checkAd

     217  0 Kommentare Williams-Sonoma, Inc. announces first quarter 2024 results

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

    “We are pleased to deliver strong results in the first quarter of 2024, driven by an improving top-line trend and continued strength in our profitability. We remain committed to executing on our three key priorities in 2024 – returning to growth, elevating our world-class customer service, and driving margin,” said Laura Alber, President and Chief Executive Officer.

    FIRST QUARTER 2024 HIGHLIGHTS

    • 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% to LY GAAP basis.
    • 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 +680bps compared to LY non-GAAP basis, driven by (i) higher merchandise margins of +470bps, (ii) supply chain efficiencies of +240bps, partially offset by (iii) occupancy deleverage of -30bps. Occupancy costs of $196 million, -3.1% to LY non-GAAP basis.
    • SG&A rate of 28.8% +170bps to LY GAAP basis driven by higher advertising spend and incentive compensation. SG&A of $479 million, +0.7% to LY GAAP basis.
    • SG&A rate of 28.8% +310bps to LY non-GAAP basis driven by higher advertising spend and incentive compensation. SG&A of $479 million, +6.0% to LY non-GAAP basis.
    • Operating income of $324 million with an operating margin of 19.5%, including a benefit of +290bps from an out-of-period adjustment. Without this adjustment, operating margin of 16.6%.
    • Diluted EPS of $4.07 per share, including a benefit of $0.59 per share from an out-of-period adjustment. Without this adjustment, diluted EPS of $3.48 per share.
    • Merchandise inventories -13.1% to the first quarter LY to $1.2 billion.
    • Maintained strong liquidity position of $1.3 billion in cash and operating cash flow of $227 million, enabling the company to deliver returns to stockholders of $107 million through $63 million in dividends and $44 million in stock repurchases.

    OUT-OF-PERIOD ADJUSTMENT

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

    OUTLOOK

    • We are reiterating our guidance of annual net revenue growth in the range of -3% to +3% with comps in the range of -4.5% to +1.5% in fiscal 2024.
    • We are raising our guidance on our operating margin for fiscal 2024. We now expect an operating margin between 17.6% to 18.0%, including the impact of the out-of-period adjustment of 60bps. Without this adjustment, we expect an operating margin between 17.0% to 17.4% in fiscal 2024.
    • For fiscal 2024, we expect annual interest income to be approximately $40 million and our annual effective tax rate to be approximately 25.5%.
    • Fiscal 2024 is a 53-week year. Our financial statements will be prepared on a 53-week basis in fiscal 2024 and a 52-week basis in fiscal 2023. However, we will report comps on a 53-week versus 53-week comparable basis. All other year-over-year comparisons will be 53-weeks in fiscal 2024 versus 52-weeks in fiscal 2023. We expect the additional week in fiscal 2024 to contribute 150bps to net revenue growth and 10bps to operating margin, both of which are reflected in our guidance.
    • Over the long-term, we continue to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.

    CONFERENCE CALL AND WEBCAST INFORMATION

    Williams-Sonoma, Inc. will host a live conference call today, May 22, 2024, at 7:00 A.M. (PT). The call will be open to the general public via live webcast and can be accessed at http://ir.williams-sonomainc.com/events. A replay of the webcast will be available at http://ir.williams-sonomainc.com/events.

    SEC REGULATION GNON-GAAP INFORMATION

    This press release includes non-GAAP financial measures. Exhibit 1 provides reconciliations of these non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We have not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis as we cannot do so without unreasonable efforts due to the potential variability and limited visibility of excluded items, and for the same reasons, we are unable to address the probable significance of the unavailable information. These excluded items include exit costs associated with the closure of our West Coast manufacturing facility and the exiting of Aperture, a division of our Outward, Inc. subsidiary, as well as costs related to reduction-in-force initiatives. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

    FORWARD-LOOKING STATEMENTS

    This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, statements in the quotes of our President and Chief Executive Officer, our updated fiscal year 2024 outlook and long-term financial targets, and statements regarding our industry trends and business strategies.

