This multi-channel specialty retailer of premium quality home products has also broadly outperformed its peer companies like RH (RH) , down 16.9% YTD), Haverty Furniture Companies, Inc. (HVT) , down 32.4%) and Ethan Allen Interiors Inc. (ETD) , down 15.3%). Williams-Sonoma is reaping the rewards of its strategic focus on diversifying its product portfolio and establishing a sustainable operating model with the competitive advantage of a digital-first but not digital-only channel strategy. With a robust e-co ...

Revenue Performance - Net revenues in Q1 2024 decreased by $95.1 million or 5.4%, with a company comparable brand revenue decline of 4.9%[70] - Pottery Barn saw a 10.8% comparable brand revenue decline in Q1 2024, with a 11.2% decline on a two-year basis and 3.4% growth on a three-year basis[71] - West Elm experienced a 4.1% brand comp decline in Q1 2024, with a 19.9% decline on a two-year basis and 7.1% decline on a three-year basis[72] - Williams Sonoma brand saw 0.9% brand comp growth in Q1 2024, with a 3.5% decline on a two-year basis and 5.7% decline on a three-year basis[73] - Comparable brand revenue growth for Pottery Barn declined by 10.8% in Q1 fiscal 2024, while West Elm declined by 4.1%, Williams Sonoma grew by 0.9%, and Pottery Barn Kids and Teen grew by 2.8%[81] Profitability and Margins - Gross profit increased by $127.5 million or 18.9% in Q1 2024 compared to Q1 2023, with gross margin rising to 48.3% from 38.5%[86] - Gross profit decreased by $153.5 million (18.5%) in Q1 fiscal 2023 compared to Q1 fiscal 2022, with gross margin declining to 38.5% from 43.8%[87] Earnings and Tax - Diluted earnings per share for Q1 2024 was $4.07, including a $0.59 benefit from an out-of-period adjustment[75] - The effective tax rate for Q1 fiscal 2024 was 21.8%, down from 23.6% in Q1 fiscal 2023, due to higher excess tax benefits from stock-based compensation[90] - The company's subsidiaries are not subject to Pillar Two minimum tax in Q1 fiscal 2024 under the OECD Safe Harbor rules[92] Cash Flow and Financial Position - The company held $1.3 billion in cash and cash equivalents as of April 28, 2024, with $226.8 million in operating cash flow generated in Q1 2024[76] - Net cash provided by operating activities for Q1 fiscal 2024 was $226.8 million, a decrease from $342.5 million in Q1 fiscal 2023, primarily due to a decrease in accounts payable[104] - Net cash used in investing activities for Q1 fiscal 2024 was $39.5 million, compared to $49.9 million in Q1 fiscal 2023, primarily for technology, supply chain enhancements, and store construction[105] - Net cash used in financing activities for Q1 fiscal 2024 was $193.7 million, a decrease from $362.4 million in Q1 fiscal 2023, primarily due to lower common stock repurchases[106] Credit and Borrowings - The company has a $500 million unsecured revolving line of credit, with no borrowings during Q1 2024[99] - The company's Revolver has a variable interest rate, but no borrowings were made under it during Q1 fiscal 2024[110] Operational Adjustments and Expenses - The company identified a cumulative over-recognition of freight expense of $49.0 million for fiscal years 2021-2023, which was adjusted in Q1 2024[74] - SG&A increased by $3.1 million or 0.7% in Q1 2024 compared to Q1 2023, with SG&A as a percentage of net revenues rising to 28.8% from 27.1%[89] Seasonal Variations - The company's business is subject to seasonal variations, with higher revenues and net earnings typically realized from October through January[107] Foreign Currency Exposure - The company's operations in Canada, Australia, the UK, Asia, and Europe expose it to foreign currency exchange rate fluctuations, but most purchases and sales are denominated in U.S. dollars, limiting this risk[113] - Some foreign operations have a functional currency other than the U.S. dollar, but the impact of exchange rate fluctuations was not material in Q1 fiscal 2024 or Q1 fiscal 2023[113] - A hypothetical 10% change in foreign currency exchange rates would not have a material impact on the company's historical or current financial statements[113] - The company may hedge a portion of its foreign currency exposure using foreign currency forward contracts to mitigate risk as it expands globally[113] Internal Controls - The company's disclosure controls and procedures were evaluated as effective as of April 28, 2024[115]

Williams-Sonoma, Inc. (NYSE:WSM) Q1 2024 Earnings Conference Call May 22, 2024 10:00 AM ET Company Participants Jeremy Brooks - Chief Accounting Officer and Head of IR Laura Alber - President and CEO Jeff Howie - EVP and CFO Conference Call Participants Kate McShane - Goldman Sachs Christopher Horvers - JPMorgan Cristina Fernandez - Telsey Advisory Group Michael Lasser - UBS Steven Zaccone - Citi Seth Basham - Wedbush Max Rakhlenko - TD Cowen Brian Nagel - Oppenheimer Oliver Wintermantel - Evercore ISI Sime ...

