Williams-sonoma, Inc. · NYSE:WSM
Williams-sonoma — Investor Presentation (September 2018)
27 slides from Williams-sonoma's investor presentation, Sep 14, 2018
Slide 1: 2018 Investor Presentation
2018 Investor Presentation LAURA ALBER JULIE WHALEN P RE S I DE NT A N D EXEC UT IVE VIC E PR ESIDEN T, CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER OFFICER
Slide 2: Forward-Looking Statements
WILLIAMS-SONOMA, INC. ― Forward-Looking Statements The forward-looking statements included in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements address the financial condition, results of operati
Slide 3: Our Vision and Mission
WHO WE ARE — Our Vision To be the world’s leading specialty multi-channel retailer in home furnishings and housewares. Our Mission To enhance the quality of people’s lives at home. 3
Slide 4: Our Values
WHO WE ARE — Our Values PEOPLE FIRST We believe that our company has no limit and is driven by our associates and their imagination. We are committed to an environment that attracts, motivates and recognizes high performance. CUSTOMERS We are here to please our customers – without them, nothing else
Slide 5: Our Competitive Strengths
WHO WE ARE — Our Competitive Strengths MULTI-BRAND PORTFOLIO — MULTI-CHANNEL MODEL — VERTICALLY INTEGRATED — ELEVATED CUSTOMER EXPERIENCE — EXPERIENCED LEADERSHIP — CULTURE & VALUES 5
Slide 6: Multi-Brand Portfolio
COMPETITIVE STRENGTHS ― Multi-Brand Portfolio Eight distinct brands that address a range of demographics, lifestyles and life stages | $2.1 BILLION | | $1.1 BILLION | | $1.0 BILLION | | $630 MILLION | | $230 MILLION | | NOT DISCLOSED* | 6 *Net revenues from Rejuvenation and Mark and Graham are repor
Slide 7: Multi-Channel Model
COMPETITIVE STRENGTHS ― Multi-Channel Model Multi-channel presence is a defining characteristic of a best-in-class retailer experience 53% E-COMMERCE 47% RETAIL Leading e-commerce penetration 85% of sales in the home among multi-channel retailers furnishings industry are done in stores Evolved from
Slide 8: Vertically Integrated
COMPETITIVE STRENGTHS ― Vertically Integrated Direct sourcing model allows us to control every aspect from product development and manufacturing to distribution and sale 150+ 95% 13 1M+ DESIGNERS & ARTISTS of products sold are SOURCING OFFICES in-home furniture deliveries innovate and create DIRECTL
Slide 9: Elevated Customer Experience
COMPETITIVE STRENGTHS ― Elevated Customer Experience The customer experience is at the center of everything we do DESIG N CREW THE K EY REWARD S TO THE TRADE In-store and in-home interior design service Cross-brand loyalty program B2B membership program for trade professionals Value-added, complemen
Slide 10: Elevated Customer Experience
COMPETITIVE STRENGTHS ― Elevated Customer Experience Recently acquired Outward, Inc. offers leading 3D imaging technology to transform the customer shopping experience CUSTOMER FUNNEL INSPIRATIONAL IMAGERY 3D-Generated Images & Scenes CORE PRODUCT PAGES 360º Product Views PRODUCT CUSTOMIZATION Custo
Slide 11: Experienced Leadership
COMPETITIVE STRENGTHS ― Experienced Leadership An executive team that is experienced and collaborative Average tenure of 14+ years Demonstrated ability to adapt to changes in the economic environment and consumer behaviors Organizational structure with individual brand authority creates autonomy wit
Slide 12: Culture & Values
COMPETITIVE STRENGTHS ― Culture & Values Doing business the right way is important to us and important to our customers We prioritize equality, respect and sustainability in the workplace We are committed to offering responsibly — To protect our most important assets—our people—and enhance productiv
Slide 13: Digital Leadership
Digital Leadership We are committed to enhancing our customers’ digital experience through technology that inspires and enables E-commerce Digital advertising FRICTION-FREE SHOPPING BRAND AWARENESS • Develop best-in-class product information pages • Refocus core spend on top-of-funnel awareness driv
Slide 14: Product Innovation
Product Innovation We will drive product innovation across all of our brands PRODUCT DIFFERENTIATION VALUE & BRAND ACCESSIBILITY • Lead in product design by developing exclusive, innovative and • Increase offering of opening price points and scale diversification functional products • Refocus on “ca
