Williams-Sonoma, Inc. (NYSE:WSM) Q2 2022 Earnings Conference Call August 24, 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 Conference Call Participants Max Rakhlenko - Cowen and Company Cristina Fernández - Telsey Advisory Group Adrienne Yih - Barclays Seth Basham - Wedbush Securities Anthony Chukumba - Loop Capital Markets Chuck Grom - Gordon Haskett ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Williams-Sonoma, Inc.'s unaudited Condensed Consolidated Financial Statements for the thirteen weeks ended May 1, 2022, including earnings, balance sheets, cash flows, and accompanying notes [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Net revenues for Q1 2022 reached $1.89 billion, with operating income of $323.5 million and net earnings of $254.1 million, yielding diluted EPS of $3.50 Q1 2022 vs Q1 2021 Statement of Earnings (in thousands, except per share amounts) | Metric | May 1, 2022 | May 2, 2021 | | :--- | :--- | :--- | | Net revenues | $1,891,227 | $1,749,029 | | Gross profit | $828,548 | $752,853 | | Operating income | $323,481 | $275,177 | | Net earnings | $254,113 | $227,802 | | Diluted earnings per share | $3.50 | $2.90 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of May 1, 2022, total assets were $4.21 billion, with cash at $324.8 million and inventories at $1.40 billion, while total liabilities were $2.90 billion and equity was $1.31 billion Key Balance Sheet Items (in thousands) | Metric | May 1, 2022 | January 30, 2022 | May 2, 2021 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $324,835 | $850,338 | $639,670 | | Merchandise inventories, net | $1,396,135 | $1,246,372 | $1,087,528 | | Total assets | $4,210,713 | $4,625,620 | $4,110,240 | | Total liabilities | $2,900,969 | $2,961,413 | $2,662,944 | | Total stockholders' equity | $1,309,744 | $1,664,207 | $1,447,296 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $184.5 million in Q1 2022, with $71.1 million used in investing and $637.7 million in financing activities, resulting in a $525.5 million net cash decrease Cash Flow Summary (in thousands) | Cash Flow Activity | For the Thirteen Weeks Ended May 1, 2022 | For the Thirteen Weeks Ended May 2, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $184,519 | $238,881 | | Net cash used in investing activities | $(71,100) | $(42,267) | | Net cash used in financing activities | $(637,733) | $(759,556) | | Net decrease in cash and cash equivalents | $(525,503) | $(560,667) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide context to the financial statements, detailing accounting policies, borrowing arrangements, segment reporting, and the impact of global supply chain disruptions - Global supply chain disruptions, including factory closures and port congestion, continued into Q1 2022, causing inventory delays and higher costs. These challenges are expected to persist for the remainder of fiscal 2022[27](index=27&type=chunk) Net Revenues by Brand (in thousands) | Brand | For the Thirteen Weeks Ended May 1, 2022 | For the Thirteen Weeks Ended May 2, 2021 | | :--- | :--- | :--- | | Pottery Barn | $774,646 | $679,055 | | West Elm | $536,293 | $477,317 | | Williams Sonoma | $252,220 | $265,607 | | Pottery Barn Kids and Teen | $226,969 | $236,067 | | Other | $101,099 | $90,983 | | **Total** | **$1,891,227** | **$1,749,029** | - In March 2022, the Board authorized a new **$1.5 billion** stock repurchase program. During Q1 2022, the company repurchased **3.38 million shares** for **$501.1 million**, leaving **$1.1 billion** available under the new program[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 financial results, highlighting an 8.1% net revenue increase, 9.5% comparable brand growth, ongoing supply chain challenges, margin improvements, and a strong liquidity position - Q1 2022 net revenues increased by **8.1%** to **$1.89 billion**, with comparable brand revenue growth of **9.5%**, driven by strength in Pottery Barn and West Elm[76](index=76&type=chunk) - The company continues to face global supply chain disruptions, leading to inventory receipt delays, higher costs, and elevated backorders, which are expected to negatively impact inventory levels until the second half of fiscal 2022[75](index=75&type=chunk)[80](index=80&type=chunk) - The company ended the quarter with a strong liquidity position, holding **$324.8 million** in cash, generating **$184.5 million** in operating cash flow, and having no borrowings under its revolving line of credit[79](index=79&type=chunk) [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Q1 2022 operational results show strong top-line growth from Pottery Barn and West Elm, offset by declines in other brands, alongside improved gross margin and reduced SG&A as a percentage