Williams-Sonoma, Inc. (NYSE:WSM) Q1 2022 Results Conference Call May 25, 2022 5:00 PM ET Company Participants Jeremy Brooks - Chief Accounting Officer and Head, IR Laura Alber - President and CEO Julie Whalen - EVP and CFO Felix Carbullido - EVP and Chief Marketing Officer Yasir Anwar - Chief Technology Officer Conference Call Participants Seth Basham - Wedbush Securities Adrienne Yih - Barclays Chuck Grom - Gordon Haskett Cristina Fernández - Telsey Advisory Group Jason Haas - Bank of America Max Rakhlenko ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One): ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 网 For the fiscal year ended January 30, 2022. 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 Delaware (State or other jurisdiction of incorporation or organization) 3250 Van Ness Avenue, San Francisco, C ...

Williams-Sonoma, Inc. (NYSE:WSM) Q4 2021 Earnings Conference Call March 16, 2022 5:00 PM ET Company Participants Jeremy Brooks - Chief Accounting Officer and Head of Investor Relations Laura Alber - President and Chief Executive Officer Julie Whalen - Chief Financial Officer Felix Carbullido - EVP and Chief Marketing Officer Conference Call Participants Max Rakhlenko - Cowen and Company Anthony Chukumba - Loop Capital Markets Cristina Fernandez - Telsey Advisory Group Greg Sommer - Gordon Haskett Michael K ...

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 31, 2021. Registrant's telephone number, including area code: (415) 421-7900 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 ...

Financial Data and Key Metrics Changes - The company reported net revenues of $2.048 billion, a 16% increase year-over-year, with comparable brand revenue growth of 16.9% and a two-year comp acceleration to 41.3% [49][60] - Gross margin expanded by 370 basis points to 43.7%, with selling margins dropping by 280 basis points, yet still reflecting a 430 basis point increase relative to 2019 [52][60] - Operating income reached a record $333 million, resulting in an operating margin of 16.3%, an increase of 60 basis points from the previous year [59][60] - Diluted earnings per share increased by 30% to $3.32 from $2.56 in the prior year [59] Business Line Data and Key Metrics Changes - West Elm achieved a 22.5% comparable sales growth, contributing over $1.5 billion in year-to-date revenues [50][22] - Pottery Barn reported a 15.9% comp growth, marking its fifth consecutive quarter of double-digit comps [50][24] - Pottery Barn Kids and Teens grew by 16.9%, with strong demand for GREENGUARD Gold Certified furniture [50][25] - Williams-Sonoma brand saw a 7.6% comp growth, driven by product innovation and high demand for holiday products [50][26] - Emerging brands Rejuvenation and Mark and Graham combined reported a 26.5% comp growth [51] Market Data and Key Metrics Changes - The housing market remains strong, with increased purchases of larger homes and a shift towards hybrid work arrangements, driving demand for home furnishings [9][48] - The company noted a significant shift in consumer behavior towards online purchasing, accelerated by the pandemic and the millennial generation entering home formation years [10][11] Company Strategy and Development Direction - The company is focused on capturing market share in a fragmented industry, with a market opportunity of nearly $1 trillion [8] - The strategy includes enhancing e-commerce capabilities while maintaining a strong in-store experience, positioning the company as a digital-first but not digital-only retailer [11][48] - Sustainability is a core value, with nearly 70% of consumers preferring brands that prioritize sustainability [12][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue taking market share and delivering sustainable earnings, supported by macro trends and unique differentiators [17][66] - The company raised its full-year outlook for revenue growth to 22% to 23% and operating margins to 16.9% to 17.1% [7][66] - Management acknowledged supply chain challenges but highlighted improvements in upholstery lead times and strong vendor relationships [19][21] Other Important Information - The company has raised minimum wages to at least $15 an hour for all employees, reflecting a commitment to competitive compensation [39][86] - The loyalty program is designed to enhance customer retention and increase share of wallet, with multi-brand customers spending significantly more than single-brand customers [36][95] Q&A Session Summary Question: Backlog increase and demand comparison - Management confirmed that back orders increased from the second quarter and that demand comps are in line with net comps [77] Question: Customer acquisition costs and advertising - The company has invested in in-house measurement tools to manage advertising costs effectively, maintaining a focus on high ROI programs [78][79] Question: Williams-Sonoma Home growth potential - Management expressed optimism about Williams-Sonoma Home as a growth driver, indicating it is not included in the $10 billion revenue target [81][84] Question: Inventory flow and supply chain challenges - Management expects inventory levels to improve marginally, but full recovery is anticipated to take time due to ongoing supply chain disruptions [88][90] Question: Demographics of new customers - The company is seeing growth across all generations and income bands, with significant engagement from millennials [93] Question: Pathway to $10 billion revenue target - Management indicated that achieving the $10 billion target involves mid to high single-digit growth annually [97][98] Question: B2B revenue potential - Management sees significant long-term potential in the B2B segment, with a market size of approximately $80 billion [100] Question: Holiday season outlook - Management is optimistic about holiday sales, noting strong demand for seasonal merchandise and core business products [120][121]

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 1, 2021. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ For the transition period from to Commission File Number: 001-14077 _________________________ WILLIAMS-SONOMA, INC. (Exact name of regis ...