    The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; the continuing impact of inflation and measures to control inflation, including changing interest rates, on consumer spending; the continuing impact of global conflicts, such as the conflicts in Ukraine and the Middle East, and shortages of various raw materials on our global supply chain, retail store operations and customer demand; labor and material shortages; the outcome of our growth initiatives; new interpretations of or changes to current accounting rules; our ability to anticipate consumer preferences and buying trends; dependence on timely introduction and customer acceptance of our merchandise; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays in store openings; competition from companies with concepts or products similar to ours; timely and effective sourcing of merchandise from our foreign and domestic vendors and delivery of merchandise through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; uncertainties in e-marketing, infrastructure and regulation; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; challenges associated with our increasing global presence; dependence on external funding sources for operating capital; disruptions in the financial markets; our ability to control employment, occupancy, supply chain, product, transportation and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and market conditions and events, including war, conflict or acts of terrorism; the impact of current and potential future tariffs and our ability to mitigate impacts; the potential for increased corporate income taxes; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended January 28, 2024 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. We have not filed our Form 10-Q for the quarter ended April 28, 2024. As a result, all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file the Form 10-Q. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

    ABOUT WILLIAMS-SONOMA, INC.

    Williams-Sonoma, Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s products, representing distinct merchandise strategies — Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow — are marketed through e-commerce websites, direct-mail catalogs and retail stores. These brands are also part of The Key Rewards, our loyalty and credit card program that offers members exclusive benefits across the Williams-Sonoma family of brands. We operate in the U.S., Puerto Rico, Canada, Australia and the United Kingdom, offer international shipping to customers worldwide, and have unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India, as well as e-commerce websites in certain locations. We are also proud to be a leader in our industry with our values-based culture and commitment to achieving our sustainability goals. Our company is Good By Design — we’ve deeply ingrained sustainability into our business. From our factories to your home, we’re united in a shared purpose to care for our people and our planet.

    For more information on our sustainability efforts, please visit: https://sustainability.williams-sonomainc.com/

    WSM-IR

    Condensed Consolidated Statements of Earnings (unaudited)

     

     

    For the Thirteen Weeks Ended

     

    April 28, 2024

     

    April 30, 2023

    (In thousands, except per share amounts)

    $

     

    % of
    Revenues

     

    $

     

    % of
    Revenues

    Net revenues

    $

    1,660,348

     

    100.0

    %

     

    $

    1,755,451

     

    100.0

    %

    Cost of goods sold

     

    857,833

     

     

    51.7

     

     

     

    1,080,392

     

     

    61.5

     

    Gross profit

     

    802,515

     

     

    48.3

     

     

     

    675,059

     

     

    38.5

     

    Selling, general and administrative expenses

     

    478,687

     

     

    28.8

     

     

     

    475,582

     

     

    27.1

     

    Operating income

     

    323,828

     

     

    19.5

     

     

     

    199,477

     

     

    11.4

     

    Interest income, net

     

    16,053

     

     

    1.0

     

     

     

    5,498

     

     

    0.3

     

    Earnings before income taxes

     

    339,881

     

     

    20.5

     

     

     

    204,975

     

     

    11.7

     

    Income taxes

     

    74,215

     

     

    4.5

     

     

     

    48,444

     

     

    2.8

     

    Net earnings

    $

    265,666

     

     

    16.0

    %

     

    $

    156,531

     

     

    8.9

    %

    Earnings per share (EPS):

     

     

     

     

     

     

     

    Basic

    $

    4.14

     

     

     

     

    $

    2.38

     

     

     

    Diluted

    $

    4.07

     

     

     

     

    $

    2.35

     

     

     

    Shares used in calculation of EPS:

     

     

     

     

     

     

     

    Basic

     

    64,206

     

     

     

     

     

    65,849

     

     

     

    Diluted

     

    65,315

     

     

     

     

     

    66,696

     

     

     

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

     

     

     

     

     

     

     

     

     

    Net Revenues

     

    Comparable Brand Revenue
    Growth (Decline)

    (In millions, except percentages)

    Q1 24

     

    Q1 23

     

    Q1 24

     

    Q1 23

    Pottery Barn

    $

    677

     

