Williams-Sonoma, Inc. (NYSE:WSM) Q4 2020 Earnings Conference Call March 17, 2021 5:00 PM ET Company Participants Elise Wang - VP, IR Laura Alber - President, CEO & Director Julie Whalen - EVP & CFO Felix Carbullido - EVP & CMO Conference Call Participants Adrian Yih - Barclays Steven Forbes - Guggenheim Securities Oliver Wintermantel - Evercore Seth Basham - Wedbush Securities Cristina Fernández - Telsey Advisory Group Jonathan Matuszewski - Jefferies Marni Shapiro - The Retail Tracker Operator Please stand ...

Table of Contents 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 November 1, 2020. 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 charter) Delaware 94-2203880 (St ...

Williams-Sonoma, Inc. (NYSE:WSM) Q3 2020 Earnings Conference Call November 19, 2020 5:00 PM ET Company Participants Elise Wang - VP, IR Laura Alber - President, CEO & Director Julie Whalen - EVP & CFO Felix Carbullido - EVP & CMO Conference Call Participants Oliver Wintermantel - Evercore ISI Katharine McShane - Goldman Sachs Group Chuck Grom - Gordon Haskett Research Advisors Simeon Gutman - Morgan Stanley Brian Nagel - Oppenheimer Bradley Thomas - KeyBanc Capital Markets Adrian Yih - Barclays Bank Anthony ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including earnings, balance sheets, cash flows, and notes on key policies and impacts Condensed Consolidated Statements of Earnings (Thirteen Weeks Ended) | In thousands, except per share amounts | August 2, 2020 | August 4, 2019 | | :--- | :--- | :--- | | **Net revenues** | **$1,490,777** | **$1,370,814** | | Gross profit | $551,202 | $483,861 | | Operating income | $185,361 | $86,165 | | **Net earnings** | **$134,564** | **$62,648** | | **Diluted earnings per share** | **$1.70** | **$0.79** | Condensed Consolidated Balance Sheet Highlights | In thousands | August 2, 2020 | February 2, 2020 | | :--- | :--- | :--- | | **Total assets** | **$4,487,296** | **$4,054,042** | | Cash and cash equivalents | $947,760 | $432,162 | | Merchandise inventories, net | $1,042,340 | $1,100,544 | | **Total liabilities** | **$3,154,374** | **$2,818,182** | | **Total stockholders' equity** | **$1,332,922** | **$1,235,860** | Condensed Consolidated Statements of Cash Flows (Twenty-six Weeks Ended) | In thousands | August 2, 2020 | August 4, 2019 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | **$216,400** | **($26,636)** | | Net cash used in investing activities | ($75,882) | ($76,719) | | Net cash provided by (used in) financing activities | $377,910 | ($113,471) | | **Net increase (decrease) in cash and cash equivalents** | **$515,598** | **($218,487)** | [Note A: Basis of Presentation and COVID-19 Impact](index=9&type=section&id=NOTE%20A.%20FINANCIAL%20STATEMENTS%20-%20BASIS%20OF%20PRESENTATION) This note details the unaudited financial statements' basis, highlighting significant asset impairment charges and inventory write-offs due to COVID-19, with no goodwill impairment - Due to the COVID-19 pandemic and resulting store closures, the company recorded significant asset impairment charges during the twenty-six weeks ended August 2, 2020[33](index=33&type=chunk) COVID-19 Related Charges (Twenty-six weeks ended Aug 2, 2020) | Charge Type | Amount (in thousands) | | :--- | :--- | | Store Asset Impairment (Property & Equipment) | $16,514 | | Store Asset Impairment (Operating Lease ROU) | $5,461 | | Inventory Write-offs | $11,378 | - The company evaluated goodwill for impairment due to the pandemic but concluded that no impairment charge was necessary as of the second quarter of fiscal 2020[35](index=35&type=chunk)[36](index=36&type=chunk) [Note B: Borrowing Arrangements](index=10&type=section&id=NOTE%20B.%20BORROWING%20ARRANGEMENTS) This note details the company's credit facility, including a $500 million revolver and $300 million term loan, amended in May 2020, and a new $200 million revolving line of credit - In May 2020, the company amended its credit facility, extending the maturity of its **$300 million** term loan to January 8, 2022[44](index=44&type=chunk) - A new **$200 million** 364-Day Credit Agreement for an additional unsecured revolving line of credit was entered into during the second quarter of fiscal 2020[48](index=48&type=chunk) - As of August 2, 2020, the company had **$300 million** outstanding under its term loan and had borrowed **$487.8 million** under its revolver during fiscal 2020[45](index=45&type=chunk)[47](index=47&type=chunk) [Note E: Segment Reporting](index=13&type=section&id=NOTE%20E.%20SEGMENT%20REPORTING) This note explains the aggregation of operating segments into a single reportable segment, detailing net revenues by brand, with Pottery Barn and West Elm as top contributors Net Revenues by Brand (Thirteen Weeks Ended) | Brand | August 2, 2020 (in thousands) | August 4, 2019 (in thousands) | | :--- | :--- | :--- | | Pottery Barn | $563,276 | $524,847 | | West Elm | $380,552 | $357,574 | | Williams Sonoma | $243,133 | $191,374 | | Pottery Barn Kids and Teen | $235,987 | $227,853 | | Other | $67,829 | $69,166 | | **Total** | **$1,490,777** | **$1,370,814** | [Note G: Stock Repurchase Program and Dividends](index=13&type=section&id=NOTE%20G.