Williams Sonoma Inc 8-K, filed May 25, 2022

Williams Sonoma Inc (WSM)

8-K 2022-05-25 For: 2022-05-25

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Added on April 04, 2026

About this 8-K

Williams Sonoma Inc filed this 8-K on May 25, 2022.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Delaware	001-14077	94-2203880
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


(d)						List of Exhibits:

99.1						Press Release dated May 25, 2022 titled Williams-Sonoma, Inc. announces record first quarter results; Q 1 c om parab le brand revenue grow th o f 9.5 % and 4 9 .9 % on a 2 -year basis ; G ross margin of 43.8% expanding 80bp s; D iluted EPS of $3.50 ; Reiterates full year and long -term outlo ok ; Record stock repurchases of over $500 million

104						Cover Page Interactive Data File (embedded within the Inline XBRL document).


		WILLIAMS-SONOMA, INC.

Date: May 25, 2022	By:	/s/ Julie Whalen
		Julie Whalen
		Chief Financial Officer


	For the Thirteen Weeks Ended
	May 1, 2022				May 2, 2021
(In thousands, except per share amounts)	$		% of Revenues		$		% of Revenues

Net revenues	$	1,891,227	100.0	%	$	1,749,029	100.0	%
Cost of goods sold	1,062,679		56.2		996,176		57.0
Gross profit	828,548		43.8		752,853		43.0
Selling, general and administrative expenses	505,067		26.7		477,676		27.3
Operating income	323,481		17.1		275,177		15.7
Interest (income) expense, net	(163)		—		1,872		0.1
Earnings before income taxes	323,644		17.1		273,305		15.6
Income taxes	69,531		3.7		45,503		2.6
Net earnings	$	254,113	13.4	%	$	227,802	13.0	%
Earnings per share (EPS):
Basic	$	3.59			$	3.01
Diluted	$	3.50			$	2.90
Shares used in calculation of EPS:
Basic	70,851				75,800
Diluted	72,652				78,485


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

	Net Revenues				Comparable Brand Revenue Growth (Decline)
(In millions, except percentages)	Q1 22		Q1 21		Q1 22		Q1 21
Pottery Barn	$	775	$	679	14.6	%	41.3	%
West Elm	536		477		12.8		50.9
Williams Sonoma	252		266		(2.2)		35.3
Pottery Barn Kids and Teen	227		236		(3.1)		27.6


Other2	101		91		N/A		N/A
Total	$	1,891	$	1,749	9.5	%	40.4	%
1See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 13-week basis for Q1 2022 and Q1 2021.

2Primarily consists of net revenues from Rejuvenation, our international franchise operations and Mark and Graham.


	As of
(In thousands, except per share amounts)	May 1, 2022		January 30, 2022		May 2, 2021
Assets
Current assets
Cash and cash equivalents	$	324,835	$	850,338	$	639,670
Accounts receivable, net	122,946		131,683		142,459
Merchandise inventories, net	1,396,135		1,246,372		1,087,528
Prepaid expenses	60,997		69,252		58,837
Other current assets	23,939		26,249		20,502
Total current assets	1,928,852		2,323,894		1,948,996
Property and equipment, net	942,460		920,773		875,384
Operating lease right-of-use assets	1,102,056		1,132,764		1,054,746
Deferred income taxes, net	48,737		56,585		57,499
Goodwill	85,298		85,354		85,435
Other long-term assets, net	103,310		106,250		88,180
Total assets	$	4,210,713	$	4,625,620	$	4,110,240
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	642,619	$	612,512	$	574,876
Accrued expenses	183,729		319,924		174,139
Gift card and other deferred revenue	490,821		447,770		389,640
Income taxes payable	126,270		79,554		93,282


Operating lease liabilities	211,614		217,409		208,739
Other current liabilities	88,587		94,517		78,597
Total current liabilities	1,743,640		1,771,686		1,519,273
Deferred lease incentives	15,576		16,360		19,505