Exhibit 99.1 FIRST QUARTER 2024 HIGHLIGHTS 1 • Comparable brand revenue -4.9% with a 2-year comp -10.9% and a 3-year comp -1.4%. • Gross margin of 48.3%, including a benefit of +290bps from an out-of-period adjustment. Without this adjustment, gross margin of 45.4%, which increased +690bps compared to LY GAAP basis, driven by (i) higher merchandise margins of +480bps, (ii) supply chain efficiencies of +240bps, partially offset by (iii) occupancy deleverage of -30bps. Occupancy costs of $196 million, -3.2% t ...

PART I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Williams-Sonoma, Inc. is an omni-channel retailer of home products across nine brands, focusing on growth, service, and earnings - Williams-Sonoma, Inc. is an omni-channel specialty retailer of high-quality products for the home, incorporated in **1973**[16](index=16&type=chunk) - The company's strategic priorities are returning to **growth**, elevating world-class **customer service**, and driving **earnings**, supported by strategies in core businesses, B2B, emerging brands, and global expansion[18](index=18&type=chunk) - The portfolio includes nine brands: Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow, marketed through e-commerce, direct-mail catalogs, and retail stores[19](index=19&type=chunk) Store Locations and Franchises | Metric | Value | | :--- | :--- | | Total Stores (as of Jan 28, 2024) | 518 | | Stores in U.S., D.C., Puerto Rico | 480 | | Stores in Canada | 19 | | Stores in Australia | 17 | | Stores in United Kingdom | 2 | | Franchised Locations | 138 | - Approximately **81%** of merchandise purchases in fiscal 2023 were sourced from foreign suppliers, predominantly in Asia and Europe, with **25% from China**[30](index=30&type=chunk) - The business is subject to substantial seasonal variations, with a significant portion of net revenues and earnings realized from October through January[32](index=32&type=chunk) Employee Statistics (as of Jan 28, 2024) | Metric | Value | | :--- | :--- | | Total Employees | ~19,300 | | Full-time Employees | ~10,700 | | Female Workforce | ~68.1% | | Ethnic Minority Workforce | ~41.1% | | Female VPs and above | ~56.6% | - The company owns approximately **200 unique trademarks/service marks** and **420 patents**, which are of material importance to its business[45](index=45&type=chunk) [Item 1A. Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from consumer spending, supply chain, cybersecurity, and evolving regulations - Consumer spending on home furnishings and kitchen products is sensitive to economic conditions, inflation, interest rates, and housing market trends, which could reduce demand for products[59](index=59&type=chunk) - The company faces risks from global supply chain disruptions, including geopolitical instability, labor disputes, and adverse weather, which can increase costs and delay merchandise delivery[64](index=64&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - Cybersecurity risks, including attacks, data breaches, and credit card fraud, could lead to unexpected expenses, revenue loss, litigation, and damage to reputation[100](index=100&type=chunk) - Dependence on foreign suppliers (**81% of purchases in FY23, 25% from China**) exposes the company to foreign currency fluctuations, rising labor costs, and geopolitical risks[109](index=109&type=chunk) - Evolving governmental regulations on data privacy (e.g., GDPR, CCPA, CPRA) and cybersecurity disclosure requirements (SEC's Rules) impose complex compliance burdens and potential liabilities[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - Failure to attract and retain key personnel, especially with digital/e-commerce and technology skills, could harm business and operating results[95](index=95&type=chunk) [Item 1B. Unresolved Staff Comments](index=30&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported that there are no unresolved staff comments from the SEC - There are no unresolved staff comments[153](index=153&type=chunk) [Item 1C. Cybersecurity](index=30&type=section&id=Item%201C.