Slide 15: Retail Transformation
Retail Transformation We will continue our retail transformation through differentiated customer experiences and overall fleet optimization SUPERIOR SERVICE BUY ONLINE PICKUP IN STORE • Enhance in-store, value-added services and tools, and loyalty • Create a convenient, seamless cross-channel experi
Slide 16: Operational Excellence
Operational Excellence We are relentlessly focused on improving customer satisfaction and driving efficiencies throughout our operations Supply Chain RETURNS, DAMAGES AND REPLACEMENTS DIRECT SOURCING ADVANTAGE • Improve transparency and scrutiny in the supply chain and delivery • Bid/negotiate raw m
Slide 17: Growth Opportunities
G R O W T H S T R AT E G I E S ― Growth Opportunities Consistent track record in driving growth through building a portfolio of unique brands ESTABLISHED BRANDS WEST ELM ON PATH TO BECOMING EMERGING BRANDS GAINING CONTINUE TO DRIVE GROWTH OUR BIGGEST BRAND TRACTION WITH RUNWAY FOR SUBSTANTIAL GROWTH
Slide 18: Pottery Barn Brands
G R O W T H S T R AT E G I E S ― Pottery Barn Brands POTTERY BARN POTTERY BARN KIDS PBTEEN Enhance core offerings with newness Expand fast-growing nursery business Innovate our foundational businesses and aesthetic variations and baby gear collection of furniture and bedding Expand PB Apartment coll
Slide 19: Williams Sonoma
G R O W T H S T R AT E G I E S ― Williams Sonoma PRODUCT CHANNEL Grow Williams Sonoma branded Enhance the digital experience through professional-quality cookware more personalized content and marketing Expand Open Kitchen value collection Leverage newly launched Buy Online Pick Up in Store to drive
Slide 20: West Elm
G R O W T H S T R AT E G I E S ― West Elm OPPORTUNITY PROVEN TRACK RECORD Market remains highly fragmented for design-oriented, Eight consecutive years of double-digit growth functional home furnishings ANNUAL REVENUE ($M) Low brand awareness of ~20% $1114 GROWTH STRATEGY $972 Leverage design leader
Slide 21: Emerging Brands
G R O W T H S T R AT E G I E S ― Emerging Brands WILLIAMS SONOMA HOME REJUVENATION MARK AND GRAHAM Double-digit revenue growth every quarter Average revenue growth of +20% over Average revenue growth of +20% over since brand launch in 2012 the last 5 consecutive years the last 5 consecutive years Ex
Slide 22: Global Expansion
G R O W T H S T R AT E G I E S ― Global Expansion Significant opportunity for international expansion with total addressable market of $350 billion MEXICO CANADA UNITED KINGDOM MIDDLE EAST SOUTH KOREA WS/PB/PK/PT/WE WS/PB/PK/WE WE WS/PB/PK/PT/WE WS/PB/PK/WE Franchise model Company-owned model Compan
Slide 23: Financial Track Record
FINANCIAL OVERVIEW ― Financial Track Record Consistent sales growth balanced with bottom-line profitability Net Revenues ($M) Non-GAAP EPS $3.61 9% CAGR $3.43 6% CAGR $5292 $3.37 $5084 $3.2 $4976 $4699 $4388 $2.84 $4043 $2.58 $3721 $3504 $2.24 $1.95 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 F
Slide 24: Financial Track Record
FINANCIAL OVERVIEW ― Financial Track Record Robust cash flow generation and above-industry ROIC Operating Cash Flow ($M) Non-GAAP ROIC $544 $525 $498 16.1% $462 15.9% 15.9% $454 15.7% 15.4% 15.3% $364 15.1% $356 $291 13.9% FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2010 FY2011 FY2012
Slide 25: Financial Track Record
FINANCIAL OVERVIEW ― Financial Track Record Balanced capital allocation strategy Capital Expenditures ($M) Shareholder Returns ($M) Total Investment of $1.4B Total Return of $2.4B $239 $205 $205 $203 $224 $225 $194 $197 $190 $194 $196 $155 $151 $130 $134 $135 $125 $126 $128 $112 $88 $62 $69 $59 FY20
Slide 26: 2018 Financial Outlook
FINANCIAL OVERVIEW ― 2018 Financial Outlook Total Net Revenues $5.565B – $5.665B Growth YOY 5% - 7% Comparable Brand Revenue Growth 3% – 5% Non-GAAP Operating Margin 8.4% – 9.0% Non-GAAP Diluted EPS $4.26 – $4.36 Growth YOY 18% - 21% Non-GAAP Income Tax Rate 24.0% – 26.0% Capital Expenditure $200M –
Slide 27: Williams-Sonoma, Inc.
WILLIAMS-SONOMA, INC. POTTERYBARN pottery barn kids PBteen west elm WILLIAMS SONOMA WILLIAMS, SONOMA HOME MARK & GRAHAM REJUVENATION 27
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