162023-11-16

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K

 CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 16, 2023


Williams-Sonoma, Inc.
(Exact name of registrant as specified in its charter)


Delaware001-1407794-2203880
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)

3250 Van Ness Avenue, San Francisco, California 94109
(Address of principal executive offices)

Registrant’s telephone number, including area code (415) 421-7900

N/A
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class:Trading
Symbol(s):		Name of each exchange
on which registered:
Common Stock, par value $.01 per shareWSM
New York Stock Exchange, Inc.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐



Item 2.02.    Results of Operations and Financial Condition

On November 16, 2023, the Company issued a press release announcing the Company’s financial results for its third quarter ended October 29, 2023. A copy of the Company’s press release is attached as Exhibit 99.1. The attached exhibit is provided under Item 2.02 of Form 8-K and is furnished to, but not filed with, the Securities and Exchange Commission.

Item 9.01.    Financial Statements and Exhibits


    
2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WILLIAMS-SONOMA, INC.
Date: November 16, 2023
By:/s/ Jeffrey E. Howie
Jeffrey E. Howie
Chief Financial Officer
3
Exhibit 99.1
capturea.jpg
Williams-Sonoma, Inc. announces third quarter 2023 results
Q3 comparable brand revenue -14.6%
Record Q3 operating margin of 17.0%; diluted EPS of $3.66
Raises full year operating margin outlook
San Francisco, CA, November 16, 2023 – Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the third quarter ended October 29, 2023 versus the third quarter ended October 30, 2022.
“We are proud to deliver another quarter of strong earnings, significantly exceeding expectations, despite a challenging macroeconomic backdrop for our industry. We beat profitability estimates with a record third quarter operating margin of 17.0% with earnings per share of $3.66. These results were achieved in an environment filled with on-going consumer hesitancy on high-ticket discretionary furniture spend and elevated levels of promotional activity,” said Laura Alber, President and Chief Executive Officer.
Alber concluded, “The strength of our operating model produced strong earnings again this quarter, driven by our full-price selling, supply chain efficiencies, and best-in-class customer service. Our early seasonal reads are strong and we are optimistic about the holiday season.”
THIRD QUARTER 2023 HIGHLIGHTS
•Comparable brand revenue -14.6% with a 2-year comp -6.5% and a 4-year comp +34.8%.
•Gross margin of 44.4% +290bps to LY with selling margin +450bps due to lower shipping and freight costs, and occupancy deleverage of 160bps. Occupancy costs of $200 million, -1.0% to LY.
•SG&A rate of 27.4% +140bps to LY driven by employment and general expense deleverage. SG&A of $507 million, -11.1% to LY.
•Operating income of $315 million with an operating margin of 17.0%.
•Diluted EPS of $3.66 per share.
•Merchandise inventories -17.2% to the third quarter LY to $1.4 billion.
•Cash at quarter-end of $699 million with no borrowings outstanding.
•Operating cash flow of $290 million funding dividends and stock repurchases.
OUTLOOK
•We are updating our fiscal 2023 guidance. We now expect net revenue growth in the range of -10% to -12% with an operating margin between 16% to 16.5%. Our lower sales outlook is offset by our expected increased operating margin, producing higher implied EPS guidance.
•Over the long-term, we continue to expect mid-to-high single-digit annual net revenue growth with operating margin above 15%.
1
Exhibit 99.1
capturea.jpg
CONFERENCE CALL AND WEBCAST INFORMATION
Williams-Sonoma, Inc. will host a live conference call today, November 16, 2023, at 7:00 A.M. (PT). The call will be open to the general public via live webcast and can be accessed at http://ir.williams-sonomainc.com/events. A replay of the webcast will be available at http://ir.williams-sonomainc.com/events.
CONTACT INFORMATION
Jeff Howie EVP, Chief Financial Officer – (415) 402 4324
Jeremy Brooks SVP, Chief Accounting Officer & Head of Investor Relations – (415) 733 2371
2
capturea.jpg
SEC REGULATION G — NON-GAAP INFORMATION
This press release includes non-GAAP financial measures. Exhibit 1 provides reconciliations of these non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We have not provided a reconciliation of any non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential variability and limited visibility of excluded items; these excluded items include exit costs associated with the closure of our West Coast manufacturing facility and the exiting of Aperture, a division of our Outward, Inc. subsidiary, as well as costs related to reduction-in-force initiatives. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, statements in the quotes of our President and Chief Executive Officer, our updated fiscal year 2023 outlook and long-term financial targets, and statements regarding our industry trends and business strategies.
The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; the continuing impact of inflation and measures to control inflation, including raising interest rates, on consumer spending; the continuing impact of the war in Ukraine and the Middle East, and shortages of various raw materials on our global supply chain, retail store operations and customer demand; labor and material shortages; the outcome of our growth initiatives; new interpretations of or changes to current accounting rules; our ability to anticipate consumer preferences and buying trends; dependence on timely introduction and customer acceptance of our merchandise; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays in store openings; competition from companies with concepts or products similar to ours; timely and effective sourcing of merchandise from our foreign and domestic vendors and delivery of merchandise through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; uncertainties in e-marketing, infrastructure and regulation; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; challenges associated with our increasing global presence; dependence on external funding sources for operating capital; disruptions in the financial markets; our ability to control employment, occupancy, supply chain, product, transportation and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and market conditions and events, including war, conflict or acts of terrorism; the impact of current and potential future tariffs and our ability to mitigate impacts; the potential for increased corporate income taxes; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended January 29, 2023 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. We have not filed our Form 10-Q for the quarter ended October 29, 2023. As a result, all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file the Form 10-Q. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.
3
capturea.jpg
ABOUT WILLIAMS-SONOMA, INC.
Williams-Sonoma, Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s products, representing distinct merchandise strategies — Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham and GreenRow — are marketed through e-commerce websites, direct-mail catalogs and retail stores. These brands are also part of The Key Rewards, our loyalty and credit card program that offers members exclusive benefits across the Williams-Sonoma family of brands. We operate in the U.S., Puerto Rico, Canada, Australia and the United Kingdom, offer international shipping to customers worldwide, and have unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India, as well as e-commerce websites in certain locations. We are also proud to be a leader in our industry with our values-based culture and commitment to achieving our sustainability goals. Our company is Good By Design — we’ve deeply ingrained sustainability into our business. From our factories to your home, we’re united in a shared purpose to care for our people and our planet.
For more information on our ESG efforts, please visit: https://sustainability.williams-sonomainc.com/
WSM-IR
4
capturea.jpg
Condensed Consolidated Statements of Earnings (unaudited)
 