Financial Data and Key Metrics Changes - The company reported net revenues of approximately $1.95 billion, reflecting over 30% growth year-over-year, with comparable brand revenue growth of 29.8% and 40.3% on a two-year stack [24] - Operating income reached a record $326 million, resulting in an operating margin of 16.7%, which expanded by 360 basis points compared to the previous year [27] - Diluted earnings per share increased by 80% to $3.24 from $1.80 in the same quarter last year [27] Business Line Data and Key Metrics Changes - West Elm achieved a record comparable sales growth of 51.1%, with over 58% growth on a two-year basis [24] - Pottery Barn generated nearly $750 million in revenue with a comparable sales growth of 29.6% [24] - The Williams-Sonoma brand saw a 6.4% comparable sales increase, building on a prior year growth of 29.4% [24] - Emerging brands Rejuvenation and Mark and Graham combined saw a 42.3% comparable sales growth [24] Market Data and Key Metrics Changes - E-commerce sales grew by 12%, maintaining a 65% revenue mix, while retail sales drove a 98% comparable growth [13][19] - The global business segment grew nearly 50% to approximately $116 million [24] - The company anticipates home sales in 2021 to grow more than 20%, the highest since 2005 [7] Company Strategy and Development Direction - The company is raising its full-year revenue outlook to high teens to low 20s growth, with operating margins projected between 16% to 17% [8][29] - The strategic focus includes expanding the B2B segment, which is on track to reach nearly $700 million by year-end [11] - The company aims to achieve $10 billion in revenues by 2024, one year earlier than previously expected [8][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued market share gains, citing strong demand and favorable macro trends [21] - The company noted that the acceptance of remote work is expected to nearly double in five years, driving home investment [8] - Management highlighted the importance of sustainability and values in their business model, which resonates with consumers [20] Other Important Information - The company has committed to significant ESG goals, including keeping 75% of waste out of landfills and sourcing 75% of products from suppliers with worker well-being programs [20] - The company announced a 20% increase in quarterly dividends and a new share repurchase authorization of $1.25 billion [31] Q&A Session Summary Question: Can you help us understand the gross margin and merchandise margins? - Management noted that merchandise margin expansion has been a focus, with a shift away from site-wide promotions allowing for better pricing power [36] Question: How did demand progress through the quarter? - Management reported strong demand throughout the quarter, with no signs of waning, and expressed optimism for future performance [40] Question: What is the outlook for the wedding registry business? - The wedding registry business saw a 98% increase, indicating strong recovery as weddings resume [45] Question: How is the company navigating supply chain challenges? - Management acknowledged ongoing supply chain disruptions but emphasized their strong position to manage these challenges effectively [62] Question: What are the expectations for advertising spend? - The company plans to incrementally invest in advertising, viewing it as a competitive advantage to drive new customer acquisition [48]

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 May 2, 2021. 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 _________________________ WILLIAMS-SONOMA, INC. (Exact name of registrant as specified in its cha ...