%20STOCK%20REPURCHASE%20PROGRAM%20AND%20DIVIDENDS) This note states no stock repurchases occurred in H1 2020, with **$575 million** remaining for repurchases, and **$0.48** cash dividends per share declared - No shares of common stock were repurchased during the thirteen and twenty-six weeks ended August 2, 2020[65](index=65&type=chunk) - As of August 2, 2020, **$574.982 million** remained available under the company's stock repurchase program[65](index=65&type=chunk) - The company declared cash dividends of **$0.48** per common share during the second quarter of 2020, the same amount as in the second quarter of 2019[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2020 financial results, highlighting an **8.8%** net revenue increase driven by e-commerce, improved liquidity, and anticipated higher shipping and safety costs - Q2 2020 net revenues increased **8.8%** to **$1.49 billion**, with comparable brand revenue growth of **10.5%**, driven by strong e-commerce sales which offset declines from temporary retail store closures[101](index=101&type=chunk) - Diluted EPS for Q2 2020 was **$1.70**, a significant increase from **$0.79** in Q2 2019. This included a **$0.06** impact from store asset impairments[104](index=104&type=chunk) - The company bolstered its financial flexibility by extending its **$300 million** term loan and obtaining an additional **$200 million** in borrowing capacity through a new credit line[103](index=103&type=chunk) - Looking ahead, the company expects robust sales but anticipates higher shipping costs due to third-party surcharges and incremental costs for safety measures related to the pandemic[106](index=106&type=chunk) [Net Revenues](index=21&type=section&id=NET%20REVENUES) Net revenues for Q2 2020 increased **8.8%** to **$1.20 billion**, driven by **10.5%** comparable brand revenue growth and strong e-commerce, offsetting retail declines Comparable Brand Revenue Growth | Brand | Q2 2020 | Q2 2019 | | :--- | :--- | :--- | | Pottery Barn | 8.1% | 4.2% | | West Elm | 7.0% | 17.5% | | Williams Sonoma | 29.4% | (1.1%) | | Pottery Barn Kids and Teen | 4.8% | 3.7% | | **Total** | **10.5%** | **6.5%** | [Cost of Goods Sold](index=22&type=section&id=COST%20OF%20GOODS%20SOLD) COGS as a percentage of net revenues decreased to **63.0%** in Q2 2020, driven by higher merchandise margins and occupancy leverage, partially offset by increased shipping costs - COGS as a percentage of net revenues decreased by **170 basis points** in Q2 2020 compared to Q2 2019, driven by higher merchandise margins and occupancy leverage[119](index=119&type=chunk) - The decrease in COGS percentage was partially offset by higher shipping costs due to a shift to e-commerce and surcharges from third-party shippers related to COVID-19[119](index=119&type=chunk) [Selling, General and Administrative Expenses](index=22&type=section&id=SELLING%2C%20GENERAL%20AND%20ADMINISTRATIVE%20EXPENSES) SG&A expenses decreased by **8.0%** in Q2 2020, falling to **24.5%** of net revenues due to advertising and employment cost leverage, partially offset by **$6.355 million** in impairment charges - SG&A as a percentage of net revenues decreased by **450 basis points** in Q2 2020 compared to Q2 2019[123](index=123&type=chunk) - The improvement was driven by leverage on advertising and employment costs, partially offset by **$6.355 million** in store asset impairment charges[123](index=123&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of August 2, 2020, the company held **$947.8 million** in cash, bolstered liquidity by drawing **$487.8 million** on its credit line, and generated **$216.4 million** in operating cash flow - Cash and cash equivalents stood at **$947.76 million** as of August 2, 2020[126](index=126&type=chunk) - As a precautionary measure, the company drew down **$487.823 million** on its revolving line of credit during the first quarter of fiscal 2020[127](index=127&type=chunk) - Net cash provided by operating activities for year-to-date fiscal 2020 was **$216.4 million**, compared to net cash used of **$26.636 million** for the same period in 2019[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from changes in interest rates and foreign currency exchange rates, managing foreign currency risk with forward contracts - The company is subject to interest rate risk on its variable-rate revolver and term loan. As of Q2 2020, it had borrowings of **$487.8 million** under the revolver and **$300 million** outstanding on the term loan[140](index=140&type=chunk) - Foreign currency risk is present due to operations in Canada, Australia, and the UK. The company mitigates this risk by hedging a portion of its exposure with foreign currency forward contracts[143](index=143&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of August 2, 2020, with no material changes in internal control over financial reporting - Management concluded that as of August 2, 2020, the company's disclosure controls and procedures were effective[144](index=144&type=chunk) - No changes occurred during the recent fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[145](index=145&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits and claims incidental to its ordinary course of business, with management believing no material adverse effect on financial statements - Information regarding legal proceedings is contained in Note F to the Condensed Consolidated Financial Statements[147](index=147&type=chunk) [Risk Factors](index=26&type=page&id=Item%201A.%20Risk%20Factors) This section updates risk factors, focusing on the uncertain impact of the COVID-19 pandemic, including reduced store traffic, supply chain disruptions, and increased shipping costs - The COVID-19 pandemic continues to materially impact the business, with the full duration and extent of its effect on future operations remaining uncertain[149](index=149&type=chunk) - Reduced store traffic and closures have negatively impacted retail revenues and may continue to do so, potentially leading to further asset impairment charges[151](index=151&type=chunk) - The company has incurred and expects to continue to incur higher shipping costs due to surcharges from third-party shippers, especially during the peak holiday season[155](index=155&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during Q2 fiscal 2020, and its stock repurchase program has no expiration date - There were no repurchases of common stock in the second quarter of fiscal 2020[161](index=161&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to credit agreements, CEO and CFO certifications, and financial statements in Inline XBRL - Filed exhibits include the First Amendment to the Credit Agreement and the new 364-Day Credit Agreement[165](index=165&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to the Securities Exchange Act and Sarbanes-Oxley Act were also filed[165](index=165&type=chunk)

