Pottery Barn 2005 Annual Report Download - page 36

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Fiscal 2005 Fiscal 2004 Fiscal 2003
Store
Count
Avg. LSF
Per Store
Store
Count
Avg. LSF
Per Store
Store
Count
Avg. LSF
Per Store
Williams-Sonoma 254 5,700 254 5,700 237 5,400
Pottery Barn 188 12,100 183 11,900 174 11,700
Pottery Barn Kids 89 7,800 87 7,800 78 7,700
Hold Everything18 7,600 9 6,100 8 4,300
West Elm 12 16,100 4 14,500 1 9,500
Williams-Sonoma Home 3 13,900 — — — —
Outlets 16 20,200 15 15,500 14 14,200
Total 570 8,800 552 8,400 512 8,100
1Subsequent to fiscal 2005 year-end, the Company closed all 8 of its Hold Everything stores.
Retail revenues in fiscal 2005 increased by $221,928,000, or 12.3%, over fiscal 2004 primarily due to an increase
in store leased square footage of 8.6% (including 30 new store openings and the remodeling or expansion of an
additional 8 stores) and a comparable store sales increase of 4.9%. These increases were partially offset by the
temporary closure of 12 stores and the permanent closure of 8 stores during fiscal 2005. Net revenues generated
in the Pottery Barn, Williams-Sonoma, West Elm and Pottery Barn Kids brands were the primary contributors to
the year-over-year revenue increase. Pottery Barn and Pottery Barn Kids accounted for 50.0% of the growth in
retail revenues from fiscal 2004 to fiscal 2005.
Retail revenues in fiscal 2004 increased by $188,596,000, or 11.6%, over fiscal 2003 primarily due to an increase
in store leased square footage of 11.4% (including 43 new store openings and the remodeling or expansion of an
additional 17 stores) and a comparable store sales increase of 3.5%. These increases were partially offset by the
temporary closure of 15 stores and the permanent closure of 5 stores during fiscal 2004. Net revenues generated
in the Pottery Barn, Williams-Sonoma and Pottery Barn Kids brands were the primary contributors to the year-
over-year revenue increase, partially offset by the transitional impact of our Hold Everything brand realignment
strategy. Pottery Barn and Pottery Barn Kids accounted for 65.8% of the growth in retail revenues from fiscal
2003 to fiscal 2004.
Comparable Store Sales
Comparable stores are defined as those stores in which gross square footage did not change by more than 20% in
the previous 12 months and which have been open for at least 12 consecutive months without closure for seven
or more consecutive days. Comparable stores exclude new retail concepts until such time as we believe that
comparable store results in those concepts are meaningful to evaluating the performance of the retail strategy.
For fiscal 2005, our total comparable store sales exclude the West Elm concept, which, at year-end, had only four
stores operating for more than one year. One West Elm store was excluded in fiscal 2004. By measuring the year-
over-year sales of merchandise in the stores that have a history of being open for a full comparable 12 months or
more, we can better gauge how the core store base is performing since it excludes store remodelings, expansions
and closings.
Percentages represent changes in comparable store sales versus the same period in the prior year.
Percent increase (decrease) in comparable store sales Fiscal 2005 Fiscal 2004 Fiscal 2003
Williams-Sonoma 2.8% 0.5% 6.7%
Pottery Barn 5.7% 4.6% 2.3%
Pottery Barn Kids 5.2% 4.1% 0.4%
Hold Everything (10.7%) 2.1% (5.2%)
Outlets 14.7% 18.1% 6.7%
Total 4.9% 3.5% 4.0%
Various factors affect comparable store sales, including the number, size and location of stores we open, close,
remodel or expand in any period, the general retail sales environment, consumer preferences and buying trends,
24