    $

    768

     

    (10.8

    )%

     

    (0.4

    )%

    West Elm

     

    430

     

     

     

    452

     

     

    (4.1

    )

     

    (15.8

    )

    Williams Sonoma

     

    238

     

     

     

    239

     

     

    0.9

     

     

    (4.4

    )

    Pottery Barn Kids and Teen

     

    222

     

     

     

    216

     

     

    2.8

     

     

    (3.3

    )

    Other2

     

    93

     

     

     

    80

     

     

    N/A

     

     

    N/A

     

    Total

    $

    1,660

     

     

    $

    1,755

     

     

    (4.9

    )%

     

    (6.0

    )%

    1 See the Company’s 10-K and 10-Q for the definition of comparable brand revenue, which is calculated on a 13-week basis, and includes business-to-business revenues.
    2 Primarily consists of net revenues from Rejuvenation, our international franchise operations, Mark and Graham and GreenRow.
     

    Condensed Consolidated Balance Sheets (unaudited)

     

     

    As of

    (In thousands, except per share amounts)

    April 28,
    2024

     

    January 28,
    2024

     

    April 30,
    2023

    Assets

     

     

     

     

     

    Current assets

     

     

     

     

     

    Cash and cash equivalents

    $

    1,254,786

     

     

    $

    1,262,007

     

     

    $

    297,291

     

    Accounts receivable, net

     

    115,215

     

     

     

    122,914

     

     

     

    109,203

     

    Merchandise inventories, net

     

    1,218,438

     

     

     

    1,246,369

     

     

     

    1,401,616

     

    Prepaid expenses

     

    62,752

     

     

     

    59,466

     

     

     

    62,723

     

    Other current assets

     

    22,787

     

     

     

    29,041

     

     

     

    27,993

     

    Total current assets

     

    2,673,978

     

     

     

    2,719,797

     

     

     

    1,898,826

     

    Property and equipment, net

     

    990,166

     

     

     

    1,013,189

     

     

     

    1,050,026

     

    Operating lease right-of-use assets

     

    1,187,777

     

     

     

    1,229,650

     

     

     

    1,258,599

     

    Deferred income taxes, net

     

    102,203

     

     

     

    110,656

     

     

     

    70,758

     

    Goodwill

     

    77,292

     

     

     

    77,306

     

     

     

    77,330

     

    Other long-term assets, net

     

    128,563

     

     

     

    122,950

     

     

     

    115,498

     

    Total assets

    $

    5,159,979

     

     

    $

    5,273,548

     

     

    $

    4,471,037

     

    Liabilities and stockholders' equity

     

     

     

     

     

    Current liabilities

     

     

     

     

     

    Accounts payable

    $

    502,136

     

     

    $

    607,877

     

     

    $

    629,561

     

    Accrued expenses

     

    154,093

     

     

     

    264,306

     

     

     

    205,175

     

    Gift card and other deferred revenue

     

    596,340

     

     

     

    573,904

     

     

     

    452,505

     

    Income taxes payable

     

    148,826

     

     

     

    96,554

     

     

     

    87,680

     

    Operating lease liabilities

     

    229,555

     

     

     

    234,517

     

     

     

    229,751

     

    Other current liabilities

     

    90,007

     

     

     

    103,157

     

     

     

    97,144

     

    Total current liabilities

     

    1,720,957

     

     

     

    1,880,315

     

     

     

    1,701,816

     

    Long-term operating lease liabilities

     

    1,112,329

     

     

     

    1,156,104

     

     

     

    1,186,231

     

    Other long-term liabilities

     

    117,135

     

     

     

    109,268

     

     

     

    116,165

     

    Total liabilities

     

    2,950,421

     

     

     

    3,145,687

     

     

     

    3,004,212

     

    Stockholders' equity

     

     

     

     

     

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

     

     

     

     

     

     

     

     

    Common stock: $0.01 par value; 253,125 shares authorized; 64,337, 64,151, and 64,222 shares issued and outstanding at April 28, 2024, January 28, 2024 and April 30, 2023, respectively

     

    644

     

     

     

    642

     

     

     

    643

     