of revenue Comparable Brand Revenue Growth | Brand | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Pottery Barn | 14.6% | 41.3% | | West Elm | 12.8% | 50.9% | | Williams Sonoma | (2.2)% | 35.3% | | Pottery Barn Kids and Teen | (3.1)% | 27.6% | | **Total** | **9.5%** | **40.4%** | - Cost of goods sold as a percentage of net revenues decreased from **57.0%** to **56.2%** year-over-year, primarily driven by higher merchandise margins from reduced promotional activity[90](index=90&type=chunk) - Selling, general and administrative expenses as a percentage of net revenues decreased from **27.3%** to **26.7%** year-over-year, mainly due to leverage of employment and advertising costs on higher sales[92](index=92&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) As of May 1, 2022, the company maintained strong liquidity with $324.8 million in cash and full availability on its $500 million credit facility, funding capital expenditures, stock repurchases, and dividends - The company maintains a **$500 million** unsecured revolving line of credit, which can be increased by up to **$250 million**. As of May 1, 2022, there were no borrowings under the revolver[99](index=99&type=chunk)[100](index=100&type=chunk) - Net cash provided by operating activities decreased to **$184.5 million** in Q1 2022 from **$238.9 million** in Q1 2021, primarily due to an increase in merchandise inventories[103](index=103&type=chunk) - Net cash used in financing activities totaled **$637.7 million**, driven by **$501.1 million** in common stock repurchases and **$58.2 million** in dividend payments[105](index=105&type=chunk)[45](index=45&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate changes on its variable-rate credit facility and foreign currency fluctuations from international operations, partially mitigated by hedging strategies - The company's revolving credit facility has a variable interest rate, but there were no borrowings under it during the first quarter of fiscal 2022[109](index=109&type=chunk) - The majority of inventory purchases are denominated in U.S. dollars, limiting direct foreign currency transaction risk. However, a decline in the U.S. dollar could lead to increased purchasing costs from vendors[111](index=111&type=chunk) - To mitigate risks from foreign operations with functional currencies other than the U.S. dollar, the company hedges a portion of its foreign currency exposure with forward contracts[112](index=112&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) As of May 1, 2022, management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during Q1 2022 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period[113](index=113&type=chunk) - No changes occurred in internal control over financial reporting during the first quarter of fiscal 2022 that materially affected, or are reasonably likely to materially affect, these controls[114](index=114&type=chunk) [PART II. OTHER INFORMATION](index=21&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits and claims incidental to ordinary business, none of which are expected to have a material adverse effect on financial statements - The company is involved in lawsuits, claims, and proceedings in the ordinary course of business, which are not currently considered material[44](index=44&type=chunk)[116](index=116&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the company's risk factors during Q1 2022; a comprehensive description is available in the Annual Report on Form 10-K - There were no material changes to the company's risk factors during the current quarterly reporting period[117](index=117&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In March 2022, a new $1.5 billion stock repurchase program was authorized, under which the company repurchased 3.38 million shares for $501.1 million in Q1 2022, with $1.07 billion remaining - A new stock repurchase program for **$1.5 billion** was authorized in March 2022, replacing the existing program[118](index=118&type=chunk) Common Stock Repurchases in Q1 2022 | Fiscal Period | Total Number of Shares Purchased | Average Price Paid Per Share | Maximum Dollar Value Remaining Under Program | | :--- | :--- | :--- | :--- | | Jan 31 - Feb 27, 2022 | 432,841 | $161.72 | $740,751,000 | | Feb 28 - Mar 27, 2022 | 443,234 | $151.01 | $1,433,068,000 | | Mar 28 - May 1, 2022 | 2,503,656 | $145.44 | $1,068,925,000 | | **Total** | **3,379,731** | **$148.26** | **$1,068,925,000** | [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - Exhibits filed with this report include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and financial data in Inline XBRL format (101, 104)[126](index=126&type=chunk)

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 ...