Pottery Barn 2006 Annual Report Download - page 13

DOCUMENTS INCORPORATED BY REFERENCE
Portions of our definitive Proxy Statement for the 2007 Annual Meeting of Shareholders, also referred to in this
Annual Report on Form 10-K as our Proxy Statement, which will be filed with the Securities and Exchange
Commission, or SEC, on or about March 29, 2007, have been incorporated in Part III hereof, and portions of our
2006 Annual Report to shareholders have been incorporated in Part II hereof.
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K and the letter to shareholders contained in this annual report contain forward-
looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove
incorrect, could cause our business and results of operations to differ materially from those expressed or implied
by such forward-looking statements. Such forward-looking statements include, without limitation: any
projections of earnings, revenues or financial items, including future comparable store sales, projected capital
expenditures, the impact of new accounting pronouncements, our fiscal 2007 income tax provision and effective
tax rate, expectations for our operating margin, including statements related to increasing our pre-tax operating
margin by driving operational advancements and cost-containment initiatives and the use of our available cash,
including statements related to payment of dividends and our stock repurchase program; statements of the plans,
strategies, initiatives and objectives of management for future operations, including statements related to our
recovery plan and improvement in 2007 and 2008, increasing our market share, driving sustainable revenue
growth and the revitalization of the Pottery Barn brand; statements related to enhancing shareholder value;
statements related to our plans to increase retail leased square footage, including the opening of new retail stores
and expansion or remodeling of additional stores; statements related to new marketing initiatives, including
increasing and expanding catalog circulation, electronic direct marketing, e-commerce marketing, catalog page
counts (including Williams-Sonoma Home), refining our contact strategy, improving e-commerce conversion
and implementing new e-commerce functionality; statements related to the future performance and market
acceptance of new products and brands, including statements related to the growth potential of our brands
(including our emerging brands), investments in our emerging brands, building brand awareness, modifying our
brand roll-out strategy, rounding out and expanding our merchandise assortments, testing new product categories,
product innovation, enhancing product quality and product design resources; statements related to testing our
value proposition within shipping costs; statements related to driving efficiencies in our supply chain, leveraging
our infrastructure, maintaining expense controls and investing in our future, including statements related to
improving our in-stock position, improving our overall cost structure and implementing new inventory
management systems; statements related to gift card issuance and redemption; statements related to
transportation costs in the furniture delivery network and backroom and offsite storage management in our retail
stores; statements related to indemnifications under our agreements; statements related to legal proceedings; and
statements of belief and statements of assumptions underlying any of the foregoing. You can identify these and
other forward-looking statements by the use of words such as “will,” “may,” “should,” “expects,” “plans,”
“anticipates,” “believes,” “estimates,” “predicts,” “intends,” “potential,” “continue,” or the negative of such
terms, or other comparable terminology.
The risks, uncertainties and assumptions referred to above that could cause our results to differ materially from
the results expressed or implied by such forward-looking statements include, but are not limited to, those
discussed under the heading “Risk Factors” in Item 1A hereto and the risks, uncertainties and assumptions
discussed from time to time in our other public filings and public announcements. All forward-looking
statements included in this document are based on information available to us as of the date hereof, and we
assume no obligation to update these forward-looking statements.
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Form 10-K