%20Cybersecurity) The company manages cybersecurity risks via a comprehensive strategy, overseen by the Audit and Finance Committee, with no material impact - Cybersecurity risks are assessed, identified, and managed through an enterprise risk management process, including operational risks, intellectual property theft, fraud, and reputational risks[154](index=154&type=chunk) - The cybersecurity risk management approach includes system vulnerability scanning, employee training, penetration testing, and third-party risk management[155](index=155&type=chunk) - The Audit and Finance Committee is responsible for oversight of cybersecurity threats, receiving quarterly overviews from the Chief Information Security Officer and Chief Technology and Digital Officer[160](index=160&type=chunk) - To date, risks from cybersecurity threats have not materially affected the company's business strategy, results of operations, or financial condition[158](index=158&type=chunk)[159](index=159&type=chunk) [Item 2. Properties](index=32&type=section&id=Item%202.%20Properties) The company leases **5.89 million sq ft** across **518 stores** and owns **471,000 sq ft** for corporate and data center operations - The company leases store locations, distribution and manufacturing facilities, corporate facilities, and customer care centers for its U.S. and foreign operations[164](index=164&type=chunk) Store Count and Leased Space | Metric | As of Jan 28, 2024 | As of Jan 29, 2023 | | :--- | :--- | :--- | | Store count | 518 | 530 | | Gross leased store space | ~5,890,000 sq ft | ~5,962,000 sq ft | - The company owned **471,000 square feet** of space as of January 28, 2024, primarily for its corporate headquarters and certain data center operations in California[167](index=167&type=chunk) [Item 3. Legal Proceedings](index=33&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine, non-material legal proceedings, establishing reserves for probable liabilities, with no expected material adverse effect - The company is involved in lawsuits, claims, and proceedings incident to the ordinary course of business, which are increasing in number but are not currently material[168](index=168&type=chunk) - Loss contingency reserves are established when a liability is probable and the amount can be reasonably estimated[168](index=168&type=chunk) - Management believes the ultimate resolution of current legal matters will not have a material adverse effect on the Consolidated Financial Statements[168](index=168&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to Williams-Sonoma, Inc[169](index=169&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) WSM common stock trades on NYSE, with **273 stockholders**, a **26% dividend increase**, and a new **$1.0 billion** stock repurchase program - Williams-Sonoma, Inc. common stock is traded on the New York Stock Exchange (NYSE) under the symbol WSM[172](index=172&type=chunk) Stockholder and Share Information (as of March 17, 2024) | Metric | Value | | :--- | :--- | | Stockholders of record | 273 | | Common Stock Outstanding | 64,112,265 shares | | Closing Sale Price | $283.77 | Total Cash Dividends Declared | Fiscal Year | Total Cash Dividends Declared | | :--- | :--- | | 2023 | $236.8 million ($3.60 per common share) | | 2022 | $216.3 million ($3.12 per common share) | | 2021 | $199.4 million ($2.60 per common share) | - In March 2024, the Board of Directors authorized a **26% increase** in the quarterly cash dividend, from **$0.90 to $1.13 per common share**[355](index=355&type=chunk) Stock Repurchases (Cost) | Fiscal Year | Stock Repurchases (Cost) | | :--- | :--- | | 2023 | $313.0 million | | 2022 | $880.0 million | | 2021 | $899.4 million | - A new **$1.0 billion** stock repurchase program was authorized in March 2024, replacing the existing program[175](index=175&type=chunk)[352](index=352&type=chunk) [Item 6. Reserved](index=35&type=section&id=Item%206.%20Reserved) This item is intentionally left blank, indicating no information is required or provided for this section [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes financial performance, liquidity, and capital resources, noting a **10.6% decline in net revenues** in fiscal 2023, strong liquidity, and 2024 growth priorities - Net revenues in fiscal 2023 decreased by **$923.8 million**, or **10.6%**, to **$7,750.652 million**, with a company comparable brand revenue decline of **9.9%**[185](index=185&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk) - The decline in fiscal 2023 revenues was primarily driven by continuing customer hesitancy towards furniture purchases and a strategy to reduce promotional activity[185](index=185&type=chunk)[206](index=206&type=chunk) Comparable Brand Revenue Growth (Decline) | Brand | FY23 Comp Growth (Decline) | FY22 Comp Growth | | :--- | :--- | :--- | | Pottery Barn | (9.7%) | 14.9% | | West Elm | (18.8%) | 2.5% | | Williams Sonoma | (0.7%) | (1.7%) | | Pottery Barn Kids and Teen | (5.5%) | 0.4% | | Total Company | (9.9%) | 6.5% | - Diluted earnings per share in fiscal 2023 was **$14.55**, down