Williams-Sonoma, Inc. (NYSE:WSM) Q2 2020 Earnings Conference Call August 26, 2020 5:00 PM ET Company Participants Elise Wang - VP, IR Laura Alber - President and CEO Julie Whalen - CFO Felix Carbullido - CMO Yasir Anwar - Chief Technology Officer Conference Call Participants Adrienne Yih - Barclays Peter Benedict - Baird Brian Nagel - Oppenheimer Oliver Wintermantel - Evercore ISI Chris Horvers - JPMorgan Chuck Grom - Gordon Haskett Seth Basham - Wedbush Brad Thomas - KeyBanc Capital Markets Michael Lasser ...

Financial Performance & Growth - Williams-Sonoma, Inc has a strong track record of profitable growth, demonstrating resilience during the COVID-19 pandemic [3, 6] - From FY2010 to FY2019, the company achieved a 6% Compound Annual Growth Rate (CAGR) in net revenues [6] - Non-GAAP EPS from FY2010 to FY2019 shows an 11% CAGR [6] - In Q1 FY2019, e-commerce accounted for 54% of sales, which increased to 71% in Q1 FY2020 [6] Market Opportunity & Strengths - The industry is highly fragmented, with 50% of sales coming from smaller, regional players [21] - E-commerce remains underpenetrated, with 80% of industry sales still occurring in-store [23] - 70% of consumers value sustainability in their brand choices [25] - The company has a highly developed e-commerce platform with over 50% of sales online [30] Growth Roadmap & Initiatives - West Elm is on track to double annual revenues to $3 billion globally [39] - Cross-brand customers spend 4 times more than single-brand customers [53] - The Key loyalty program has 102 million members [58] - The company is pursuing a $36 billion addressable market opportunity in Business to Business (B2B) [61] - The company aims to expand its footprint in the $330 billion global market [64]

Table of Contents 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 3, 2020. 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 charter) Delaware 94-2203880 (State o ...

Williams-Sonoma, Inc. (NYSE:WSM) Q1 2020 Earnings Conference Call May 28, 2020 5:00 PM ET Company Participants Elise Wang - VP, IR Laura Alber - President and CEO Julie Whalen - CFO Felix Carbullido - CMO Conference Call Participants Seth Basham - Wedbush Brian Nagel - Oppenheimer Justin Kleber - Baird Oliver Wintermantel - Evercore ISI Cristina Fernández - Telsey Advisory Group Simeon Gutman - Morgan Stanley Chuck Grom - Gordon Haskett Bobby Griffin - Raymond James Atul Maheswari - UBS Marni Shapiro - Reta ...

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 For the fiscal year ended February 2, 2020. 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 charter) | Delaware | 94-2203880 | | --- ...

Williams-Sonoma, Inc. (NYSE:WSM) Q4 2019 Earnings Conference Call March 18, 2020 5:00 PM ET Company Participants Elise Wang - VP, IR Laura Alber - President & Chief Executive Officer Julie Whalen - Chief Financial Officer Felix Carbullido - Chief Marketing Officer Yasir Anwar - Chief Technology Officer Conference Call Participants Adrienne Yih - Barclays Chuck Grom - Gordon Haskett Kate McShane - Goldman Sachs Peter Benedict - Baird Brian Nagel - Oppenheimer Michael Lasser - UBS Curtis Nagle - Bank of Ameri ...