WSM
$48.62
Williams-Sonoma
$.66
1.38%
Earnings Details
4th Quarter January 2017
Wednesday, March 15, 2017 4:15:01 PM
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Summary

Williams-Sonoma Beats

Williams-Sonoma (WSM) reported 4th Quarter January 2017 earnings of $1.55 per share on revenue of $1.6 billion. The consensus earnings estimate was $1.50 per share on revenue of $1.6 billion. The Earnings Whisper number was $1.54 per share. Revenue fell 0.3% compared to the same quarter a year ago.

The company said it expects first quarter earnings of $0.45 to $0.50 per share on revenue of $1.085 billion to $1.12 billion and fiscal 2018 earnings of $3.45 to $3.65 per share on revenue of $5.165 billion to $5.265 billion. The current consensus earnings estimate is $0.54 per share on revenue of $1.13 billion for the quarter ending April 30, 2017 and $3.57 per share on revenue of $5.29 billion for the year ending January 31, 2018.

Williams-Sonoma Inc is a multi-channel specialty retailer of home furnishings in the United States and Canada.

Results
Reported Earnings
$1.55
Earnings Whisper
$1.54
Consensus Estimate
$1.50
Reported Revenue
$1.58 Bil
Revenue Estimate
$1.61 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Williams-Sonoma, Inc. announces fourth quarter and fiscal year 2016 resultsQ4 GAAP EPS of $1.63 and non-GAAP EPS of $1.55Q4 gross margin expands 100bps; merchandise inventories decrease 0.1%

Williams-Sonoma, Inc. (WSM) today announced operating results for the fourth fiscal quarter ("Q4 16") and fiscal year 2016 ("FY 16") ended January 29, 2017 versus the fourth fiscal quarter ("Q4 15") and fiscal year 2015 ("FY 15") ended January 31, 2016.

4th QUARTER 2016 RESULTS

-
Q4 16 net revenues decreased 0.3% to $1.582 billion versus $1.586
billion in Q4 15 with comparable brand revenue decreasing 0.9%.
-
Q4 16 operating margin was 13.6% versus 14.0% in Q4 15.
-
Q4 16 diluted earnings per share ("EPS") was $1.63 versus $1.55 in
Q4 15. Excluding the net benefit of approximately $0.08 per diluted
share from a one-time favorable tax adjustment, non-GAAP EPS was
$1.55 in Q4 16. See Exhibit 1 for a reconciliation of GAAP to
non-GAAP EPS.
-
Cash returned to stockholders totaled $69 million, comprising $36
million in stock repurchases and $33 million in dividends.

FISCAL YEAR 2016 RESULTS

-
FY 16 net revenues grew 2.2% to $5.084 billion versus $4.976 billion
in FY 15 with comparable brand revenue growth of 0.7%.
-
FY 16 operating margin was 9.3% versus 9.8% in FY 15. Excluding
severance-related reorganization charges, non-GAAP operating margin
was 9.6% in FY 16. See Exhibit 1 for a reconciliation of GAAP to
non-GAAP operating margin.
-
FY 16 diluted earnings per share ("EPS") was $3.41 versus $3.37 in
FY 15. Excluding severance-related reorganization charges of
approximately $0.10 per diluted share and the net benefit of
approximately $0.08 per diluted share from a one-time favorable tax
adjustment, non-GAAP EPS was $3.43 in FY 16. See Exhibit 1.
-
Cash returned to stockholders totaled $285 million, comprising $151
million in stock repurchases and $134 million in dividends.

Laura Alber, President and Chief Executive Officer, commented: "In 2016, we delivered revenues of over $5 billion, which included another year of double-digit growth across West Elm, our newer businesses Rejuvenation and Mark and Graham, and our company-owned global operations. Additionally, from an operational perspective, we executed one of our best holiday seasons and delivered an improved customer experience which is at the center of everything we do."

Alber continued, "Entering 2017, we will continue to improve performance and increase our competitive advantage, with a focus on innovation in e-commerce, our products and service, and the retail experience. We will also remain relentlessly focused on operational excellence throughout our supply chain, driving strategies that will improve our customers’ experience across all of our brands. We are optimistic about the future and believe we have the infrastructure, strategies and talent in place to drive long-term profitable growth for our shareholders."