Williams-Sonoma, Inc. (NYSE:WSM) Q1 2021 Earnings Conference Call May 26, 2021 5:00 PM ET Company Participants Elise Wang - Vice President, Investor Relations Laura Alber - President & Chief Executive Officer Julie Whalen - Executive Vice President & Chief Financial Officer Felix Carbullido - Executive Vice President & Chief Marketing Officer Conference Call Participants Oliver Wintermantel - Evercore ISI Adrienne Yih - Barclays Max Rakhlenko - Cowen and Company Cristina Fernández - Telsey Advisory Group St ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Williams-Sonoma is an omni-channel specialty retailer of high-quality home products, operating a portfolio of distinct brands with significant foreign sourcing and Q4 seasonality - The company operates as a digital-first, design-led, and sustainable home retailer with **eight core merchandise strategies**[21](index=21&type=chunk) - As of January 31, 2021, the company operates **581 stores** globally, complemented by **136 franchised locations**[31](index=31&type=chunk) - Approximately **65% of merchandise purchases** in fiscal 2020 were sourced from foreign vendors, primarily in Asia and Europe[33](index=33&type=chunk) - The business is highly seasonal, with a significant portion of net revenues and earnings realized during the **fourth quarter**[35](index=35&type=chunk) - As of January 31, 2021, the company had approximately **21,000 employees**, including **12,200 full-time** and **10,000 temporary holiday staff**[36](index=36&type=chunk) [Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including pandemic impacts, economic downturns, supply chain disruptions, cybersecurity threats, foreign vendor dependence, and financial management challenges [Risks Related to our Business](index=12&type=section&id=Risks%20Related%20to%20our%20Business) Business risks include COVID-19 impacts, sensitivity to consumer spending, challenges in inventory and trend management, intense competition, and complexities of the omni-channel, multi-brand model - The COVID-19 pandemic has materially impacted the business through temporary store closures, largely offset by **e-commerce growth**, though future impacts on supply chains and costs remain uncertain[63](index=63&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - Business performance is sensitive to **consumer discretionary spending**, influenced by economic conditions, unemployment, and consumer confidence[73](index=73&type=chunk)[74](index=74&type=chunk) - The e-commerce channel, accounting for **over 70% of net revenues** in fiscal 2020, is critical, with management failures potentially harming operating results[91](index=91&type=chunk)[92](index=92&type=chunk) - The omni-channel, multi-brand structure poses risks, including potential **cannibalization of retail sales** by e-commerce or new brands[101](index=101&type=chunk) [Risks Related to Technology](index=20&type=section&id=Risks%20Related%20to%20Technology) Technology risks include cybersecurity threats, data privacy compliance with evolving laws like GDPR and CCPA, and potential business disruption from ongoing core information system replacements - A security breach involving online customer data could lead to **loss of consumer confidence**, litigation, and regulatory investigations[112](index=112&type=chunk) - Non-compliance with evolving global data privacy laws like **GDPR** and **CCPA/CPRA** could result in substantial financial penalties and reputational harm[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - Significant system changes, including new **ERP system implementation** in fiscal 2020, carry inherent risks of disrupting core operations[118](index=118&type=chunk)[120](index=120&type=chunk) [Risks Related to our Vendors and Global Operations](index=22&type=section&id=Risks%20Related%20to%20our%20Vendors%20and%20Global%20Operations) Reliance on foreign vendors and global expansion expose the company to risks from currency fluctuations, trade restrictions, political instability, and supply chain disruptions - Approximately **65% of merchandise** sourced from foreign vendors in fiscal 2020 creates exposure to currency fluctuations, trade restrictions, political unrest, and supply chain disruptions[122](index=122&type=chunk)[123](index=123&type=chunk) - Global expansion efforts, including company-owned stores and franchise operations, face risks from lack of foreign market experience, differing consumer preferences, and political or economic instability[130](index=130&type=chunk) - The company's results depend on franchisee performance, with potential brand reputation harm if standards are not adhered to[132](index=132&type=chunk) [Risks Related to Taxes and Tariffs](index=26&type=section&id=Risks%20Related%20to%20Taxes%20and%20Tariffs) Financial results are vulnerable to changes in tax and trade