For the Thirteen Weeks Ended
For the Thirty-nine Weeks Ended
October 29, 2023October 30, 2022October 29, 2023October 30, 2022
(In thousands, except per share amounts)$% of
Revenues		$% of
Revenues		$% of
Revenues		$% of
Revenues
Net revenues$1,853,650 100 %$2,192,574 100.0 %$5,471,715 100.0 %$6,221,338 100.0 %
Cost of goods sold1,031,290 55.6 1,282,048 58.5 3,216,729 58.8 3,553,455 57.1 
Gross profit822,360 44.4 910,526 41.5 2,254,986 41.2 2,667,883 42.9 
Selling, general and administrative expenses507,283 27.4 570,893 26.0 1,468,884 26.8 1,639,248 26.3 
Operating income315,077 17.0 339,633 15.5 786,102 14.4 1,028,635 16.5 
Interest income, net
7,182 0.4 370 — 16,015 0.3 877 — 
Earnings before income taxes322,259 17.4 340,003 15.5 802,117 14.7 1,029,512 16.5 
Income taxes84,974 4.6 88,280 4.0 206,794 3.8 256,601 4.1 
Net earnings$237,285 12.8 %$251,723 11.5 %$595,323 10.9 %$772,911 12.4 %
Earnings per share (EPS):
Basic$3.70 $3.77 $9.20 $11.27 
Diluted$3.66 $3.72 $9.12 $11.08 
Shares used in calculation of EPS:
Basic64,14266,70464,718 68,578 
Diluted64,77467,61765,298 69,782 

3rd Quarter Net Revenues and Comparable Brand Revenue Growth (Decline)1
Net RevenuesComparable Brand Revenue
Growth (Decline)
(In millions, except percentages)Q3 23Q3 22Q3 23Q3 22
Pottery Barn$778 $935 (16.6)%19.6 %
West Elm466 600 (22.4)4.2 
Williams Sonoma252 262 (1.9)(1.5)
Pottery Barn Kids and Teen277 299 (6.9)(4.8)
Other2
81 97 N/AN/A
Total$1,854 $2,193 (14.6)%8.1 %
1See the Company’s 10-K and 10-Q for the definition of comparable brand revenue, which is calculated on a 13-week basis, and includes business-to-business revenues.
2Primarily consists of net revenues from Rejuvenation, our international franchise operations, Mark and Graham and GreenRow.

