Williams-sonoma, Inc. · NYSE:WSM
Williams-sonoma — Q4 2024 Earnings Presentation
41 slides from Williams-sonoma's earnings presentation, Mar 19, 2025
Slide 1: 2025 Investor Presentation
— 2025 — Investor Presentation
Slide 2: Forward-Looking Statements
2 0 2 5 I N V E S T O R P R E S E N TAT I O N OVERVIEW POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M FORWARD-LOOKING STATEMENTS Certain statements included
Slide 3: Vision and Mission
2 0 2 5 I N V E S T O R P R E S E N TAT I O N 3 POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M OVERVIEW Vision Mission our customers work, stay, and play. To
Slide 4: WSM Highlights
2 0 2 5 I N V E S T O R P R E S E N TAT I O N OVERVIEW WSM Highlights OUR REVENUES KEY FINANCIAL MEASURES $7.7B 54.0% 14% EPS GROWTH * 2024 REVENUE NON-GAAP ROIC since 2021 POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW W I L L I A M S S O N O M A | W I L L I A M S S O N
Slide 5: Market Opportunity and Shift to Ecommerce
2 0 2 5 I N V E S T O R P R E S E N TAT I O N OVERVIEW Expansive Shift to Market Opportunity Ecommerce We operate in a highly fragmented market The home furnishings industry trails other industries where no one owns more than 5%.* in ecommerce penetration.* $80B $7.7B US B2B POTTERY BARN | POTTERY B
Slide 6: Leading Specialty Home Furnishings
2 0 2 5 I N V E S T O R P R E S E N TAT I O N OVERVIEW Leading Specialty Home Furnishings We are the largest omni-channel player in the specialty home furnishings category. We generate more revenue than any of our competitors. Our size and scale are a competitive advantage in a fragmented industry.
Slide 7: Our Competitive Advantage
2 0 2 5 I N V E S T O R P R E S E N TAT I O N OVERVIEW Our Competitive Advantage K E Y D I F F E R E N T I AT O R S In-house Design • Digital First, Not Digital Only • Our Values POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW W I L L I A M S S O N O M A | W I L L I A M S
Slide 8: Why We're Confident
2 0 2 5 I N V E S T O R P R E S E N TAT I O N OVERVIEW Why We’re Confident LARGE & + MACRO + A FOCUS + OUR KEY + OUR GROWTH = ABILITY TO FRAGMENTED SHIFTS ON HOME DIFFERENTIATORS DRIVERS TAK E SH AR E POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW INDUSTRY & GROW W I L L
Slide 9: Key Differentiators
2 0 2 5 I N V E S T O R P R E S E N TAT I O N 9 POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M K E Y D I F F E R E N T I AT O R S 1 DESIGN IN-HOUSE 2 O N LY
Slide 10: In-House Design
2 0 2 5 I N V E S T O R P R E S E N TAT I O N K E Y D I F F E R E N T I AT O R S In-House Design We design, create, and distribute our own products. We work closely with our trusted vendors to bring high-quality, sustainable products to market. Given our strong value equation and proprietary product
Slide 11: Portfolio of 9 Distinct Brands
2 0 2 5 I N V E S T O R P R E S E N TAT I O N 11 POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M K E Y D I F F E R E N T I AT O R S Brands of the home and bey
Slide 12: Our Aesthetics & Price Points
2 0 2 5 I N V E S T O R P R E S E N TAT I O N POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW 12 W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M K E Y D I F F E R E N T I AT O R S AESTHETIC MODERN CLASSIC L
Slide 13: Digital First, Not Digital Only
2 0 2 5 I N V E S T O R P R E S E N TAT I O N K E Y D I F F E R E N T I AT O R S Digital First, Not Digital Only #19 ECOMMERCE RETAILER in the United States* RANK C O M PA N Y POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW Amazon.com Inc. W I L L I A M S S O N O M A | W I
Slide 14: Our Ecommerce Business
2 0 2 5 I N V E S T O R P R E S E N TAT I O N K E Y D I F F E R E N T I AT O R S Our Ecommerce Business The home furnishings industry is shifting online. Our digital-first platform is well-positioned to take advantage of this shift in consumer behavior to gain market share. 66% ECOMMERCE REVENUES ($
Slide 15: Data-Driven Marketing
2 0 2 5 I N V E S T O R P R E S E N TAT I O N K E Y D I F F E R E N T I AT O R S Data-Driven Marketing Our in-house digital marketing team leverages industry-leading customer analytics and exclusive first-party data as a competitive advantage. F I R S T- PA R T Y D ATA Unified view of first-party da
