Williams-sonoma, Inc. · NYSE:WSM
Williams-sonoma — Investor Presentation (September 2016)
28 slides from Williams-sonoma's investor presentation, Sep 19, 2016
Slide 1: Investor Presentation
2016 Investor Presentation JULIE WHALEN J O H N F. S T R A I N BETH POTILLO-MILLER Executive Vice President, Executive Vice President, SVP Finance, Corporate Treasurer, Chief Financial Officer Chief Digital and Investor Relations Technology Officer
Slide 2: Forward-Looking Statements
WI LLI AMS -SON OM A , IN C . 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 o
Slide 3: Who We Are
WHO WE ARE 3
Slide 4: Our vision from the beginning has been to enhance our customers' lives at home
“Our vision from the beginning has been to enhance our customers’ lives at home. Our customers love their homes, and we have a singular focus on helping them make their homes a reflection of who they are.” LAURA ALBER PRESIDENT & CEO 4
Slide 5: What Sets Us Apart
WHO WE A RE What Sets Us Apart 1 5 O U R M U LT I - B R A N D P O R T F O L I O allows us O U R AT T I T U D E T O WA R D C O N S C I O U S N E S S to deliver multiple, relevant aesthetics and purpose in everything we do is across demographics, life stages, and price a differentiator and is importan
Slide 6: Vertically Integrated, Multi-Brand, Multi-Channel Retailer
WHO WE ARE: M ULTI - BR A ND PO RT F OL IO Vertically Integrated, Multi-Brand, Multi-Channel Retailer For more than 60 years, we have offered products of the highest quality at an excellent value to our customers through an elevated experience. We address a range of demographics, lifestyles, and lif
Slide 7: Portfolio of Recognized Brands
WHO WE ARE: M ULTI - BR A ND PO RT F OL IO Portfolio of Recognized Brands $994MM $2,074MM 20% 42% 17% OTHER $193MM $821MM 13% 3% 5% $640MM $254MM $5.0B FY15 NET REVENUES 7
Slide 8: New Lines of Business & Brands Grown Internally
WHO WE ARE: M ULTI - BR A ND PO RT F OL IO New Lines of Business & Brands Grown Internally WE S T E L M G LOBAL POTT ERY BARN KID S PB T EEN WIL L IAM S -S ON OM A H OM E R E J U V E N AT I ON M AR K & G R AH AM 8
Slide 9: West Elm: Accelerated Growth
WHO WE ARE: M ULTI - BR A ND PO RT F OL IO West Elm: Accelerated Growth Brand expected to exceed $2B. Planning to enter 7 new domestic markets in 2016. REVENUE GROWTH STORE COUNT 29% 98 30% 28% 100 26% 87 23% 24% 23% 24% 80 69 58 18% 60 48 36 37 12% 40 6% 20 0% 0 2010 2011 2012* 2013 2014 2015 2010
Slide 10: Global Expansion Provides Long-term Growth Opportunities
WHO WE ARE: M ULTI - BR A ND PO RT F OL IO Global Expansion Provides Long-term Growth Opportunities Global has grown from 3% to 6% of total revenue from 2010 to 2015. UNITED KINGDOM CANADA • Company-owned model • Company-owned model 1 store and E-commerce 27 stores z • z Wholesale model 7 John Lewis
Slide 11: Leading Multi-Channel Retail
WHO WE ARE: M ULTI - C H A N NEL MO DE L Leading Multi-Channel Retail P HYSIC AL S TOR E S R E P R E S E N T ~90% OF TOTAL SAL E S ACROSS T H E H OM E F UR N IS H IN G S INDUS T RY E-COMMERCE RETAIL M ULT I-C H AN N E L 50% 50% CUS TOM E RS SPE N D 4-5X MORE T H AN S IN G L E -C H AN N E L CUS TOM E
Slide 12: Leading Multi-Channel Retail: $2.5 Billion E-commerce
WHO WE ARE: M ULTI - C H A N NEL MO DE L Leading Multi-Channel Retail S I N C E L AU N C H I N G OU R WEBS IT ES IN 2 00 0, WE H AV E G ROWN TO AL M OS T $2.5 BILLION IN E -COM M E RCE SAL E S, A 27% CO MP OUN D A N NUAL GROW T H RAT E. v IN T E RN ET SALE S $3,000 $2,400 $ IN MILLIONS $1,800 27% CA
Slide 13: Vertically Integrated
WHO WE ARE: M ULTI - C H A N NEL MO DE L Vertically Integrated We control every aspect from product development to manufacturing, distribution and sale. This direct sourcing model allows us to generate industry-leading gross margins and quality, while delivering value to the customer. 150 95% 1,000
Slide 14: Data Driven Marketing Excellence
WHO WE ARE: MARKETING EXPERTISE Data Driven Marketing Excellence P O T T E RY B A R N WILLIAMS-SONOMA HOME P O T T E RY B A R N K I D S WEST ELM PB TEEN MARK AND GRAHAM “ U N I F I E D C U S T O M E R D ATA B A S E ” of almost WILLIAMS-SONOMA R E J U V E N AT I O N 60 million households who have pur
Slide 15: Our Path to the Future