4th QUARTER 2016 RESULTS

Net revenues decreased 0.3% to $1.582 billion in Q4 16 from $1.586 billion in Q4 15.

Comparable brand revenue in Q4 16 decreased 0.9% compared to 0.8% growth in Q4 15 as shown in the table below:

4th Quarter Comparable Brand Revenue
Growth by Concept*
Q4 16
Q4 15
Pottery Barn
(4.1%)
(2.0%)
Williams Sonoma
1.4%
0.9%
West Elm
6.5%
12.8%
Pottery Barn Kids
(4.9%)
0.1%
PBteen
(8.1%)
(12.2%)
Total
(0.9%)
0.8%
==================== ==================== ==================== ==================== ==================== ==================== ====== ==================== ==================== ==================== ==================== ==================== =======
* See the Company’s 10-K and 10-Q filings for the definition of
comparable brand revenue.

E-commerce net revenues in Q4 16 increased 2.2% to $809 million from $792 million in Q4 15. E-commerce net revenues generated 51.1% of total company net revenues in Q4 16 and 49.9% of total company net revenues in Q4 15.

Retail net revenues in Q4 16 decreased 2.7% to $773 million from $794 million in Q4 15.

Operating margin in Q4 16 was 13.6% compared to 14.0% in Q4 15:

-
Gross margin was 39.3% in Q4 16 versus 38.3% in Q4 15.
-
Selling, general and administrative ("SG&A") expenses were $406
million, or 25.7% of net revenues in Q4 16, versus $385 million, or
24.3% of net revenues in Q4 15.

The effective income tax rate in Q4 16 was 33.0% versus 36.6% in Q4 15, reflecting a one-time favorable tax adjustment. Excluding this adjustment, the effective tax rate in Q4 16 was 36.5%. See Exhibit 1 for a reconciliation of GAAP to non-GAAP effective income tax rate.

EPS in Q4 16 was $1.63 versus $1.55 in Q4 15. Excluding the tax adjustment, non-GAAP EPS was $1.55 in Q4 16. See Exhibit 1.

FISCAL YEAR 2016 RESULTS

Net revenues increased 2.2% to $5.084 billion in FY 16 from $4.976 billion in FY 15.

Comparable brand revenue in FY 16 increased 0.7% on top of 3.7% in FY 15 as shown in the table below:

Fiscal Year Net Revenues and Comparable Brand Revenue Growth by
Concept*
Net Revenues (Millions)
Comparable Brand
Revenue Growth
FY 16
FY 15
FY 16
FY 15
Pottery Barn
$2,024
$2,074
(3.5%)
1.9%
Williams Sonoma
1,002
994
1.3%
1.1%
West Elm
972
821
12.8%
14.8%
Pottery Barn Kids
635
640
(1.4%)
2.2%
PBteen
238
254
(6.2%)
(2.7%)
Other
213
193
N/A
N/A
Total
$5,084
$4,976
0.7%
3.7%
==================== ==================== ==================== ==================== ====== ==================== ==================== ====== ==================== ==================== ==================== ==================== ====== ==================== ==================== ======
* See the Company’s 10-K and 10-Q filings for the definition of
comparable brand revenue.

E-commerce net revenues in FY 16 increased 4.4% to $2.634 billion from $2.523 billion in FY 15. E-commerce net revenues generated 51.8% of total company net revenues in FY 16 and 50.7% of total company net revenues in FY 15.

Retail net revenues in FY 16 decreased 0.1% to $2.450 billion from $2.454 billion in FY 15.

Operating margin in FY 16 was 9.3% compared to 9.8% in FY 15. Excluding severance-related reorganization charges, non-GAAP operating margin was 9.6% in FY 16:

-
Gross margin was 37.0% in FY 16 versus 37.1% in FY 15.
-
Selling, general and administrative ("SG&A") expenses were $1.411
billion, or 27.7% of net revenues in FY 16, versus $1.356 billion,
or 27.2% of net revenues in FY 15. Excluding severance-related
reorganization charges of approximately $14 million, non-GAAP SG&A
expenses were $1.396 billion, or 27.5% of net revenues, in FY 16.
See Exhibit 1.