from **$16.32** in fiscal 2022, including impacts from exit costs and reduction-in-force initiatives[191](index=191&type=chunk)[259](index=259&type=chunk) - The company ended fiscal 2023 with a strong liquidity position, including a cash balance of **$1.3 billion** and **$1.7 billion** in positive operating cash flow, with no outstanding borrowings under its revolving line of credit[190](index=190&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk) - For 2024, key priorities include returning to **growth** (driven by core businesses, B2B, emerging brands, global expansion), elevating **customer service** (supply chain improvements), and driving **earnings** (pricing power, e-commerce mix, retail optimization, cost control)[196](index=196&type=chunk)[197](index=197&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) Financial Performance (in thousands) | Financial Metric | Fiscal 2023 | Fiscal 2022 | | :--- | :--- | :--- | | Net Revenues | $7,750,652 | $8,674,417 | | Gross Profit | $3,303,601 | $3,677,733 | | Gross Margin | 42.6% | 42.4% | | SG&A Expenses | $2,059,408 | $2,179,311 | | SG&A as % of Net Revenues | 26.6% | 25.1% | | Operating Income | $1,244,193 | $1,498,422 | | Net Earnings | $949,762 | $1,127,904 | | Effective Income Tax Rate | 25.4% | 24.8% | - Gross margin expanded by **20 basis points to 42.6%** in fiscal 2023, driven by improved selling margin from lower input costs (decreased ocean freight) and reduced promotional activity, partially offset by higher occupancy costs[215](index=215&type=chunk) - SG&A as a percentage of net revenues increased to **26.6%** in fiscal 2023, primarily due to the deleverage of employment costs from higher performance-based incentive compensation, partially offset by managed variable employment costs and advertising leverage[218](index=218&type=chunk) Cash Flow Activities (in thousands) | Cash Flow Activity | Fiscal 2023 | Fiscal 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,680,273 | $1,052,822 | | Net cash used in investing activities | $(188,257) | $(353,955) | | Net cash used in financing activities | $(598,307) | $(1,178,673) | - The company recognized impairment charges of **$14.5 million** in fiscal 2023, primarily related to underperforming stores and the exit of Aperture, a division of its Outward subsidiary[248](index=248&type=chunk)[283](index=283&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details market risks like interest rate, foreign currency, and inflation, with limited material impact in fiscal 2023 - The company is exposed to market risks including significant deterioration of U.S. and foreign markets, changes in U.S. interest rates, foreign currency exchange rate fluctuations, inflation, and economic uncertainty[252](index=252&type=chunk) - The Revolver has a variable interest rate, but there were no borrowings under it in fiscal 2023, limiting interest rate risk exposure from debt[253](index=253&type=chunk) - Foreign currency exchange rate fluctuations were not material in fiscal 2023, as most purchases and sales are denominated in U.S. dollars, but global expansion may increase this risk[255](index=255&type=chunk)[256](index=256&type=chunk) - Varying levels of inflation were experienced, but the company's operating model and pricing power helped mitigate increased costs in fiscal 2023; future impacts are uncertain[257](index=257&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements, notes, and the independent auditor's opinion on impairment indicators for long-lived assets Consolidated Statements of Earnings (in thousands, except per share amounts) | Metric | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | | :--- | :--- | :--- | :--- | | Net revenues | $7,750,652 | $8,674,417 | $8,245,936 | | Gross profit | $3,303,601 | $3,677,733 | $3,631,963 | | Operating income | $1,244,193 | $1,498,422 | $1,453,116 | | Net earnings | $949,762 | $1,127,904 | $1,126,337 | | Diluted earnings per share | $14.55 | $16.32 | $14.75 | Consolidated Balance Sheets (in thousands) | Asset/Liability | As of Jan 28, 2024 | As of Jan 29, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,262,007 | $367,344 | | Merchandise inventories, net | $1,246,369 | $1,456,123 | | Total current assets | $2,719,797 | $2,036,080 | | Total assets | $5,273,548 | $4,663,016 | | Total current liabilities | $1,880,315 | $1,636,451 | | Total liabilities | $3,145,687 | $2,961,965 | | Total stockholders' equity | $2,127,861 | $1,701,051 | Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $1,680,273 | $1,052,822 | $1,371,147 | | Net cash used in