Williams-Sonoma, Inc. announces second quarter 2024 results

August 22, 2024

Q2 comparable brand revenue -3.3%
Q2 operating margin of 16.2%; diluted EPS growth of 11.5% to $1.74
Revises 2024 outlook with lower revenues offset by higher operating margin

Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the second quarter ended July 28, 2024 versus the second quarter ended July 30, 2023.

“Today we are reporting strong results for the second quarter of 2024, which were driven by our Q2 improved top-line trend, market-share gains, and continued delivery on our commitment to profitability. In Q2, our comp came in at -3.3%, and we exceeded profitability estimates with an operating margin of 16.2% and earnings per share of $1.74, reflecting the 2-for-1 stock split we completed in July,” said Laura Alber, President and Chief Executive Officer.

Alber concluded, “We are pleased with our operating results. Our revised outlook today reflects our prudent view of the top-line, and the confidence we have in our profitability profile. We now expect full year revenues to come in at a range of down 4.0% to down 1.5%, but we are raising our guidance on operating margin to be in the range of 17.4% to 17.8%. The reduction in our revenue outlook is offset by our raised operating margin guidance."

SECOND QUARTER 2024 HIGHLIGHTS

  • Comparable brand revenue -3.3%.
  • Gross margin of 46.2% +550bps to LY driven by (i) higher merchandise margins of +380bps, (ii) supply chain efficiencies of +180bps, partially offset by (iii) occupancy deleverage of -10bps. Occupancy costs of $197 million, -3.0% to LY.
  • SG&A rate of 30.0% +390bps to LY driven by higher performance-based incentive compensation and advertising spend. SG&A of $536 million, +10.4% to LY.
  • Operating income of $290 million with an operating margin of 16.2%. +160bps to LY.
  • Diluted EPS of $1.74. +11.5% to LY.
  • Merchandise inventories -4.1% to the second quarter LY to $1.2 billion.
  • Maintained strong liquidity position of $1.3 billion in cash and operating cash flow of $246 million, enabling the company to deliver returns to stockholders of $203 million through $130 million in stock repurchases and $73 million in dividends.
  • On July 9, 2024, the Company effected a 2-for-1 stock split of its common stock through a stock dividend. All historical share and per share amounts in this release have been retroactively adjusted to reflect the stock split.

FIRST QUARTER 2024 OUT-OF-PERIOD ADJUSTMENT

Subsequent to the filing of our Form 10-K, in April 2024, the Company determined that it over-recognized freight expense in fiscal years 2021, 2022 and 2023 for a cumulative amount of $49 million. The Company evaluated the error, both qualitatively and quantitatively, and determined that no prior interim or annual periods were materially misstated. The Company then evaluated whether the cumulative amount of the over-accrual was material to its projected fiscal 2024 results, and determined the cumulative amount was not material. Therefore, the Condensed Consolidated Financial Statements for the twenty-six weeks ended July 28, 2024 include an out-of-period adjustment of $49 million, recorded in the first quarter of fiscal 2024, to reduce cost of goods sold and accounts payable, which corrected the cumulative error on the balance sheet as of January 28, 2024.

OUTLOOK

  • We are revising our fiscal 2024 guidance to reflect lower net revenue trends and higher operating margin expectations. The net effect of these changes holds earnings materially in line with our prior implied EPS guidance.
  • In fiscal 2024, we now expect annual net revenue growth in the range of -4.0% to -1.5% with comps in the range of -5.5% to -3.0% in fiscal 2024.
  • We are raising our guidance on our operating margin for fiscal 2024. We now expect an operating margin between 18.0% to 18.4%, including the impact of the first quarter out-of-period adjustment of 60bps. Without this adjustment, we expect an operating margin between 17.4% to 17.8% in fiscal 2024.
  • For fiscal 2024, we expect annual interest income to be approximately $45 million and our annual effective tax rate to be approximately 25.5%.
  • Fiscal 2024 is a 53-week year. Our financial statements will be prepared on a 53-week basis in fiscal 2024 and a 52-week basis in fiscal 2023. However, we will report comps on a 53-week versus 53-week comparable basis. All other year-over-year comparisons will be 53-weeks in fiscal 2024 versus 52-weeks in fiscal 2023. We expect the additional week in fiscal 2024 to contribute 150bps to net revenue growth and 10bps to operating margin, both of which are reflected in our guidance.
  • Over the long-term, we continue to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.

CONFERENCE CALL AND WEBCAST INFORMATION

Williams-Sonoma, Inc. will host a live conference call today, August 22, 2024, 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 .

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 non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis as we cannot do so without unreasonable efforts due to the potential variability and limited visibility of excluded items, and for the same reasons, we are unable to address the probable significance of the unavailable information. 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 2024 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 changing interest rates, on consumer spending; the continuing impact of global conflicts, such as the conflicts 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 and grow 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 28, 2024 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 July 28, 2024. 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.