W HO WE ARE: CORPORATE CONSCIOUSNESS Our Path to the Future “Acting responsibly is deeply linked to both the purpose and business strategy of Williams-Sonoma, Inc.” LAURA ALBER PRESIDENT & CEO THROUGH RESPONSIBLE BY SUPPORTING AND ALONG WITH GLOBAL GROWTH S O U R C I N G of raw materials in E M P O
Slide 16: Keys To Our Multi-Channel Success: Executive Team & Organizational Design
WHO WE ARE: OUR EXPERIENCED TEAM Keys To Our Multi-Channel Success: Executive Team & Organizational Design AVERAGE TENURE of executive team is over 10 years with the company—multi-channel is part of our corporate DNA. ORGANIZATIONAL STRUCTURE with individual brand authority creates autonomy with acc
Slide 17: Strategic Priorities
WHO WE ARE: OUR EXPERIENCED TEAM Strategic Priorities R E A S S E RT R E VOLU T I ON I Z E T R AN S F OR M C H AN G E OUR PRO D U CT APPROAC H OUR APPROAC H L E AD E R S H IP TO IN V E N TORY M AR KE T IN G TO R E AL E S TAT E 17
Slide 18: Strategic Priority: Reassert Product Leadership
WHO WE ARE: OUR EXPERIENCED TEAM Strategic Priority: Reassert Product Leadership We will build on our 60 years of innovation and leadership with a focus on products that serve a distinct purpose—and are differentiated through our price/quality relationship, design aesthetic, and functionality. 18
Slide 19: Strategic Priority: Revolutionize Approach to Inventory
WHO WE ARE: OUR EXPERIENCED TEAM Strategic Priority: Revolutionize Approach to Inventory Implement new inventory management system and processes. Match supply to demand across geographies. Identify and eliminate unproductive SKUs. Plan to grow inventory less than sales in 2016. Distribution capacity
Slide 20: Regionalized Supply Chain Network
WHO WE ARE: OUR EXPERIENCED TEAM Regionalized Supply Chain Network Designed to Optimize Speed, Cost, and Damage-Free Delivery CRANBURY, NJ CITY OF INDUSTRY, BRASELTON, CA GA ARLINGTON, TX LEGEND MEMPHIS, TN DISTRIBUTION CENTER FURNITURE HUB 20
Slide 21: Strategic Priority: Transform Our Marketing
WHO WE ARE: OUR EXPERIENCED TEAM Strategic Priority: Transform Our Marketing Strengthen marketing around value propositions. Leverage our content to emphasize our differentiation from the competition through safety, material construction, design and social consciousness. Aggressively market our best
Slide 22: Strategic Priority: Change Our Approach to Real Estate
WHO WE ARE: OUR EXPERIENCED TEAM Strategic Priority: Change Our Approach to Real Estate Retail stores remain important part of our model. Opportunities to improve profitability. New formats and locations to drive store traffic with experiences and localized assortments. 22
Slide 23: U.S. Retail Locations
WHO WE ARE: OUR EXPERIENCED TEAM U.S. Retail Locations At the end of FY 2015, Williams-Sonoma, Inc. had 618 company-owned stores including 571 in the United States, 27 in Canada, 19 in Australia and 1 in the United Kingdom. 11 2 11 2 8 2 7 37 2 19 2 16 3 3 21 13 9 18 25 24 4 5 2 11 24 4 8 4 87 9 2 7
Slide 24: Financial Overview
FINANCIAL OVERVIEW 24
Slide 25: Financial Overview
STRONG FI NAN C IA L R ET U R N S Financial Overview NET REVENUES NON-GAAP EARNINGS PER SHARE $4.00 $6,000 $3.35- $5,075 - 13% CAGR 7% CAGR $3.37 $3.55* $4,976 $5,225* $3.50 $3.20 $4,699 $4,800 $4,388 $2.84 $3.00 $4,043 $2.58 $3,721 $3,504 $2.50 $2.24 $3,600 $ IN MILLIONS $1.95 $2.00 $2,400 $1.50 $1
Slide 26: Balanced Capital Allocation Strategy
STRONG FI NAN C IA L R ET U R N S Balanced Capital Allocation Strategy C A P I TA L E X P E N D I T U R E S RETURNING CASH TO SHAREHOLDERS Over $1.7B returned in the past 6 years $400 $300 $351 $350 $353 $240 $320 $205 $205 $203 $263 $ IN MILLI ON S $ IN MILLI ON S $194 $243 $180 $240 $184 $130 $120
Slide 27: Three-Year Outlook Growth & Profitability Goals
FI NAN CIAL DI SC IP LINE Three-Year Outlook Growth & Profitability Goals VEHICLE TA R G E T Revenue Growth Mid to high single-digits EPS Growth Low double-digit to mid-teens Capital Expenditures $200MM to $220MM Dividends 35% to 40% of Net Income 2016 $500MM Share Repurchase Share Repurchases Autho
Slide 28: Williams-Sonoma Fact Sheet
WI LLI AMS -SON OM A , IN C . Williams-Sonoma Fact Sheet ABOUT WILLIAMS-SONOMA, INC. 2015 SALES BY CHANNEL Williams-Sonoma, Inc. is a specialty retailer of high-quality products for the home. These products, representing eight distinct merchandise strategies – Williams-Sonoma, Pottery Barn, Pottery
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