investing activities | $(188,257) | $(353,955) | $(226,247) | | Net cash used in financing activities | $(598,307) | $(1,178,673) | $(1,491,985) | - Deloitte & Touche LLP provided an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting as of January 28, 2024[379](index=379&type=chunk) - A critical audit matter identified was the identification of indicators of impairment for store-level long-lived assets, due to significant estimates and assumptions related to revenue growth rates and gross margin[386](index=386&type=chunk)[387](index=387&type=chunk) [Consolidated Statements of Earnings](index=47&type=section&id=Consolidated%20Statements%20of%20Earnings) Presents the company's revenues, expenses, and net earnings over specified fiscal periods [Consolidated Statements of Comprehensive Income](index=47&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Details the company's comprehensive income, including net earnings and other comprehensive income items [Consolidated Balance Sheets](index=48&type=section&id=Consolidated%20Balance%20Sheets) Provides a snapshot of the company's assets, liabilities, and equity at specific fiscal year-ends [Consolidated Statements of Stockholders' Equity](index=49&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Outlines changes in the company's equity accounts over specified fiscal periods [Consolidated Statements of Cash Flows](index=50&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Reports the cash generated and used by operating, investing, and financing activities [Notes to Consolidated Financial Statements](index=51&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, financial instruments, and other disclosures supporting the financial statements [Note A: Summary of Significant Accounting Policies](index=51&type=section&id=Note%20A%3A%20Summary%20of%20Significant%20Accounting%20Policies) Outlines key accounting principles and methods used in consolidated financial statements [Note B: Property and Equipment](index=58&type=section&id=Note%20B%3A%20Property%20and%20Equipment) Details the company's property and equipment, including depreciation and asset values [Note C: Borrowing Arrangements](index=58&type=section&id=Note%20C%3A%20Borrowing%20Arrangements) Describes the company's debt and credit facilities, including terms and conditions [Note D: Income Taxes](index=59&type=section&id=Note%20D%3A%20Income%20Taxes) Explains the company's income tax provisions, deferred taxes, and effective tax rates [Note E: Leases](index=62&type=section&id=Note%20E%3A%20Leases) Details the company's lease arrangements, including right-of-use assets and lease liabilities [Note F: Earnings Per Share](index=63&type=section&id=Note%20F%3A%20Earnings%20Per%20Share) Presents the calculation of basic and diluted earnings per share [Note G: Stock-Based Compensation](index=63&type=section&id=Note%20G%3A%20Stock-Based%20Compensation) Describes the company's stock-based compensation plans and related expenses [Note H: Williams-Sonoma, Inc. 401(k) Plan and Other Associate Benefits](index=64&type=section&id=Note%20H%3A%20Williams-Sonoma%2C%20Inc.%20401%28k%29%20Plan%20and%20Other%20Associate%20Benefits) Details the company's employee benefit plans, including the 401(k) plan [Note I: Commitments and Contingencies](index=65&type=section&id=Note%20I%3A%20Commitments%20and%20Contingencies) Outlines the company's contractual commitments and potential contingent liabilities [Note J: Stock Repurchase Program and Dividends](index=65&type=section&id=Note%20J%3A%20Stock%20Repurchase%20Program%20and%20Dividends) Details the company's stock repurchase activities and dividend declarations [Note K: Segment Reporting](index=66&type=section&id=Note%20K%3A%20Segment%20Reporting) Provides financial information by business segment, detailing revenue and operating income [Note L: Derivative Financial Instruments](index=66&type=section&id=Note%20L%3A%20Derivative%20Financial%20Instruments) Describes the company's use of derivative financial instruments for risk management [Note M: Fair Value Measurements](index=68&type=section&id=Note%20M%3A%20Fair%20Value%20Measurements) Explains methodologies and inputs for fair value measurements of financial instruments [Note N: Accumulated Other Comprehensive Income (Loss)](index=69&type=section&id=Note%20N%3A%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) Details the components of accumulated other comprehensive income or loss [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](index=70&type=section&id=REPORT%20OF%20INDEPENDENT%20REGISTERED%20PUBLIC%20ACCOUNTING%20FIRM) Presents