Slide 16: Artificial Intelligence
2 0 2 5 I N V E S T O R P R E S E N TAT I O N K E Y D I F F E R E N T I AT O R S Artificial Intelligence We see many opportunities to integrate AI into our business. D I G I TA L D E S I G N Transform customer experiences with generative AI-guided interior design, delivering personalized inspiration
Slide 17: Our Retail Advantage
2 0 2 5 I N V E S T O R P R E S E N TAT I O N K E Y D I F F E R E N T I AT O R S Our Retail Advantage Our stores deliver best-in-class customer experiences with beautifully curated assortments, personalized services, and an integrated shopping experience across channels. SERVICE Our free design serv
Slide 18: Our Values
2 0 2 5 I N V E S T O R P R E S E N TAT I O N K E Y D I F F E R E N T I AT O R S Our Values PEOPLE FIRST We are committed to an environment that attracts, motivates, and recognizes high performance. C O R P O R AT E R E S P O N S I B I L I T Y We operate with integrity and ethics as we enhance the l
Slide 19: Sustainability
2 0 2 5 I N V E S T O R P R E S E N TAT I O N K E Y D I F F E R E N T I AT O R S Sustainability One of our goals of running a profitable and strong company has always been to make the world a better place. Our customers have always wanted things like durable products, organic textiles, furniture wit
Slide 20: Accolades
2 0 2 5 I N V E S T O R P R E S E N TAT I O N K E Y D I F F E R E N T I AT O R S Accolades By managing resources responsibly, caring for our people, and uniting around our values, we lead our industry and are proud to be recognized for continuous action and progress. POTTERY BARN | POTTERY BARN KIDS
Slide 21: 2025 Priorities
2 0 2 5 I N V E S T O R P R E S E N TAT I O N POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW 21 W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M 2025 PRIORITIES 1 RETURNING TO GROWTH 2 SERVICE CUSTOMER E L
Slide 22: Historical Growth
2 0 2 5 I N V E S T O R P R E S E N TAT I O N 2025 PRIORITIES Historical Growth Our long-term growth algorithm is rooted in our proven track record of strong, consistent, and profitable growth over the past 20 years, with the capacity for upside driven from our growth initiatives. 20 YEAR GROWTH LON
Slide 23: Growth Drivers
2 0 2 5 I N V E S T O R P R E S E N TAT I O N POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW 23 W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M 2025 PRIORITIES 1 — EMERGING BRANDS — — C AT E G O R Y G R O
Slide 24: Core Brand Growth
2 0 2 5 I N V E S T O R P R E S E N TAT I O N GROWTH DRIVERS Core Brand Growth Newness and innovation will drive organic growth in our brands. POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N
Slide 25: Category Growth
2 0 2 5 I N V E S T O R P R E S E N TAT I O N GROWTH DRIVERS Category Growth We are leveraging our in-house design capabilities to expand into white space opportunities within our largest brands and beyond. C O L L A B O R AT I O N S POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM |
Slide 26: Emerging Brands
2 0 2 5 I N V E S T O R P R E S E N TAT I O N POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW 26 W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M GROWTH DRIVERS and home furnishings. Heirloom lighting, hardw
Slide 27: Rejuvenation: Our Next $1B Brand
2 0 2 5 I N V E S T O R P R E S E N TAT I O N GROWTH DRIVERS Rejuvenation: Our Next $1B Brand Based out of Portland, Oregon, our Rejuvenation brand is a trusted partner for every home project, offering expert guidance and high-quality designs for renovation and home refresh. With a focus on American
Slide 28: Business-to-Business: $80B Total Addressable Market
2 0 2 5 I N V E S T O R P R E S E N TAT I O N GROWTH DRIVERS Business-to-Business: $80B A $2B Opportunity TOTAL ADDRESSABLE MARKET * We are no longer just a home furnishings company. Leveraging our in-house design, vertical sourcing, and brand portfolio, we are disrupting the growing and underserved
Slide 29: Global