The effective income tax rate in FY 16 was 35.3% versus 36.5% in FY 15, reflecting a one-time favorable tax adjustment. Excluding this adjustment, the effective tax rate in FY 16 was 36.9%. See Exhibit 1.

EPS in FY 16 was $3.41 versus $3.37 in FY 15. Excluding severance-related reorganization charges and the tax adjustment, non-GAAP EPS was $3.43 in FY 16. See Exhibit 1.

Merchandise inventories at the end of FY 16 were $978 million, down 0.1% compared to FY 15.

STOCK REPURCHASE PROGRAM AND DIVIDEND INCREASE

During FY 16, we repurchased 2.9 million shares of common stock at an average cost of $52.68 per share and a total cost of approximately $151 million. As of January 29, 2017, there was approximately $411 million remaining under our current stock repurchase program. As announced in a separate release today, our Board of Directors authorized a $0.02, or 5%, increase in our quarterly cash dividend to $0.39 per share.

FISCAL YEAR 2017 FINANCIAL GUIDANCE

1st Quarter 2017 Financial Guidance
Total Net Revenues (millions)
$1,085 - $1,120
Comparable Brand Revenue Growth/(Decrease)
(1%) - 2%
Diluted EPS
$0.45 - $0.50
Fiscal Year 2017 Financial Guidance
Total Net Revenues (millions)
$5,165 - $5,265
Comparable Brand Revenue Growth
1% - 3%
Operating Margin
9.4% - 9.6%
Diluted EPS
$3.45 - $3.65
Income Tax Rate
36.5% - 37.5%
Capital Spending (millions)
$200 - $220
Depreciation and Amortization (millions)
$185 - $195
Store Opening and Closing Guidance by Retail Concept*
FY 2016 ACT
FY 2017 GUID
Total
New
Close
End
Williams Sonoma
234
3
(6)
231
Pottery Barn
201
6
(3)
204
West Elm
98
10
(3)
105
Pottery Barn Kids
89
-
(4)
85
Rejuvenation
7
2
-
9
Total
629
21
(16)
634
* Included in the FY 16 store count are 19 stores in Australia and
one store in the UK.

CONFERENCE CALL AND WEBCAST INFORMATION

Williams-Sonoma, Inc. will host a live conference call today, March 15, 2017, at 2:00 P.M. (PT). The call, hosted by Laura Alber, President and Chief Executive Officer, 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 G -- NON-GAAP INFORMATION

This press release includes non-GAAP SG&A, operating income, operating margin, income taxes, effective tax rate and diluted EPS. These non-GAAP financial measures exclude the impact of severance-related reorganization charges in Q1 16 and Q3 16 and a one-time favorable tax adjustment in Q4 16. We have reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in the text of this release and in Exhibit 1. 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 and FY 16 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 measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

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 statements relating to: our ability to continue to improve performance and increase our competitive advantage; our focus on operational excellence; our ability to improve customers’ experience; our optimism about the future; our ability to drive long-term profitable growth; our future financial guidance, including Q1 17 and FY 2017 guidance; our stock repurchase program; and our proposed store openings and closures.

The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: accounting adjustments as we close our books for Q4 16 and as audited year-end financial statements are prepared; continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; 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; successful catalog management, including timing, sizing and merchandising; 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 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; 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 31, 2016 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. 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 a specialty retailer of high-quality products for the home. These products, representing eight distinct merchandise strategies - Williams Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams Sonoma Home, Rejuvenation, and Mark and Graham - are marketed through e-commerce websites, direct mail catalogs and retail stores. Williams-Sonoma, Inc. currently operates in the United States, Canada, Australia and the United Kingdom, offers international shipping to customers worldwide, and has unaffiliated franchisees that operate stores in the Middle East and the Philippines and stores and e-commerce websites in Mexico.