    Additional paid-in capital

     

    521,833

     

     

     

    588,602

     

     

     

    531,940

     

    Retained earnings

     

    1,704,409

     

     

     

    1,555,595

     

     

     

    951,926

     

    Accumulated other comprehensive loss

     

    (16,893

    )

     

     

    (15,552

    )

     

     

    (16,258

    )

    Treasury stock, at cost

     

    (435

    )

     

     

    (1,426

    )

     

     

    (1,426

    )

    Total stockholders' equity

     

    2,209,558

     

     

     

    2,127,861

     

     

     

    1,466,825

     

    Total liabilities and stockholders' equity

    $

    5,159,979

     

     

    $

    5,273,548

     

     

    $

    4,471,037

     

     

     

     

     

     

     

     

    Retail Store Data
    (unaudited)

     

     

     

     

     

     

     

     

     

     

     

     

    Beginning of quarter

     

     

    End of quarter

     

    As of

     

     

     

    January 28, 2024

    Openings

    Closings

    April 28, 2024

     

    April 30, 2023

     

     

    Pottery Barn

    184

    1

    (1

    )

    184

     

    188

     

     

    Williams Sonoma

    156

     

     

     

    156

     

     

    165

     

     

     

    West Elm

    121

     

    1

     

    (1

    )

    121

     

     

    123

     

     

     

    Pottery Barn Kids

    46

     

     

    (1

    )

    45

     

     

    46

     

     

     

    Rejuvenation

    11

     

     

     

    11

     

     

    9

     

     

     

    Total

    518

     

    2

     

    (3

    )

    517

     

     

    531

     

     

     

     

     

    Condensed Consolidated Statements of Cash Flows (unaudited)

     

     

    For the Thirteen Weeks Ended

    (In thousands)

    April 28, 2024

     

    April 30, 2023

    Cash flows from operating activities:

     

     

     

    Net earnings

    $

    265,666

     

     

    $

    156,531

     

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

     

     

     

    Depreciation and amortization

     

    56,996

     

     

     

    55,602

     

    Loss on disposal/impairment of assets

     

    1,264

     

     

     

    10,374

     

    Non-cash lease expense

     

    66,821

     

     

     

    64,173

     

    Deferred income taxes

     

    (538

    )

     

     

    (1,656

    )

    Tax benefit related to stock-based awards

     

    9,347

     

     

     

    11,802

     

    Stock-based compensation expense

     

    22,975

     

     

     

    23,446

     

    Other

     

    (1,252

    )

     

     

    (822

    )

    Changes in:

     

     

     

    Accounts receivable

     

    7,666

     

     

     

    6,256

     

    Merchandise inventories

     

    27,621

     

     

     

    52,819

     

    Prepaid expenses and other assets

     

    (2,816

    )

     

     

    6,668

     

    Accounts payable

     

    (116,731

    )

     

     

    118,525

     

    Accrued expenses and other liabilities

     

    (114,258

    )

     

     

    (92,858

    )

    Gift card and other deferred revenue

     

    22,592

     

     

     

    (26,315

    )

    Operating lease liabilities

     

    (70,838

    )

     

     

    (68,497

    )

    Income taxes payable

     

    52,273

     

     

     

    26,478

     

    Net cash provided by operating activities

     

    226,788

     

     

     

    342,526

     

    Cash flows from investing activities:

     

     

     

    Purchases of property and equipment

     

    (39,513

    )

     

     

    (50,029

    )

    Other

     

    31

     

     

     

    148

     

    Net cash used in investing activities

     

    (39,482

    )

     

     

    (49,881

    )

    Cash flows from financing activities:

     

     

     

    Tax withholdings related to stock-based awards

     

    (87,008

    )

     

     

    (4,348

    )

    Payment of dividends

     

    (62,862

    )

     

     

    (58,079

    )

    Repurchases of common stock

     

    (43,781

    )

     

     

    (300,000

    )

    Net cash used in financing activities

     

    (193,651

    )

     

     

    (362,427

    )

    Effect of exchange rates on cash and cash equivalents

     

    (876

    )

     

     

    (271

    )