2 0 2 5 I N V E S T O R P R E S E N TAT I O N GROWTH DRIVERS Global Our brands resonate with consumers around the world, and we serve them across company-owned and franchise stores, shop-in-shops, and websites. POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW W I L L I A M
Slide 30: Leading World-Class Customer Service
2 0 2 5 I N V E S T O R P R E S E N TAT I O N 2025 PRIORITIES 2 Leading World-Class Customer Service — DELIVERY NETWORK — 13 37 2.4M POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW REGIONAL FURNITURE 2024 IN-HOME W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H
Slide 31: Driving Earnings
2 0 2 5 I N V E S T O R P R E S E N TAT I O N 2025 PRIORITIES 3 Driving Earnings We expect operating margin to be in the range of 17.4% – 17.8% in FY25 and in the mid-to-high teens in the long term. — OUR SIX DRIVERS — 17.7% 17.5% 17.9% 17.8% MID -TO- 1 SUPPLY CHAIN EFFICIENCIES maintaining the impr
Slide 32: Tariffs and Sourcing Footprint
2 0 2 5 I N V E S T O R P R E S E N TAT I O N DRIVE EARNINGS Tariffs Sourcing Footprint We have a 6-point plan for tariff mitigation. We have a diverse sourcing base around the world, including the United States. 1 Obtaining cost concessions from our strong vendor partnership. 16% INDIA 2 Re-sourcing
Slide 33: Financial Outlook
2 0 2 5 I N V E S T O R P R E S E N TAT I O N POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW 33 W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M FINANCIAL OUTLOOK Financial Outlook
Slide 34: Financial Performance
2 0 2 5 I N V E S T O R P R E S E N TAT I O N FINANCIAL OUTLOOK Financial Performance We have a track record of strong revenue and EPS growth. NET REVENUES NON-GAAP EPS 1 Ecom Revenue Retail Revenue 17.1% CAGR 3.3% CAGR POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW $8.50
Slide 35: Returns on Investment
2 0 2 5 I N V E S T O R P R E S E N TAT I O N FINANCIAL OUTLOOK Returns on Investment Our investments in our business are generating industry-leading returns. TOTAL SHAREHOLDER RETURNS 1 RETURNS ON INVESTED CAPITAL (ROIC) 2 WSI Peer Median 57.9% POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN |
Slide 36: Returns to Shareholders
2 0 2 5 I N V E S T O R P R E S E N TAT I O N FINANCIAL OUTLOOK Returns to Shareholders We are committed to consistent shareholder returns with $4.1B returned to shareholders over the last 5 years. RETURNS TO SHAREHOLDERS QUARTERLY DIVIDEND PER SHARE * Dividends ($M) Share Repurchases ($M) 2024 was
Slide 37: GAAP to Non-GAAP Reconciliations
2 0 2 5 I N V E S T O R P R E S E N TAT I O N G A A P T O N O N - G A A P R E C O N C I L I AT I O N S POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW W I L L I A M S S O N O M A | W I L L I A M S S O N O M A H O M E | R E J U V E N AT I O N | M A R K & G R A H A M GAAP TO
Slide 38: Fiscal Year 2024 & 2023 Reconciliation
2 0 2 5 I N V E S T O R P R E S E N TAT I O N G A A P T O N O N - G A A P R E C O N C I L I AT I O N S GAAP TO NON- GAAP REC ON C IL IATION S FOR THE FISCAL YEAR ENDED Fiscal Year February 2, 2025 January 28, 2024 $ % of Revenues $ % of Revenues 2024 & 2023 Occupancy Expenses $ 793,141 10.3% $ 814,2
Slide 39: Fiscal Year 2022 & 2021 Reconciliation
2 0 2 5 I N V E S T O R P R E S E N TAT I O N G A A P T O N O N - G A A P R E C O N C I L I AT I O N S GAAP TO NON- GAAP REC ON C IL IATION S FOR THE FISCAL YEAR ENDED Fiscal Year January 29, 2023 January 30, 2022 $ % of Revenues $ % of Revenues 2022 & 2021 Selling, general and administrative expens
Slide 40: Fiscal Year 2020 Reconciliation
2 0 2 5 I N V E S T O R P R E S E N TAT I O N G A A P T O N O N - G A A P R E C O N C I L I AT I O N S GAAP TO NON- GAAP REC ON C IL IATION S FOR THE FISCAL YEAR ENDED Fiscal Year January 31, 2021 $ % of Revenues Gross profit $ 2,636,269 38.9% 2020 Inventory write-off¹ $ 11,378 Non-GAAP gross profit $
Slide 41: Return on Invested Capital (ROIC)
2 0 2 5 I N V E S T O R P R E S E N TAT I O N G A A P T O N O N - G A A P R E C O N C I L I AT I O N S GAAP TO NON- GAAP REC ON C IL IATION S FOR THE FISCAL YEAR ENDED Return on February 2, 2025 January 28, 2024 Net earnings $ 1,125,251 $ 949,762 Interest income (expense), net (55,548) (29,162) Inve