Williams-Sonoma, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
Thirteen weeks ended January 29, 2017 and January 31, 2016
(Dollars and shares in thousands, except per share amounts)
4th Quarter
2016
2015
$
% of
$
% of
Revenues
Revenues
E-commerce net revenues
$
808,942
51.1 %
$
791,903
49.9 %
Retail net revenues
772,639
48.9
794,401
50.1
Net revenues
1,581,581
100.0
1,586,304
100.0
Cost of goods sold
959,550
60.7
978,744
61.7
Gross profit
622,031
39.3
607,560
38.3
Selling, general and administrative expenses
406,212
25.7
384,880
24.3
Operating income
215,819
13.6
222,680
14.0
Interest (income) expense, net
101
-
2
-
Earnings before income taxes
215,718
13.6
222,678
14.0
Income taxes
71,091
4.5
81,550
5.1
Net earnings
$
144,627
9.1 %
$
141,128
8.9 %
Earnings per share (EPS):
Basic
$1.65
$1.57
Diluted
$1.63
$1.55
Shares used in calculation of EPS:
Basic
87,669
89,760
Diluted
88,633
90,988
Williams-Sonoma, Inc.
Condensed Consolidated Statements of Earnings (unaudited)
Fifty-two weeks ended January 29, 2017 and January 31, 2016
(Dollars and shares in thousands, except per share amounts)
Fiscal Year
2016
2015
$
% of
$
% of
Revenues
Revenues
E-commerce net revenues
$ 2,633,602
51.8 %
$ 2,522,580
50.7 %
Retail net revenues
2,450,210
48.2
2,453,510
49.3
Net revenues
5,083,812
100.0
4,976,090
100.0
Cost of goods sold
3,200,502
63.0
3,131,876
62.9
Gross profit
1,883,310
37.0
1,844,214
37.1
Selling, general and administrative expenses
1,410,711
27.7
1,355,580
27.2
Operating income
472,599
9.3
488,634
9.8
Interest (income) expense, net
688
-
627
-
Earnings before income taxes
471,911
9.3
488,007
9.8
Income taxes
166,524
3.3
177,939
3.6
Net earnings
$
305,387
6.0 %
$
310,068
6.2 %
Earnings per share (EPS):
Basic
$3.45
$3.42
Diluted
$3.41
$3.37
Shares used in calculation of EPS:
Basic
88,594
90,787
Diluted
89,462
92,102
Williams-Sonoma, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(Dollars and shares in thousands, except per share amounts)
Jan. 29, 2017
Jan. 31, 2016
Assets
Current assets
Cash and cash equivalents
$
213,713
$
193,647
Accounts receivable, net
88,803
79,304
Merchandise inventories, net
977,505
978,138
Prepaid catalog expenses
23,625
28,919
Prepaid expenses
52,882
44,654
Other assets
10,652
11,438
Total current assets
1,367,180
1,336,100
Property and equipment, net
923,283
886,813
Deferred income taxes, net
135,238
141,784
Other assets, net
51,178
52,730
Total assets
$ 2,476,879
$ 2,417,427
Liabilities and stockholders’ equity
Current liabilities
Accounts payable
$
453,710
$
447,412
Accrued salaries, benefits and other
130,187
127,122
Customer deposits
294,276
296,827
Income taxes payable
23,245
67,052
Other liabilities
59,838
58,014
Total current liabilities
961,256
996,427
Deferred rent and lease incentives
196,188
173,061
Other long-term obligations
71,215
49,713
Total liabilities
1,228,659
1,219,201
Stockholders’ equity
Preferred stock: $.01 par value; 7,500 shares authorized;
-
-
none
issued
Common stock: $.01 par value; 253,125 shares authorized;
873
896
87,325
and 89,563 shares issued and outstanding
at January 29,
2017 and January 31, 2016, respectively
Additional paid-in capital
556,928
541,307
Retained earnings
701,702
668,545
Accumulated other comprehensive loss
(9,903 )
(10,616 )
Treasury stock, at cost
(1,380 )
(1,906 )
Total stockholders’ equity
1,248,220
1,198,226
Total liabilities and stockholders’ equity
$ 2,476,879
$ 2,417,427
Williams-Sonoma, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
Fifty-two weeks ended January 29, 2017 and January 31, 2016
(Dollars in thousands)
Year-to-Date
2016
2015
Cash flows from operating activities
Net earnings
$
305,387
$
310,068
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Depreciation and amortization
173,195
167,760
Loss on disposal/impairment of assets
3,806
4,339
Amortization of deferred lease incentives
(25,212 )
(24,721 )
Deferred income taxes
7,114
(7,436 )
Tax benefit related to stock-based awards
3,230
14,592
Excess tax benefit related to stock-based awards
(4,894 )
(14,494 )
Stock-based compensation expense
51,116
41,357
Other
(423 )
149
Changes in:
Accounts receivable
(9,794 )
(12,849 )
Merchandise inventories
4,493
(92,647 )
Prepaid catalog expenses
5,294
5,022
Prepaid expenses and other assets
(6,367 )
(9,245 )
Accounts payable
3,169
60,507
Accrued salaries, benefits and other liabilities
25,876
(135 )
Customer deposits
(3,037 )
