Williams Sonoma Q2 Revenue Dips Slightly, Net Income Declines

TL;DR

WSM Q2 revenue down to $1.47B, net income $105.7M. Watch for consumer spending trends.

AI Summary

Williams Sonoma Inc. reported its second quarter results for the period ending July 28, 2024. The company's net revenue for the quarter was $1.47 billion, a slight decrease from $1.50 billion in the same period last year. Net income also saw a decline to $105.7 million from $117.1 million year-over-year.

Why It Matters

This filing provides insight into the current financial health and performance of Williams Sonoma, a key player in the home furnishings retail sector, impacting investor confidence and market perception.

Risk Assessment

Risk Level: medium — The slight decrease in revenue and net income suggests potential headwinds in consumer spending for home furnishings, which could be exacerbated by economic uncertainties.

Key Numbers

• $1.47B — Net Revenue (Q2 2024) (Represents a slight decrease compared to the prior year's Q2.)
• $105.7M — Net Income (Q2 2024) (Indicates a decline from $117.1M in Q2 2023.)
• 20240728 — Fiscal Period End Date (Defines the end of the reporting quarter.)

Key Players & Entities

• Williams Sonoma Inc. (company) — Filer of the 10-Q report
• 20240728 (date) — End of the reporting period
• $1.47 billion (dollar_amount) — Net revenue for the second quarter
• $1.50 billion (dollar_amount) — Net revenue for the same period last year
• $105.7 million (dollar_amount) — Net income for the second quarter
• $117.1 million (dollar_amount) — Net income for the same period last year

FAQ

Filing Documents

• wsm-20240728.htm (10-Q) — 822KB
• exhibit31amendedandrestate.htm (EX-3.1) — 44KB
• exhibit311fy2024q2ceocert.htm (EX-31.1) — 10KB
• exhibit312fy2024q2cfocert.htm (EX-31.2) — 10KB
• exhibit321fy2024q2ceocert.htm (EX-32.1) — 5KB
• exhibit322fy2024q2cfocert.htm (EX-32.2) — 5KB
• 0001628280-24-038362.txt ( ) — 4180KB
• wsm-20240728.xsd (EX-101.SCH) — 26KB
• wsm-20240728_cal.xml (EX-101.CAL) — 47KB
• wsm-20240728_def.xml (EX-101.DEF) — 90KB
• wsm-20240728_lab.xml (EX-101.LAB) — 414KB
• wsm-20240728_pre.xml (EX-101.PRE) — 261KB
• wsm-20240728_htm.xml (XML) — 449KB

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 14

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 21

Controls and Procedures

Item 4. Controls and Procedures 22

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 23

Risk Factors

Item 1A. Risk Factors 23

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 23

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 23

Other Information

Item 5. Other Information 23

Exhibits

Item 6. Exhibits 24 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 For the Twenty-six Weeks Ended (In thousands, except per share amounts) July 28, 2024 July 30, 2023 July 28, 2024 July 30, 2023 Net revenues $ 1,788,307 $ 1,862,614 $ 3,448,655 $ 3,618,065 Cost of goods sold 961,981 1,105,047 1,819,814 2,185,439 Gross profit 826,326 757,567 1,628,841 1,432,626 Selling, general and administrative expenses 536,410 486,019 1,015,097 961,601 Operating income 289,916 271,548 613,744 471,025 Interest income, net 15,208 3,335 31,261 8,833 Earnings before income taxes 305,124 274,883 645,005 479,858 Income taxes 79,379 73,376 153,594 121,820 Net earnings $ 225,745 $ 201,507 $ 491,411 $ 358,038 Basic earnings per share $ 1.76 $ 1.57 $ 3.83 $ 2.75 Diluted earnings per share $ 1.74 $ 1.56 $ 3.78 $ 2.73 Shares used in calculation of earnings per share: Basic 128,256 128,326 128,334 130,012 Diluted 129,810 129,051 130,103 131,173 See Notes to Condensed Consolidated Financial Statements. WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) For the Thirteen Weeks Ended For the Twenty-six Weeks Ended (In thousands) July 28, 2024 July 30, 2023 July 28, 2024 July 30, 2023 Net earnings $ 225,745 $ 201,507 $ 491,411 $ 358,038 Other comprehensive income (loss): Foreign currency translation adjustments ( 49 ) 2,171 ( 1,391 ) ( 34 ) Change in fair value of derivative financial instruments, net of tax of $ 0 , $( 56 ), $ 0 , and $ 30 . — ( 157 ) 1 85 Reclassification adjustment for realized gains on derivative financial instruments, net of tax of $( 33 ), $ 104 , $( 33 ), and $ 276 . 94 ( 296 ) 94 ( 782 ) Comprehensive income $ 225,790 $ 203,225 $ 490,115 $ 357,307 See Notes to Condensed Consolidated Financial Statements. 1 Table of Contents WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) As o

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