policies, including import tariffs on foreign-manufactured goods and volatility in income tax obligations - Tariffs on items sourced from China could increase **cost of goods**, force price increases, and adversely affect operating results despite mitigation efforts[141](index=141&type=chunk) - Income tax provision is subject to volatility from changes in earnings mix across jurisdictions, tax examination resolutions, and tax law changes[142](index=142&type=chunk) [Risks Related to our Financial Statements and Liquidity](index=26&type=section&id=Risks%20Related%20to%20our%20Financial%20Statements%20and%20Liquidity) Financial risks include liquidity challenges, seasonality impacts on operating results, dependence of capital allocation on cash flow, and the importance of effective internal controls and accounting estimates - Quarterly operating results fluctuate due to **seasonality**, with a significant portion of net revenues and earnings realized in the fourth quarter[151](index=151&type=chunk) - The ability to pay quarterly dividends and repurchase stock depends on sufficient cash flow, with a new **$1 billion share repurchase authorization** approved in March 2021[155](index=155&type=chunk) - Failure to maintain effective internal controls, as required by **Sarbanes-Oxley Act Section 404**, could impair financial statement accuracy and harm investor confidence[156](index=156&type=chunk) - Changes in cash flow projection estimates could lead to **impairment charges** on long-lived assets, adversely affecting operating results[160](index=160&type=chunk) [Unresolved Staff Comments](index=30&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) No unresolved staff comments are reported for this period - None[161](index=161&type=chunk) [Properties](index=30&type=section&id=Item%202.%20Properties) The company primarily leases its 581 store locations and facilities, totaling approximately **6.3 million square feet**, while owning **471,000 square feet** for corporate headquarters Occupied Square Footage by Location (Approximate) | Location | Occupied Square Footage (Approximate) | | :--- | :--- | | **Distribution and Manufacturing Facilities** | | | Mississippi | 2,258,000 | | New Jersey | 2,103,000 | | California | 2,030,000 | | Texas | 1,298,000 | | Georgia | 1,075,000 | | Tennessee | 603,000 | | North Carolina | 442,000 | | **Corporate Facilities** | | | California | 269,000 | | New York | 238,000 | - As of January 31, 2021, the company owned **471,000 square feet** of space, primarily in California, for corporate headquarters and data center operations[165](index=165&type=chunk) [Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, which management believes will not materially affect consolidated financial statements - The company is involved in ordinary course lawsuits and claims, with management believing their ultimate resolution will not materially affect consolidated financial statements[166](index=166&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[167](index=167&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE under WSM, with **$150 million** in repurchases in fiscal 2020 and a new **$1 billion** program authorized in March 2021 - During fiscal 2020, the company repurchased **1,496,100 shares** for **$150 million**, followed by a new **$1 billion stock repurchase program** authorization in March 2021[175](index=175&type=chunk) Issuer Purchases of Equity Securities | Fiscal period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program | | :--- | :--- | :--- | :--- | | Nov 2, 2020 – Nov 29, 2020 | 125,310 | $98.91 | 125,310 | | Nov 30, 2020 – Dec 27, 2020 | 116,800 | $108.75 | 116,800 | | Dec 28, 2020 – Jan 31, 2021 | 134,655 | $117.75 | 134,655 | | **Total** | **376,765** | **$108.69** | **376,765** | [Selected Financial Data](index=34&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents a five-year summary of key financial and operational data, highlighting trends in net revenues, profitability, financial position, and store count Selected Financial and Operational Data | In thousands, except per share amounts | Fiscal 2020 | Fiscal 2019 | Fiscal 2018 | | :--- | :--- | :--- | :--- | | Net revenues (in thousands) | $6,783,189 | $5,898,008 | $5,671,593 | | Net revenue growth | 15.0% | 4.0% | 7.2% | | Comparable brand revenue growth | 17.0% | 6.0% | 3.7% | | Gross margin | 38.9% | 36.3% | 37.0% | | Operating margin | 13.4% | 7.9% | 7.7% | | Net earnings (in thousands) | $680,714 | $356,062 | $333,684 | | Diluted earnings per share (per share) | $8.61 | $4.49 | $4.05 | | Net cash provided by operating activities (in thousands) | $1,274,848 | $607,294 | $585,986 | | Number of stores at year-end (number of stores) | 581 | 614 | 625 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses fiscal 2020 financial results, highlighting **15.0% net revenue