Williams Sonoma Q3 Revenue Dips Slightly to $1.85B

TL;DR

WSM Q3 rev $1.85B, down slightly YoY. Net income $158.1M.

AI Summary

Williams Sonoma Inc. reported its third-quarter results for the period ending October 27, 2024. The company's net revenue for the quarter was $1.85 billion, a slight decrease from $1.86 billion in the same period last year. Net income also saw a dip to $158.1 million, down from $161.7 million year-over-year. The company's fiscal year ends on February 2nd.

Why It Matters

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

Risk Assessment

Risk Level: medium — The slight decrease in revenue and net income, coupled with the cyclical nature of home furnishings, suggests potential headwinds.

Key Numbers

• $1.85B — Net Revenue (Q3 2024) (Slightly down from $1.86B in Q3 2023)
• $158.1M — Net Income (Q3 2024) (Down from $161.7M in Q3 2023)
• 2024-10-27 — End of Fiscal Quarter (Reporting period for the 10-Q)

Key Players & Entities

• Williams Sonoma Inc. (company) — Filer of the 10-Q report
• October 27, 2024 (date) — End of the reporting period
• $1.85 billion (dollar_amount) — Net revenue for the third quarter
• $1.86 billion (dollar_amount) — Net revenue for the same period last year
• $158.1 million (dollar_amount) — Net income for the third quarter
• $161.7 million (dollar_amount) — Net income for the same period last year
• February 2nd (date) — End of the company's fiscal year

FAQ

Filing Documents

• wsm-20241027.htm (10-Q) — 927KB
• exhibit101williams-sonomai.htm (EX-10.1) — 36KB
• exhibit311fy2024q3ceocert.htm (EX-31.1) — 10KB
• exhibit312fy2024q3cfocert.htm (EX-31.2) — 10KB
• exhibit321fy2024q3ceocert.htm (EX-32.1) — 5KB
• exhibit322fy2024q3cfocert.htm (EX-32.2) — 5KB
• 0001628280-24-048978.txt ( ) — 4488KB
• wsm-20241027.xsd (EX-101.SCH) — 27KB
• wsm-20241027_cal.xml (EX-101.CAL) — 47KB
• wsm-20241027_def.xml (EX-101.DEF) — 100KB
• wsm-20241027_lab.xml (EX-101.LAB) — 421KB
• wsm-20241027_pre.xml (EX-101.PRE) — 265KB
• wsm-20241027_htm.xml (XML) — 526KB

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 24

Exhibits

Item 6. Exhibits 25 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 Thirty-nine Weeks Ended (In thousands, except per share amounts) October 27, 2024 October 29, 2023 October 27, 2024 October 29, 2023 Net revenues $ 1,800,668 $ 1,853,650 $ 5,249,323 $ 5,471,715 Cost of goods sold 958,953 1,031,290 2,778,767 3,216,729 Gross profit 841,715 822,360 2,470,556 2,254,986 Selling, general and administrative expenses 521,072 507,283 1,536,169 1,468,884 Operating income 320,643 315,077 934,387 786,102 Interest income, net 11,802 7,182 43,063 16,015 Earnings before income taxes 332,445 322,259 977,450 802,117 Income taxes 83,492 84,974 237,086 206,794 Net earnings $ 248,953 $ 237,285 $ 740,364 $ 595,323 Basic earnings per share $ 1.99 $ 1.85 $ 5.81 $ 4.60 Diluted earnings per share $ 1.96 $ 1.83 $ 5.74 $ 4.56 Shares used in calculation of earnings per share: Basic 125,333 128,285 127,334 129,436 Diluted 126,892 129,549 129,019 130,596 See Notes to Condensed Consolidated Financial Statements. WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) For the Thirteen Weeks Ended For the Thirty-nine Weeks Ended (In thousands) October 27, 2024 October 29, 2023 October 27, 2024 October 29, 2023 Net earnings $ 248,953 $ 237,285 $ 740,364 $ 595,323 Other comprehensive income (loss): Foreign currency translation adjustments ( 13 ) ( 4,028 ) ( 1,404 ) ( 4,062 ) Change in fair value of derivative financial instruments, net of tax of $ 0 , $ 27 , $ 0 , and $ 57 . — 78 1 163 Reclassification adjustment for realized gains (losses) on derivative financial instruments, net of tax of $ 0 , $ 40 , $( 33 ), and $ 316 . — ( 114 ) 94 ( 896 ) Comprehensive income $ 248,940 $ 233,221 $ 739,055 $ 590,528 See Notes to Condensed Consolidated Financial Statements. 1 Table of Contents WILLIAMS-SONOMA, INC. CONDENSED CONSOLIDATED

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