    Net decrease in cash and cash equivalents

     

    (7,221

    )

     

     

    (70,053

    )

    Cash and cash equivalents at beginning of period

     

    1,262,007

     

     

     

    367,344

     

    Cash and cash equivalents at end of period

    $

    1,254,786

     

     

    $

    297,291

     

    Exhibit 1

    1st Quarter GAAP to Non-GAAP Reconciliation
    (unaudited)

     

     

     

     

     

     

     

    For the Thirteen Weeks Ended

     

    April 28, 2024

     

    April 30, 2023

    (In thousands, except per share data)

    $

    % of
    revenues

     

    $

    % of
    revenues

    Occupancy costs

    $

    196,155

    11.8

    %

     

    $

    202,612

     

    11.5

    %

    Exit Costs1

     

     

     

     

     

    (239

    )

     

    Non-GAAP occupancy costs

    $

    196,155

     

    11.8

    %

     

    $

    202,373

     

    11.5

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Gross profit

    $

    802,515

     

    48.3

    %

     

    $

    675,059

     

    38.5

    %

    Exit Costs1

     

     

     

     

     

    2,141

     

     

    Non-GAAP gross profit

    $

    802,515

     

    48.3

    %

     

    $

    677,200

     

    38.6

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Selling, general and administrative expenses

    $

    478,687

     

    28.8

    %

     

    $

    475,582

     

    27.1

    %

    Exit Costs1

     

     

     

     

     

    (15,790

    )

     

    Reduction-in-force Initiatives2

     

     

     

     

     

    (8,316

    )

     

    Non-GAAP selling, general and administrative expenses

    $

    478,687

     

    28.8

    %

     

    $

    451,476

     

    25.7

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Operating income

    $

    323,828

     

    19.5

    %

     

    $

    199,477

     

    11.4

    %

    Exit Costs1

     

     

     

     

     

    17,931

     

     

    Reduction-in-force Initiatives2

     

     

     

     

     

    8,316

     

     

    Non-GAAP operating income

    $

    323,828

     

    19.5

    %

     

    $

    225,724

     

    12.9

    %

     

     

     

     

     

     

     

    $

    Tax rate

     

    $

    Tax rate

    Income taxes

    $

    74,215

     

    21.8

    %

     

    $

    48,444

     

    23.6

    %

    Exit Costs1

     

     

     

     

     

    4,690

     

     

    Reduction-in-force Initiatives2

     

     

     

     

     

    2,174

     

     

    Non-GAAP income taxes

    $

    74,215

     

    21.8

    %

     

    $

    55,308

     

    23.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

    Diluted EPS

    $

    4.07

     

     

     

    $

    2.35

     

     

    Exit Costs1

     

     

     

     

     

    0.20

     

     

    Reduction-in-force Initiatives2

     

     

     

     

     

    0.09

     

     

    Non-GAAP diluted EPS3

    $

    4.07

     

     

     

    $

    2.64

     

     

    1 During Q1 2023, we incurred exit costs of $17.9 million, including $9.3 million associated with the closure of our West Coast manufacturing facility and $8.6 million associated with the exiting of Aperture, a division of our Outward, Inc. subsidiary.
    2 During Q1 2023, we incurred costs related to reduction-in-force initiatives of $8.3 million primarily in our corporate functions.
    3 Per share amounts may not sum due to rounding to the nearest cent per diluted share.
     

    SEC Regulation G – Non-GAAP Information

    These tables include non-GAAP occupancy costs, gross profit, gross margin, selling, general and administrative expense, operating income, operating margin, income taxes, effective tax rate and diluted EPS. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.


    The Williams-Sonoma Stock at the time of publication of the news with a raise of +0,55 % to 291,2EUR on Tradegate stock exchange (22. Mai 2024, 13:56 Uhr).


    Business Wire (engl.)
    0 Follower
    Autor folgen

    Weitere Artikel des Autors


    Williams-Sonoma, Inc. announces first quarter 2024 results Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the first quarter ended April 28, 2024 versus the first quarter ended April 30, 2023. “We are pleased to deliver strong results in the first quarter of 2024, driven by an …