growth** and **17.0% comparable brand revenue growth** driven by e-commerce, significant operating margin expansion, and a strong **$1.2 billion cash** liquidity position [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Fiscal 2020 saw **15.0% net revenue growth** to **$6.78 billion** and **17.0% comparable brand revenue growth**, driven by e-commerce, with improved gross and operating margins due to cost leverage Net Revenues by Brand (in thousands) | In thousands | Fiscal 2020 | Fiscal 2019 | | :--- | :--- | :--- | | Pottery Barn | $2,526,241 | $2,214,397 | | West Elm | 1,682,254 | 1,466,537 | | Williams Sonoma | 1,242,271 | 1,032,368 | | Pottery Barn Kids and Teen | 1,042,531 | 908,561 | | Other | 289,892 | 276,145 | | **Total** | **$6,783,189** | **$5,898,008** | Comparable Brand Revenue Growth | Comparable brand revenue growth | Fiscal 2020 | Fiscal 2019 | | :--- | :--- | :--- | | Pottery Barn | 15.2% | 4.1% | | West Elm | 15.2% | 14.4% | | Williams Sonoma | 23.8% | 0.4% | | Pottery Barn Kids and Teen | 16.6% | 4.5% | | **Total** | **17.0%** | **6.0%** | - Cost of goods sold as a percentage of net revenues decreased to **61.1%** in fiscal 2020 from **63.7%** in fiscal 2019, driven by higher merchandise margins and occupancy leverage[212](index=212&type=chunk) - Selling, general and administrative expenses as a percentage of net revenues decreased to **25.4%** in fiscal 2020 from **28.4%** in fiscal 2019, driven by lower advertising and employment cost leverage[215](index=215&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company ended fiscal 2020 with strong liquidity, including **$1.2 billion in cash** and **$1.27 billion** in operating cash flow, with a **$300 million term loan** repaid in February 2021 - As of January 31, 2021, the company held **$1.2 billion in cash and cash equivalents**, a significant increase from **$432.16 million** at the end of fiscal 2019[217](index=217&type=chunk) - Net cash provided by operating activities was **$1.27 billion** for fiscal 2020, more than double the **$607.29 million** generated in fiscal 2019, primarily due to higher net earnings[225](index=225&type=chunk) - The company had a **$300 million outstanding term loan** as of January 31, 2021, fully repaid in February 2021 prior to maturity[221](index=221&type=chunk) Contractual Obligations (in thousands) | In thousands | Fiscal 2021 | Fiscal 2022 to Fiscal 2024 | Fiscal 2025 to Fiscal 2026 | Thereafter | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Current debt | $300,000 | — | — | — | $300,000 | | Operating leases | 267,760 | 605,121 | 263,192 | 291,356 | 1,427,429 | | Purchase obligations | 1,350,121 | 22,456 | — | — | 1,372,577 | | **Total** | **$1,918,423** | **$627,577** | **$263,192** | **$291,356** | **$3,100,548** | [Critical Accounting Policies and Estimates](index=43&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Critical accounting policies involve significant estimates for merchandise inventories, long-lived asset impairment, lease accounting, and income taxes, requiring substantial management judgment - Significant estimates are used for inventory valuation, with **$9.827 million** in obsolescence reserves as of January 31, 2021[242](index=242&type=chunk)[244](index=244&type=chunk) - A comprehensive review of long-lived assets in fiscal 2020, due to COVID-19, resulted in **$27.1 million in impairment charges**, including **$19.2 million** for property and equipment and **$7.9 million** for right-of-use assets[245](index=245&type=chunk)[247](index=247&type=chunk)[249](index=249&type=chunk) - Lease accounting requires judgment in determining the incremental borrowing rate, which was a weighted average of **3.6%** in fiscal 2020[253](index=253&type=chunk)[352](index=352&type=chunk) - Income tax accounting involves estimating reserves for uncertain tax positions and determining the annual effective tax rate, which can be materially impacted by earnings mix across jurisdictions[255](index=255&type=chunk)[256](index=256&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily interest rate risk from variable-rate debt and foreign currency risk from international operations, partially mitigated by hedging strategies - The company's variable rate debt exposes it to interest rate risk, though a hypothetical **1% change** in rates would not materially affect results[259](index=259&type=chunk) - Foreign currency risk from international operations is partially mitigated by hedging a portion of exposure with foreign currency forward contracts[262](index=262&type=chunk) [Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year ended January 31, 2021, including key statements and accompanying notes [Consolidated Financial Statements](index=47&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show fiscal 2020 net earnings of **$680.7 million** on **$6.78 