35,877
Deferred rent and lease incentives
35,559
31,334
Income taxes payable
(43,803 )
34,548
Net cash provided by operating activities
524,709
544,026
Cash flows from investing activities:
Purchases of property and equipment
(197,414 )
(202,935 )
Other
439
769
Net cash used in investing activities
(196,975 )
(202,166 )
Cash flows from financing activities:
Repurchase of common stock
(151,272 )
(224,995 )
Payment of dividends
(133,539 )
(127,636 )
Borrowings under revolving line of credit
125,000
200,000
Repayments of borrowings under revolving line of credit
(125,000 )
(200,000 )
Tax withholdings related to stock-based awards
(27,062 )
(31,790 )
Excess tax benefit related to stock-based awards
4,894
14,494
Proceeds related to stock-based awards
1,532
2,647
Repayment of long-term obligations
-
(1,968 )
Other
(359 )
(135 )
Net cash used in financing activities
(305,806 )
(369,383 )
Effect of exchange rates on cash and cash equivalents
(1,862 )
(1,757 )
Net increase (decrease) in cash and cash equivalents
20,066
(29,280 )
Cash and cash equivalents at beginning of period
193,647
222,927
Cash and cash equivalents at end of period
$
213,713
$
193,647
Exhibit 1
Reconciliation of 4th Quarter and
Fiscal Year Actual GAAP to Non-GAAP Operating Margin By Segment*
($ in thousands)
E-commerce
Retail
Unallocated
Total
Q4 16
Q4 15
Q4 16
Q4 15
Q4 16
Q4 15
Q4 16
Q4 15
Net Revenues
$
808,942
$
791,903
$
772,639
$
794,401
$
-
$
-
$ 1,581,581
$ 1,586,304
Operating Income/(Expense)
191,845
174,218
121,507
121,446
(97,533 )
(72,984 )
215,819
222,680
Operating Margin
23.7 %
22.0 %
15.7 %
15.3 %
(6.2 %)
(4.6 %)
13.6 %
14.0 %
E-commerce
Retail
Unallocated
Total
FY 16
FY 15
FY 16
FY 15
FY 16
FY 15
FY 16
FY 15
Net Revenues
$ 2,633,602
$ 2,522,580
$ 2,450,210
$ 2,453,510
$
-
$
-
$ 5,083,812
$ 4,976,090
GAAP Operating Income/(Expense)
606,286
562,081
231,929
239,288
(365,616 )
(312,735 )
472,599
488,634
GAAP Operating Margin
23.0 %
22.3 %
9.5 %
9.8 %
(7.2 %)
(6.3 %)
9.3 %
9.8 %
Severance-related Reorganization
-
-
-
-
14,406
-
14,406
-
Charges(1)
Non-GAAP Operating Income/
$
606,286
$
562,081
$
231,929
$
239,288
$ (351,210 )
$ (312,735 )
$
487,005
$
488,634
(Expense) Excluding Severance-
related
Reorganization Charges(3)
Non-GAAP Operating Margin(3)
23.0 %
22.3 %
9.5 %
9.8 %
(6.9 %)
(6.3 %)
9.6 %
9.8 %
*
See the Company’s 10-K and 10-Q filings for additional
information on segment reporting and the definition of Operating
Income/(Expense) and Operating Margin.
Reconciliation of 4th Quarter and
Fiscal Year Actual GAAP to Non-GAAP Effective Tax Rate
($ in thousands)
Q4 16
Q4 15
FY 16
FY 15
Earnings Before Income Taxes
$ 215,718
$ 222,678
$ 471,911
$
488,007
GAAP Income Taxes
71,091
81,550
166,524
177,939
GAAP Effective Tax Rate
33.0 %
36.6 %
35.3 %
36.5 %
================================================= ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ======= ====================
One-time Favorable Tax Adjustment(2)
7,681
-
7,681
-
Non-GAAP Income Taxes Excluding Tax Adjustment(3)
$
78,772
$
81,550
$ 174,205
$
177,939
Non-GAAP Effective Tax Rate(3)
36.5 %
36.6 %
36.9 %
36.5 %
================================================= ==================== ==================== ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ======= ==================== ==================== ==================== ==================== ==================== ======= ====================
Reconciliation of Quarterly and Fiscal Year GAAP to Non-GAAP
Diluted Earnings Per Share**
(Totals rounded to the nearest cent per diluted share)
Q1 16
Q2 16
Q3 16
Q4 16
FY 16
ACT
ACT
ACT
ACT
ACT
2016 GAAP Diluted EPS
$0.44
$0.58
$0.78
$1.63
$3.41
Impact of Severance-related Reorganization Charges(1)
$0.09
-
$0.01
-
$0.10
One-time Favorable Tax Adjustment(2)
-
-
-
($0.08)
($0.08)
===================================================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====================
2016 Non-GAAP Diluted EPS Excluding Severance-
$0.53
$0.58
$0.79
$1.55
$3.43
related
Reorganization Charges and Tax
Adjustment(3)
===================================================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====================
Q1 15
Q2 15
Q3 15
Q4 15
FY 15
ACT
ACT
ACT
ACT
ACT
2015 GAAP Diluted EPS
$0.48
$0.58
$0.77
$1.55
$3.37
===================================================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ==================== ====================