Long-term operating lease liabilities	1,038,249		1,066,839		999,288
Other long-term liabilities	103,504		106,528		124,878
Total liabilities	2,900,969		2,961,413		2,662,944
Stockholders' equity
Preferred stock: $0.01 par value; 7,500 shares authorized, none issued	—		—		—
Common stock: $0.01 par value; 253,125 shares authorized; 69,219, 71,982, and 75,235 shares issued and outstanding at May 1, 2022, January 30, 2022 and May 2, 2021, respectively	693		720		753
Additional paid-in capital	532,205		600,942		556,305
Retained earnings	789,852		1,074,084		894,878
Accumulated other comprehensive loss	(12,267)		(10,828)		(3,929)
Treasury stock, at cost	(739)		(711)		(711)
Total stockholders' equity	1,309,744		1,664,207		1,447,296
Total liabilities and stockholders' equity	$	4,210,713	$	4,625,620	$	4,110,240


Retail Store Data (unaudited)

	Beginning of quarter			End of quarter	As of
	January 30, 2022	Openings	Closings	May 1, 2022	May 2, 20211
Pottery Barn	188	1	(1)	188	195
Williams Sonoma	174	2	(1)	175	195
West Elm	121	—	—	121	121
Pottery Barn Kids	52	—	—	52	57
Rejuvenation	9	—	—	9	10
Total	544	3	(2)	545	578
1Retail store data for fiscal 2021 includes stores temporarily closed due to COVID-19. All stores were reopened as of the end of fiscal 2021.


	For the Thirteen Weeks Ended
(In thousands)	May 1, 2022		May 2, 2021
Cash flows from operating activities:
Net earnings	$	254,113	$	227,802
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	50,251		47,922
Loss on disposal/impairment of assets	159		195
Amortization of deferred lease incentives	(784)		(1,108)
Non-cash lease expense	54,338		52,955
Deferred income taxes	(2,725)		(3,981)
Tax benefit related to stock-based awards	10,522		10,146
Stock-based compensation expense	28,542		26,330
Other	(17)		(223)
Changes in:
Accounts receivable	8,741		1,522
Merchandise inventories	(149,470)		(79,726)
Prepaid expenses and other assets	13,517		34,562
Accounts payable	25,559		27,910
Accrued expenses and other liabilities	(139,883)		(90,883)
Gift card and other deferred revenue	42,924		16,174
Operating lease liabilities	(58,025)		(53,633)
Income taxes payable	46,757		22,917
Net cash provided by operating activities	184,519		238,881
Cash flows from investing activities:
Purchases of property and equipment	(71,186)		(42,360)
Other	86		93
Net cash used in investing activities	(71,100)		(42,267)
Cash flows from financing activities:
Repurchases of common stock	(501,075)		(315,529)
Tax withholdings related to stock-based awards	(78,508)		(98,451)
Payment of dividends	(58,150)		(45,576)
Repayment of long-term debt	—		(300,000)



Net cash used in financing activities	(637,733)		(759,556)
Effect of exchange rates on cash and cash equivalents	(1,189)		2,275
Net decrease in cash and cash equivalents	(525,503)		(560,667)
Cash and cash equivalents at beginning of period	850,338		1,200,337
Cash and cash equivalents at end of period	$	324,835	$	639,670


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

	For the Thirteen Weeks Ended
	May 1, 2022				May 2, 2021
(In thousands, except per share data)	$		% of revenues		$		% of revenues








Selling, general and administrative expenses	$	505,067	26.7	%	$	477,676	27.3	%
Outward-related1	—				(2,839)


Non-GAAP selling, general and administrative expenses	$	505,067	26.7	%	$	474,837	27.1	%




Operating income	$	323,481	17.1	%	$	275,177	15.7	%
Outward-related1	—				2,839



Non-GAAP operating income	$	323,481	17.1	%	$	278,016	15.9	%


	$		Tax rate		$		Tax rate
Income taxes	$	69,531	21.5	%	$	45,503	16.6	%
Outward-related1	—				511





Non-GAAP income taxes	$	69,531	21.5	%	$	46,014	16.7	%



Diluted EPS	$	3.50			$	2.90
Outward-related1	—				0.03




Non-GAAP diluted EPS2	$	3.50			$	2.93
1During Q1 2021, we incurred approximately $2.8 million associated with acquisition-related compensation expense and the amortization of acquired intangibles for Outward, Inc.
2Per share amounts may not sum due to rounding to the nearest cent per diluted share.