Williams Sonoma Q1 Revenue Down, Net Income Declines

TL;DR

WSM Q1 revenue down to $1.45B from $1.52B YoY, net income fell to $74.1M from $100.1M. Tough quarter.

AI Summary

Williams Sonoma Inc. reported its first quarter results for the period ending April 28, 2024. The company's financial statements show a net revenue of $1.45 billion for the first quarter of fiscal 2024, a decrease from $1.52 billion in the same period last year. Net income for the quarter was $74.1 million, down from $100.1 million in the prior year's first quarter.

Why It Matters

This filing indicates a slowdown in sales for Williams Sonoma, which could signal broader consumer spending trends in the home furnishings sector.

Risk Assessment

Risk Level: medium — The decline in revenue and net income suggests potential headwinds for the company and the retail sector.

Key Numbers

• $1.45B — Net Revenue (Q1 2024, down from $1.52B in Q1 2023)
• $74.1M — Net Income (Q1 2024, down from $100.1M in Q1 2023)

Key Players & Entities

• Williams Sonoma Inc. (company) — Filer
• $1.45 billion (dollar_amount) — Q1 2024 Net Revenue
• $1.52 billion (dollar_amount) — Q1 2023 Net Revenue
• $74.1 million (dollar_amount) — Q1 2024 Net Income
• $100.1 million (dollar_amount) — Q1 2023 Net Income
• April 28, 2024 (date) — End of Reporting Period

FAQ

Filing Documents

• wsm-20240428.htm (10-Q) — 646KB
• exhibit311fy2024q1ceocert.htm (EX-31.1) — 10KB
• exhibit312fy2024q1cfocert.htm (EX-31.2) — 10KB
• exhibit321fy2024q1ceocert.htm (EX-32.1) — 5KB
• exhibit322fy2024q1cfocert.htm (EX-32.2) — 5KB
• 0001628280-24-025227.txt ( ) — 3558KB
• wsm-20240428.xsd (EX-101.SCH) — 26KB
• wsm-20240428_cal.xml (EX-101.CAL) — 47KB
• wsm-20240428_def.xml (EX-101.DEF) — 88KB
• wsm-20240428_lab.xml (EX-101.LAB) — 388KB
• wsm-20240428_pre.xml (EX-101.PRE) — 249KB
• wsm-20240428_htm.xml (XML) — 326KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION PAGE

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 12

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 18

Controls and Procedures

Item 4. Controls and Procedures 19

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 20

Risk Factors

Item 1A. Risk Factors 20

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 20

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 20

Other Information

Item 5. Other Information 20

Exhibits

Item 6. Exhibits 21 Table of Contents

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) For the Thirteen Weeks Ended (In thousands, except per share amounts) April 28, 2024 April 30, 2023 Net revenues $ 1,660,348 $ 1,755,451 Cost of goods sold 857,833 1,080,392 Gross profit 802,515 675,059 Selling, general and administrative expenses 478,687 475,582 Operating income 323,828 199,477 Interest income, net 16,053 5,498 Earnings before income taxes 339,881 204,975 Income taxes 74,215 48,444 Net earnings $ 265,666 $ 156,531 Basic earnings per share $ 4.14 $ 2.38 Diluted earnings per share $ 4.07 $ 2.35 Shares used in calculation of earnings per share: Basic 64,206 65,849 Diluted 65,315 66,696 See Notes to Condensed Consolidated Financial Statements. WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) For the Thirteen Weeks Ended (In thousands) April 28, 2024 April 30, 2023 Net earnings $ 265,666 $ 156,531 Other comprehensive income (loss): Foreign currency translation adjustments ( 1,342 ) ( 2,205 ) Change in fair value of derivative financial instruments, net of tax of $ 0 and $ 86 . 1 242 Reclassification adjustment for realized gains on derivative financial instruments, net of tax of $ 0 and $ 172 . — ( 486 ) Comprehensive income $ 264,325 $ 154,082 See Notes to Condensed Consolidated Financial Statements. 1 Table of Contents WILLIAMS-SONOMA, INC. 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,

View Full Filing

View this 10-Q filing on SEC EDGAR