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 sustainability efforts, please visit: https://sustainability.williams-sonomainc.com/

WSM-IR

Condensed Consolidated Statements of Earnings (unaudited)  

 

For the Thirteen Weeks Ended

 

For the Twenty-six Weeks Ended

 

July 28, 2024

 

July 30, 2023

 

July 28, 2024

 

July 30, 2023

(In thousands, except per share amounts)

$

 

% of
Revenues

 

$

 

% of
Revenues

 

$

 

% of
Revenues

 

$

 

% of
Revenues

Net revenues

$

1,788,307

 

100.0

%

 

$

1,862,614

 

100.0

%

 

$

3,448,655

 

100.0

%

 

$

3,618,065

 

100.0

%

Cost of goods sold

 

961,981

 

53.8

 

 

 

1,105,047

 

59.3

 

 

 

1,819,814

 

52.8

 

 

 

2,185,439

 

60.4

 

Gross profit

 

826,326

 

46.2

 

 

 

757,567

 

40.7

 

 

 

1,628,841

 

47.2

 

 

 

1,432,626

 

39.6

 

Selling, general and administrative expenses

 

536,410

 

30.0

 

 

 

486,019

 

26.1

 

 

 

1,015,097

 

29.4

 

 

 

961,601

 

26.6

 

Operating income

 

289,916

 

16.2

 

 

 

271,548

 

14.6

 

 

 

613,744

 

17.8

 

 

 

471,025

 

13.0

 

Interest income, net

 

15,208

 

0.9

 

 

 

3,335

 

0.2

 

 

 

31,261

 

0.9

 

 

 

8,833

 

0.3

 

Earnings before income taxes

 

305,124

 

17.1

 

 

 

274,883

 

14.8

 

 

 

645,005

 

18.7

 

 

 

479,858

 

13.3

 

Income taxes

 

79,379

 

4.4

 

 

 

73,376

 

3.9

 

 

 

153,594

 

4.5

 

 

 

121,820

 

3.4

 

Net earnings

$

225,745

 

12.6

%

 

$

201,507

 

10.8

%

 

$

491,411

 

14.2

%

 

$

358,038

 

9.9

%

Earnings per share (EPS):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

1.76

 

 

 

$

1.57

 

 

 

$

3.83

 

 

 

$

2.75

 

 

Diluted

$

1.74

 

 

 

$

1.56

 

 

 

$

3.78

 

 

 

$

2.73

 

 

Shares used in calculation of EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

128,256

 

 

 

 

128,326

 

 

 

 

128,334

 

 

 

 

130,012

 

 

Diluted

 

129,810

 

 

 

 

129,051

 

 

 

 

130,103

 

 

 

 

131,173

 

 

 

2nd Quarter Net Revenues and Comparable Brand Revenue Growth (Decline) 1

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues

 

Comparable Brand Revenue

Growth (Decline)

 

 

(In millions, except percentages)

Q2 24

 

Q2 23

 

Q2 24

 

Q2 23

 

 

Pottery Barn

$

726

 

$

786

 

(7.1

)%

 

(10.6

)%

 

 

West Elm

 

459

 

 

484

 

(4.8

)

 

(20.8

)

 

 

Williams Sonoma

 

240

 

 

245

 

(0.8

)

 

(0.7

)

 

 

Pottery Barn Kids and Teen

 

259

 

 

256

 

1.5

 

 

(9.0

)

 

 

Other 2

 

104

 

 

92

 

N/A

 

 

N/A

 

 

 

Total

$

1,788

 

$

1,863

 

(3.3

)%

 

(11.9

)%

 

 

1 See 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.  

 

2 Primarily consists of net revenues from Rejuvenation, our international franchise operations, Mark and Graham, and GreenRow.  

 
 

Condensed Consolidated Balance Sheets (unaudited)  

 

As of

(In thousands, except per share amounts)

July 28,
2024

 

January 28,
2024

 

July 30,
2023

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

$

1,265,259

 

 

$

1,262,007

 

 

$

514,435

 

Accounts receivable, net

 

112,492

 

 

 

122,914

 

 

 

117,045

 

Merchandise inventories, net

 

1,247,426

 

 

 

1,246,369

 

 

 

1,300,838

 

Prepaid expenses

 

99,409

 

 

 

59,466

 

 

 

73,521

 

Other current assets

 

19,711

 

 

 

29,041

 

 

 

26,293

 

Total current assets

 

2,744,297

 

 

 

2,719,797

 

 

 

2,032,132

 

Property and equipment, net

 

975,137

 

 

 

1,013,189

 

 

 

1,036,407

 

Operating lease right-of-use assets

 

1,150,180

 

 