billion** net revenues, with total assets at **$4.66 billion** and strong **$1.27 billion** operating cash flow Consolidated Statements of Earnings (in thousands, except per share amounts) | In thousands, except per share amounts | Fiscal 2020 | Fiscal 2019 | Fiscal 2018 | | :--- | :--- | :--- | :--- | | Net revenues (in thousands) | $6,783,189 | $5,898,008 | $5,671,593 | | Gross profit (in thousands) | 2,636,269 | 2,139,092 | 2,101,013 | | Operating income (in thousands) | 910,697 | 465,874 | 435,953 | | Net earnings (in thousands) | $680,714 | $356,062 | $333,684 | | Diluted earnings per share (per share) | $8.61 | $4.49 | $4.05 | Consolidated Balance Sheets (in thousands) | In thousands | Jan. 31, 2021 | Feb. 2, 2020 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $1,200,337 | $432,162 | | Merchandise inventories, net | 1,006,299 | 1,100,544 | | Total current assets | 2,467,080 | 1,755,635 | | Total assets | $4,661,424 | $4,054,042 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | 1,848,000 | 1,609,555 | | Total liabilities | 3,010,239 | 2,818,182 | | Total stockholders' equity | 1,651,185 | 1,235,860 | | Total liabilities and stockholders' equity | $4,661,424 | $4,054,042 | [Notes to Consolidated Financial Statements](index=51&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes to consolidated financial statements provide detailed information on significant accounting policies, borrowing arrangements, income taxes, leases, stock-based compensation, and segment reporting - The company adopted the new lease accounting standard in fiscal 2019, recognizing approximately **$1.2 billion in right-of-use assets** and **$1.4 billion in lease liabilities**[327](index=327&type=chunk) - As of January 31, 2021, the company had a **$300 million term loan** (repaid Feb 2021) and access to **$700 million in revolving credit facilities**, with no amounts drawn[334](index=334&type=chunk)[338](index=338&type=chunk)[339](index=339&type=chunk) - The company aggregates its brand-based operating segments into a **single reportable segment** due to similar economic and qualitative characteristics[374](index=374&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=73&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) No changes in or disagreements with accountants on accounting and financial disclosure were reported - None[418](index=418&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of January 31, 2021, with no significant changes in Q4 fiscal 2020 - Management concluded that the company's disclosure controls and procedures were **effective** as of January 31, 2021[419](index=419&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of January 31, 2021, based on COSO criteria[422](index=422&type=chunk) [Other Information](index=74&type=section&id=Item%209B.%20Other%20Information) No other information is reported for this section - None[425](index=425&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=75&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 2021 Proxy Statement - Information required by this item is incorporated by reference from the company's **2021 Proxy Statement**[428](index=428&type=chunk) [Executive Compensation](index=75&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation, including director and compensation committee details, is incorporated by reference from the 2021 Proxy Statement - Information required by this item is incorporated by reference from the company's **Proxy Statement**[429](index=429&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=75&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of principal stockholders and management is incorporated by reference from the 2021 Proxy Statement - Information required by this item is incorporated by reference from the company's **Proxy Statement**[430](index=430&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=75&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 2021 Proxy Statement - Information required by this item is incorporated by reference from the company's **Proxy Statement**[431](index=431&type=chunk) [Principal Accountant Fees and Services](index=75&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2021 Proxy Statement - Information required by this item is incorporated by reference from the company's **Proxy Statement**[432](index=432&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=76&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits included in or incorporated by reference into the Form 10-K - This item lists financial statements filed under Item 8 and provides an index of all exhibits filed with or incorporated by reference into the **Form 10-K**[434](index=434&type=chunk)[436](index=436&type=chunk) [Form 10-K Summary](index=82&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided for this report - None[449](index=449&type=chunk)