5
capturea.jpg
Condensed Consolidated Balance Sheets (unaudited)

As of
(In thousands, except per share amounts)October 29, 2023January 29, 2023October 30, 2022
Assets
Current assets
Cash and cash equivalents$698,807 $367,344 $113,058 
Accounts receivable, net124,238 115,685 125,842 
Merchandise inventories, net1,396,864 1,456,123 1,687,895 
Prepaid expenses100,045 64,961 104,208 
Other current assets27,381 31,967 29,729 
Total current assets2,347,335 2,036,080 2,060,732 
Property and equipment, net1,026,819 1,065,381 1,009,088 
Operating lease right-of-use assets1,235,425 1,286,452 1,277,064 
Deferred income taxes, net76,272 81,389 54,247 
Goodwill77,279 77,307 85,245 
Other long-term assets, net120,639 116,407 107,631 
Total assets$4,883,769 $4,663,016 $4,594,007 
Liabilities and stockholders' equity
Current liabilities
Accounts payable$675,505 $508,321 $720,856 
Accrued expenses203,958 247,594 275,381 
Gift card and other deferred revenue528,403 479,229 488,771 
Income taxes payable53,139 61,204 45,879 
Operating lease liabilities231,236 231,965 220,012 
Other current liabilities96,745 108,138 103,821 
Total current liabilities1,788,986 1,636,451 1,854,720 
Long-term operating lease liabilities1,163,631 1,211,693 1,208,074 
Other long-term liabilities117,918 113,821 118,279 
Total liabilities3,070,535 2,961,965 3,181,073 
Stockholders' equity
Preferred stock: $0.01 par value; 7,500 shares authorized, none issued
— — — 
Common stock: $0.01 par value; 253,125 shares authorized; 64,135, 66,226, and 66,556 shares issued and outstanding at October 29, 2023, January 29, 2023 and October 30, 2022, respectively
642 663 666 
Additional paid-in capital572,406 573,117 553,698 
Retained earnings1,260,216 1,141,819 877,157 
Accumulated other comprehensive loss(18,604)(13,809)(17,848)
Treasury stock, at cost(1,426)(739)(739)
Total stockholders' equity1,813,234 1,701,051 1,412,934 
Total liabilities and stockholders' equity$4,883,769 $4,663,016 $4,594,007 
6
capturea.jpg
 
Retail Store Data
(unaudited)
Beginning of quarterEnd of quarterAs of
July 30, 2023OpeningsClosingsOctober 29, 2023October 30, 2022
Pottery Barn190 2 (1)191 189 
Williams Sonoma164 1 (2)163 175 
West Elm123 — — 123 122 
Pottery Barn Kids46 — — 46 52 
Rejuvenation9 1 — 10 9 
Total532 4 (3)533 547 


7
capturea.jpg
Condensed Consolidated Statements of Cash Flows (unaudited)