 

1,229,650

 

 

 

1,232,925

 

Deferred income taxes, net

 

106,080

 

 

 

110,656

 

 

 

73,610

 

Goodwill

 

77,307

 

 

 

77,306

 

 

 

77,322

 

Other long-term assets, net

 

158,671

 

 

 

122,950

 

 

 

119,415

 

Total assets

$

5,211,672

 

 

$

5,273,548

 

 

$

4,571,811

 

Liabilities and stockholders' equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

$

595,601

 

 

$

607,877

 

 

$

597,104

 

Accrued expenses

 

207,633

 

 

 

264,306

 

 

 

184,996

 

Gift card and other deferred revenue

 

576,458

 

 

 

573,904

 

 

 

435,369

 

Income taxes payable

 

53,373

 

 

 

96,554

 

 

 

127,581

 

Operating lease liabilities

 

233,361

 

 

 

234,517

 

 

 

222,155

 

Other current liabilities

 

92,369

 

 

 

103,157

 

 

 

96,645

 

Total current liabilities

 

1,758,795

 

 

 

1,880,315

 

 

 

1,663,850

 

Long-term operating lease liabilities

 

1,081,108

 

 

 

1,156,104

 

 

 

1,168,221

 

Other long-term liabilities

 

121,539

 

 

 

109,268

 

 

 

118,785

 

Total liabilities

 

2,961,442

 

 

 

3,145,687

 

 

 

2,950,856

 

Stockholders' equity

 

 

 

 

 

Preferred stock: $0.01 par value; 7,500 shares authorized, none issued

 

 

 

 

 

 

 

 

Common stock: $0.01 par value; 253,125 shares authorized; 127,788, 128,301, and 128,289 shares issued and outstanding at July 28, 2024, January 28, 2024 and July 30, 2023, respectively

 

1,278

 

 

 

1,284

 

 

 

1,283

 

Additional paid-in capital

 

538,172

 

 

 

587,960

 

 

 

550,866

 

Retained earnings

 

1,728,063

 

 

 

1,555,595

 

 

 

1,084,772

 

Accumulated other comprehensive loss

 

(16,848

)

 

 

(15,552

)

 

 

(14,540

)

Treasury stock, at cost

 

(435

)

 

 

(1,426

)

 

 

(1,426

)

Total stockholders' equity

 

2,250,230

 

 

 

2,127,861

 

 

 

1,620,955

 

Total liabilities and stockholders' equity

$

5,211,672

 

 

$

5,273,548

 

 

$

4,571,811

 

 

 

 

 

 

 

 

Retail Store Data

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of quarter

 

 

 

 

 

End of quarter

 

As of

 

 

 

April 28, 2024

 

Openings

 

Closings

 

July 28, 2024

 

July 30, 2023

 

 

Pottery Barn

184

 

3

 

(2

)

 

185

 

190

 

 

Williams Sonoma

156

 

2

 

 

 

158

 

164

 

 

West Elm

121

 

1

 

 

 

122

 

123

 

 

Pottery Barn Kids

45

 

 

 

 

45

 

46

 

 

Rejuvenation

11

 

 

 

 

11

 

9

 

 

Total

517

 

6

 

(2

)

 

521

 

532

 

 

 

 

Condensed Consolidated Statements of Cash Flows (unaudited)  

 

For the Twenty-six Weeks Ended

(In thousands)

July 28, 2024

 

July 30, 2023

Cash flows from operating activities:

 

 

 

Net earnings

$

491,411

 

 

$

358,038

 

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

 

113,264

 

 

 

110,843

 

Loss on disposal/impairment of assets

 

2,963

 

 

 

14,185

 

Non-cash lease expense

 

129,608

 

 

 

126,981

 

Deferred income taxes

 

(5,931

)

 

 

(3,841

)

Tax benefit related to stock-based awards

 

10,139

 

 

 

12,334

 

Stock-based compensation expense

 

44,846

 

 

 

44,159

 

Other

 

(1,578

)

 

 

(1,647

)

Changes in:

 

 

 

Accounts receivable

 

10,393

 

 

 

(1,502

)

Merchandise inventories

 

(1,415

)

 

 

154,712

 

Prepaid expenses and other assets

 

(66,647

)

 

 

(6,615

)

Accounts payable

 

(26,617

)

 

 

87,840

 

Accrued expenses and other liabilities

 

(54,924

)

 

 

(67,955

)

Gift card and other deferred revenue

 

2,800

 

 

 

(43,699

)

Operating lease liabilities

 

(131,848

)

 

 

(135,206

)

Income taxes payable

 

(43,181

)

 

 

66,358

 

Net cash provided by operating activities

 

473,283

 

 

 

714,985

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(70,946

)

 

 

(92,880

)

Other

 

(13

)

 

 

211

 