** Due to the differences between the quarterly and year-to-date weighted average share count calculations and rounding to the nearest cent per diluted share, totals may not equal the sum of the line items and fiscal year diluted EPS may not equal the sum of the quarters.

Notes:
(1)
Impact of Severance-related Reorganization Charges - During Q1 16
and Q3 16, we incurred severance-related reorganization charges
due to headcount reduction primarily in our corporate functions
totaling approximately $14 million, or $0.10 per diluted share.
These charges were recorded as SG&A expense within the unallocated
segment.
(2)
Impact of One-time Favorable Tax Adjustment - During Q4 16 we
incurred a benefit of approximately $8M, or $0.08 per diluted
share, related to tax adjustments associated with intercompany
transactions.
(3)
SEC Regulation G - Non-GAAP Information - These tables include
non-GAAP 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 and FY 16 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.
Store Statistics
Store Count
Avg. Leased Square Footage
Per Store
Oct. 30, 2016
Openings
Closings
Jan. 29, 2017
Jan. 31, 2016
Jan. 29, 2017
Jan. 31, 2016
Williams Sonoma
241
2
(9)
234
239
6,600
6,600
Pottery Barn
202
1
(2)
201
197
13,900
13,800
Pottery Barn Kids
89
1
(1)
89
89
7,400
7,500
West Elm
97
1
-
98
87
13,300
13,200
Rejuvenation
6
1
-
7
6
9,100
9,000
Total
635
6
(12)
629
618
10,100
10,000
Oct. 30, 2016
Jan. 29, 2017
Jan. 31, 2016
Total store selling square footage
3,966,000
3,951,000
3,827,000
Total store leased square footage
6,381,000
6,359,000
6,163,000

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SOURCE: Williams-Sonoma, Inc.

WILLIAMS-SONOMA, INC.
Julie P. Whalen
EVP, Chief Financial Officer
(415) 616-8524
-or-
Beth Potillo-Miller
SVP, Finance & Corporate Treasurer
Investor Relations
(415) 616-8643