the auditor's opinion on consolidated financial statements and internal control over financial reporting [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=72&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported that there have been no changes in or disagreements with accountants on accounting and financial disclosure matters - There have been no changes in or disagreements with accountants on accounting and financial disclosure[390](index=390&type=chunk) [Item 9A. Controls and Procedures](index=72&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of January 28, 2024, with no material Q4 changes - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of January 28, 2024[391](index=391&type=chunk) - Management assessed and concluded that the internal control over financial reporting was effective as of January 28, 2024, based on COSO criteria[393](index=393&type=chunk) - No significant changes in internal control over financial reporting occurred during the fourth quarter of fiscal 2023[395](index=395&type=chunk) [Item 9B. Other Information](index=72&type=section&id=Item%209B.%20Other%20Information) The company reported that none of its directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fourth quarter of fiscal 2023 - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fourth quarter of fiscal 2023[396](index=396&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=72&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This item is not applicable to the company - Disclosure regarding foreign jurisdictions that prevent inspections is not applicable to Williams-Sonoma, Inc[397](index=397&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=73&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement[399](index=399&type=chunk) [Item 11. Executive Compensation](index=73&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information, including director compensation, is incorporated by reference from the Proxy Statement, excluding 'Pay Versus Performance' - Executive compensation information is incorporated by reference from the Proxy Statement, excluding 'Pay Versus Performance'[400](index=400&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=73&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information for beneficial owners and management is incorporated by reference from the Proxy Statement - Security ownership information for beneficial owners and management is incorporated by reference from the Proxy Statement[401](index=401&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=73&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the Proxy Statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the Proxy Statement[402](index=402&type=chunk) [Item 14. Principal Accountant Fees and Services](index=73&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services from Deloitte & Touche LLP is incorporated by reference from the Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the Proxy Statement[403](index=403&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=74&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements, schedules, and various exhibits filed or incorporated by reference in the Form 10-K - The section lists the Consolidated Financial Statements of Williams-Sonoma, Inc. and subsidiaries, filed as part of this Annual Report on Form 10-K[406](index=406&type=chunk) - Financial Statement Schedules have been omitted as they are not required, not applicable, or the information is included in the financial statements or notes[406](index=406&type=chunk) - A comprehensive Exhibit Index is provided, detailing various corporate documents, financing agreements, stock plans, and certifications, many of which are incorporated by reference[407](index=407&type=chunk)[410](index=410&type=chunk) [Item 16. Form 10-K Summary](index=74&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicated that no Form 10-K Summary is provided for this report - No Form 10-K Summary is included in this report[419](index=419&type=chunk)

Start Time: 10:00 January 1, 0000 11:01 AM ET Williams-Sonoma, Inc. (NYSE:WSM) Q4 2023 Earnings Conference Call March 13, 2024, 10:00 AM ET Company Participants Laura Alber - President and CEO Jeff Howie - EVP and CFO Jeremy Brooks - Chief Accounting Officer and Head, IR Conference Call Participants Steven Zaccone - Citi Seth Basham - Wedbush Securities Jonathan Matuszewski - Jefferies Max Rakhlenko - TD Cowen Peter Benedict - Baird Christopher Horvers - JPMorgan Kate McShane - Goldman Sachs Operator Welcom ...