Net cash used in investing activities

 

(70,959

)

 

 

(92,669

)

Cash flows from financing activities:

 

 

 

Repurchases of common stock

 

(173,603

)

 

 

(310,000

)

Payment of dividends

 

(135,768

)

 

 

(116,643

)

Tax withholdings related to stock-based awards

 

(88,851

)

 

 

(49,950

)

Net cash used in financing activities

 

(398,222

)

 

 

(476,593

)

Effect of exchange rates on cash and cash equivalents

 

(850

)

 

 

1,368

 

Net increase in cash and cash equivalents

 

3,252

 

 

 

147,091

 

Cash and cash equivalents at beginning of period

 

1,262,007

 

 

 

367,344

 

Cash and cash equivalents at end of period

$

1,265,259

 

 

$

514,435

 

Exhibit 1

 

 

2nd Quarter GAAP to Non-GAAP Reconciliation

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Thirteen Weeks Ended

 

For the Twenty-six Weeks Ended

 

 

 

July 28, 2024

 

July 30, 2023

 

July 28, 2024

 

July 30, 2023

 

 

(In thousands, except per share data)

$

% of
revenues

 

$

% of
revenues

 

$

% of
revenues

 

$

% of
revenues

 

 

Occupancy costs

$

197,243

11.0

%

 

$

203,259

10.9

%

 

$

393,398

11.4

%

 

$

405,871

 

11.2

%

 

 

Exit Costs 1

 

 

 

 

 

 

 

 

 

 

(239

)

 

 

 

Non-GAAP occupancy costs

$

197,243

11.0

%

 

$

203,259

10.9

%

 

$

393,398

11.4

%

 

$

405,632

 

11.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

826,326

46.2

%

 

$

757,567

40.7

%

 

$

1,628,841

47.2

%

 

$

1,432,626

 

39.6

%

 

 

Exit Costs 1

 

 

 

 

 

 

 

 

 

 

2,141

 

 

 

 

Non-GAAP gross profit

$

826,326

46.2

%

 

$

757,567

40.7

%

 

$

1,628,841

47.2

%

 

$

1,434,767

 

39.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

$

536,410

30.0

%

 

$

486,019

26.1

%

 

$

1,015,097

29.4

%

 

$

961,601

 

26.6

%

 

 

Exit Costs 1

 

 

 

 

 

 

 

 

 

 

(15,790

)

 

 

 

Reduction-in-force Initiatives 2

 

 

 

 

 

 

 

 

 

 

(8,316

)

 

 

 

Non-GAAP selling, general and administrative expenses

$

536,410

30.0

%

 

$

486,019

26.1

%

 

$

1,015,097

29.4

%

 

$

937,495

 

25.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

289,916

16.2

%

 

$

271,548

14.6

%

 

$

613,744

17.8

%

 

$

471,025

 

13.0

%

 

 

Exit Costs 1

 

 

 

 

 

 

 

 

 

 

17,931

 

 

 

 

Reduction-in-force Initiatives 2

 

 

 

 

 

 

 

 

 

 

8,316

 

 

 

 

Non-GAAP operating income

$

289,916

16.2

%

 

$

271,548

14.6

%

 

$

613,744

17.8

%

 

$

497,272

 

13.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

Tax rate

 

$

Tax rate

 

$

Tax rate

 

$

Tax rate

 

 

Income taxes

$

79,379

26.0

%

 

$

73,376

26.7

%

 

$

153,594

23.8

%

 

$

121,820

 

25.4

%

 

 

Exit Costs 1

 

 

 

 

 

 

 

 

 

 

4,690

 

 

 

 

Reduction-in-force Initiatives 2

 

 

 

 

 

 

 

 

 

 

2,174

 

 

 

 

Non-GAAP income taxes

$

79,379

26.0

%

 

$

73,376

26.7

%

 

$

153,594

23.8

%

 

$

128,684

 

25.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

$

1.74

 

 

$

1.56

 

 

$

3.78

 

 

$

2.73

 

 

 

 

Exit Costs 1

 

 

 

 

 

 

 

 

 

 

0.10

 

 

 

 

Reduction-in-force Initiatives 2

 

 

 

 

 

 

 

 

 

 

0.05

 

 

 

 

Non-GAAP diluted EPS 3

$

1.74

 

 

$

1.56

 

 

$

3.78

 

 

$

2.88

 

 

 

 

1 During 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.

 

 

2 During Q1 2023, we incurred costs related to reduction-in-force initiatives of $8.3 million primarily in our corporate functions.

 

 

3 Per 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.

Jeff Howie EVP, Chief Financial Officer – (415) 402 4324
Jeremy Brooks SVP, Chief Accounting Officer & Head of Investor Relations – (415) 733 2371

Source: Williams-Sonoma, Inc.

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