For the Thirty-nine Weeks Ended
(In thousands)October 29, 2023October 30, 2022
Cash flows from operating activities:
Net earnings$595,323 $772,911 
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization166,027 157,410 
Loss on disposal/impairment of assets19,143 5,738 
Non-cash lease expense186,764 169,602 
Deferred income taxes(7,993)(10,494)
Tax benefit related to stock-based awards12,455 11,172 
Stock-based compensation expense66,435 67,797 
Other(2,411)(2,170)
Changes in:
Accounts receivable(8,928)5,288 
Merchandise inventories56,770 (443,812)
Prepaid expenses and other assets(35,857)(39,737)
Accounts payable164,958 98,103 
Accrued expenses and other liabilities(48,978)(34,157)
Gift card and other deferred revenue49,878 42,005 
Operating lease liabilities(200,168)(177,855)
Income taxes payable(8,005)(33,276)
Net cash provided by operating activities1,005,413 588,525 
Cash flows from investing activities:
Purchases of property and equipment(134,830)(234,378)
Other402 100 
Net cash used in investing activities(134,428)(234,278)
Cash flows from financing activities:
Repurchases of common stock(313,001)(840,955)
Payment of dividends(174,571)(165,254)
Tax withholdings related to stock-based awards(51,108)(80,431)
Net cash used in financing activities(538,680)(1,086,640)
Effect of exchange rates on cash and cash equivalents(842)(4,887)
Net increase (decrease) in cash and cash equivalents331,463 (737,280)
Cash and cash equivalents at beginning of period367,344 850,338 
Cash and cash equivalents at end of period$698,807 $113,058 
8
capturea.jpg
Exhibit 1
3rd Quarter GAAP to Non-GAAP Reconciliation
(unaudited)
For the Thirteen Weeks Ended
For the Thirty-nine Weeks Ended
October 29, 2023October 30, 2022October 29, 2023October 30, 2022
(In thousands, except per share data)$% of
revenues		$% of
revenues		$% of
revenues		$% of
revenues
Occupancy costs$200,399 10.8 %$202,340 9.2 %$606,270 11.1 %$581,710 9.4 %
Exit Costs1
— — (239)— 
Non-GAAP occupancy costs$200,399 10.8 %$202,340 9.2 %$606,031 11.1 %$581,710 9.4 %
Gross profit$822,360 44.4 %$910,526 41.5 %$2,254,986 41.2 %$2,667,883 42.9 %
Exit Costs1
— — 2,141 — 
Non-GAAP gross profit$822,360 44.4 %$910,526 41.5 %$2,257,127 41.3 %$2,667,883 42.9 %
Selling, general and administrative expenses$507,283 27.4 %$570,893 26.0 %$1,468,884 26.8 %$1,639,248 26.3 %
Exit Costs1
— — (15,790)— 
Reduction-in-force Initiatives2
— — (8,316)— 
Non-GAAP selling, general and administrative expenses$507,283 27.4 %$570,893 26.0 %$1,444,778 26.4 %$1,639,248 26.3 %
Operating income$315,077 17.0 %$339,633 15.5 %$786,102 14.4 %$1,028,635 16.5 %
Exit Costs1
— — 17,931 — 
Reduction-in-force Initiatives2
— — 8,316 — 
Non-GAAP operating income$315,077 17.0 %$339,633 15.5 %$812,349 14.8 %$1,028,635 16.5 %
  
$Tax rate$Tax rate$Tax rate$Tax rate
Income taxes$84,974 26.4 %$88,280 26.0 %$206,794 25.8 %$256,601 24.9 %
Exit Costs1
— — 4,690 — 
Reduction-in-force Initiatives2
— — 2,174 — 
Non-GAAP income taxes$84,974 26.4 %$88,280 26.0 %$213,658 25.8 %$256,601 24.9 %
Diluted EPS$3.66 $3.72 $9.12 $11.08 
Exit Costs1
— — 0.20 — 
Reduction-in-force Initiatives2
— — 0.09 — 
Non-GAAP diluted EPS3
$3.66 $3.72 $9.41 $11.08 
1During Q1 2023, we incurred exit costs of $17.9 million, including $9.3 million associated with the closure of our West Coast manufacturing facility and $8.6 million associated with the exiting of Aperture, a division of our Outward, Inc. subsidiary.
2During Q1 2023, we incurred costs related to reduction-in-force initiatives of $8.3 million primarily in our corporate functions.
3Per share amounts may not sum due to rounding to the nearest cent per diluted share.
SEC Regulation G – Non-GAAP Information
These tables include non-GAAP occupancy costs, gross profit, gross margin, selling, general and administrative expense, operating income, operating margin, income taxes, effective tax rate and diluted EPS. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
9
v3.23.3
Cover
Nov. 16, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 16, 2023
Entity Registrant Name Williams-Sonoma, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-14077
Entity Tax Identification Number 94-2203880
Entity Address, Address Line One 3250 Van Ness Avenue
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94109
City Area Code 415
Local Phone Number 421-7900
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $.01 per share
Trading Symbol WSM
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000719955
Williams Sonoma (NYSE:WSM)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024 Haga Click aquí para más Gráficas Williams Sonoma.
Williams Sonoma (NYSE:WSM)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024 Haga Click aquí para más Gráficas Williams Sonoma.