Revenue Performance - Q4 comparable brand revenue decreased by 6.8%, with a 2-year comp of -7.4% and a 4-year comp of +29.1%[4] - Net revenues for FY 2024 decreased to $7.75 billion, a 9.9% decline compared to FY 2023's $8.67 billion[18] - Pottery Barn's net revenues declined by 9.7% to $3.21 billion in FY 2024, while West Elm saw a sharper decline of 18.8% to $1.86 billion[18] - Fiscal 2024 net revenue growth is expected to be in the range of -3% to +3%, with comps expected to be between -4.5% to +1.5%[8] Profitability and Margins - Q4 operating margin was 20.1%, with diluted EPS of $5.44[4] - Full-year operating margin for fiscal 2023 was 16.4%, with diluted EPS of $14.85, beating the comp guidance of -10% to -12%[2] - Gross margin for Q4 was 46.0%, an increase of 480 basis points year-over-year, driven by higher merchandise margins and supply chain efficiencies[4] - Gross profit for FY 2024 was $3.30 billion, representing 42.6% of net revenues, slightly up from 42.4% in FY 2023[18] - Gross profit for the thirteen weeks ended January 28, 2024, was $1,048,615, representing 46.0% of revenues, compared to $1,009,850 (41.2% of revenues) for the same period in 2023[25] - Operating income for the thirteen weeks ended January 28, 2024, was $458,091, representing 20.1% of revenues, compared to $469,787 (19.2% of revenues) for the same period in 2023[25] - Adjusted Operating Income for the fiscal year ended January 28, 2024, was $1,567,219[28] - NOPAT (Net Operating Profit After Tax) for the fiscal year ended January 28, 2024, was $1,169,145[28] - Return on invested capital (ROIC) for the fiscal year ended January 28, 2024, was 45.0%[30] Expenses and Costs - Q4 SG&A expenses were $591 million, an increase of 9.3% year-over-year on a GAAP basis[4] - Selling, general and administrative expenses for the thirteen weeks ended January 28, 2024, were $590,524, representing 25.9% of revenues, compared to $540,063 (22.0% of revenues) for the same period in 2023[25] - Occupancy costs for the thirteen weeks ended January 28, 2024, were $208,020, representing 9.1% of revenues, compared to $203,715 (8.3% of revenues) for the same period in 2023[25] Liquidity and Cash Flow - The company maintained a strong liquidity position with $1.3 billion in cash and $1.7 billion in operating cash flow[8] - Cash and cash equivalents increased significantly to $1.26 billion as of January 28, 2024, compared to $367.34 million in the previous year[21] - Net cash provided by operating activities increased to $1.68 billion in FY 2024, up from $1.05 billion in FY 2023[24] - Total assets increased to $5.27 billion as of January 28, 2024, up from $4.66 billion in the previous year[21] - Total assets as of January 28, 2024, were $5,273,548, compared to $4,663,016 as of January 29, 2023[30] Dividends and Share Repurchases - The company increased its quarterly dividend by 26% to $1.13 per share and authorized a new $1 billion stock repurchase program[1][8] - Repurchases of common stock decreased to $313.00 million in FY 2024, compared to $880.04 million in FY 2023[24] Inventory Management - Merchandise inventories decreased by 14.4% year-over-year to $1.2 billion[8] - Merchandise inventories decreased by $209.77 million to $1.25 billion as of January 28, 2024[21] Store Operations - Total retail stores decreased from 530 at the end of FY 2023 to 518 at the end of FY 2024, with Pottery Barn closing 8 stores and Williams Sonoma closing 7 stores[22] Earnings and EPS - Earnings per share (EPS) decreased to $14.55 (diluted) in FY 2024 from $16.32 in FY 2023[18] - Diluted EPS for the thirteen weeks ended January 28, 2024, was $5.44, compared to $5.28 for the same period in 2023[25] - Net earnings for the fiscal year ended January 28, 2024, were $949,762[28] Fiscal Year Impact - The additional week in fiscal 2024 is expected to contribute 150 basis points to revenue growth and 10 basis points to operating margin[8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 29, 2023. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-14077 _________________________ (Zip Code) Registrant's telephone number ...

Williams-Sonoma, Inc. (NYSE:WSM) Q3 2023 Results Conference Call November 16, 2023 10:00 AM ET Company Participants Jeremy Brooks - Chief Accounting Officer and Head, IR Laura Alber - President and CEO Jeff Howie - CFO Yasir Anwar - Chief Digital and Technology Officer Felix Carbullido - President, Williams Sonoma Conference Call Participants Chuck Grom - Gordon Haskett Cristina Fernández - Telsey Advisory Group Peter Benedict - Baird Max Rakhlenko - TD Cowen Anthony Chukumba - Loop Capital Markets Jason Ha ...

Financial Performance - Net revenues for the second quarter of fiscal 2023 decreased by $274.9 million, or 12.9%, with comparable brand revenue decline of 11.9%[84] - For the first half of fiscal 2023, net revenues decreased by $410.7 million, or 10.2%, with a comparable brand revenue decline of 9.1%[92] - Diluted earnings per share for the second quarter of fiscal 2023 was $3.12, down from $3.87 in the same quarter of fiscal 2022[87] Brand Performance - Pottery Barn, the largest brand, experienced a 10.6% decline in comparable brand revenue for the second quarter, but showed 10.9% growth on a two-year basis[85] - West Elm saw a significant 20.8% decline in comparable brand revenue in the second quarter, reflecting the brand's high exposure to the furniture category[86] Cash Flow and Liquidity - As of July 30, 2023, the company had $514.4 million in cash and cash equivalents and generated operating cash flow of $715.0 million in the first half of fiscal 2023[88] - Net cash provided by operating activities for the first half of FY2023 was $715.0 million, compared to $383.6 million for the first half of FY2022[116] - The company has a $500 million unsecured revolving line of credit, which can be increased to $750 million, and had no borrowings under this facility as of July 30, 2023[112][113] Cost and Expenses - Cost of goods sold for the second quarter increased to 59.3% of net revenues, up from 56.5% in the prior year, driven by higher input and shipping costs[100] - Selling, general and administrative (SG&A) expenses decreased by $77.3 million, or 13.7%, in Q2 FY2023 compared to Q2 FY2022, with SG&A as a percentage of net revenues decreasing to 26.1% from 26.4%[103] - For the first half of FY2023, SG&A expenses decreased by $106.8 million, or 10.0%, compared to the first half of FY2022, with SG&A as a percentage of net revenues increasing slightly to 26.6% from 26.5%[104] Capital Expenditures and Shareholder Returns - The company invested $92.9 million in capital expenditures in the first half of fiscal 2023 while returning $426.6 million to shareholders through stock repurchases and dividends[88] Tax and Compliance - The effective tax rate for the first half of FY2023 was 25.4%, up from 24.4% in the first half of FY2022, with an expected effective tax rate of approximately 26.0% for FY2023[105] - The company is in compliance with its financial covenants under its Credit Facility and expects to remain compliant for the next 12 months[114] Future Expectations - The company expects pre-tax annualized savings of approximately $42 million from exit and reduction-in-force initiatives, primarily in selling, general and administrative expenses[89] - The company expects to use cash resources for inventory purchases, employment-related costs, advertising, taxes, and stock repurchases for the remainder of FY2023[109] Store Operations - The company operates a total of 532 stores as of July 30, 2023, with an average leased square footage of 11,300[96] Investing and Financing Activities - Net cash used in investing activities for the first half of FY2023 was $92.7 million, down from $148.5 million in the first half of FY2022, primarily for technology and supply chain enhancements[117] - Net cash used in financing activities for the first half of FY2023 was $476.6 million, a decrease from $958.4 million in the first half of FY2022, mainly due to reduced stock repurchases[118]