Pottery Barn 2006 Annual Report Download - page 32

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ITEM 6. SELECTED FINANCIAL DATA
Five-Year Selected Financial Data
Dollars and amounts in thousands, except percentages,
per share amounts and retail stores data Jan. 28, 2007 Jan. 29, 2006 Jan. 30, 2005 Feb. 1, 2004 Feb. 2, 2003
Results of Operations
Net revenues $3,727,513 $3,538,947 $3,136,931 $2,754,368 $2,360,830
Net revenue growth 5.3% 12.8% 13.9% 16.7% 13.1%
Gross margin $1,487,287 $1,435,482 $1,271,145 $1,110,577 $ 951,601
Earnings before income taxes $ 337,186 $ 348,798 $ 310,205 $ 255,638 $ 202,282
Net earnings $ 208,868 $ 214,866 $ 191,234 $ 157,211 $ 124,403
Basic net earnings per share $ 1.83 $ 1.86 $ 1.65 $ 1.36 $ 1.08
Diluted net earnings per share $ 1.79 $ 1.81 $ 1.60 $ 1.32 $ 1.04
Gross margin as a percent of net revenues 39.9% 40.6% 40.5% 40.3% 40.3%
Pre-tax operating margin as a percent of net revenues19.0% 9.9% 9.9% 9.3% 8.6%
Financial Position
Working capital $ 473,229 $ 492,772 $ 351,608 $ 245,005 $ 200,556
Total assets $2,048,331 $1,981,620 $1,745,545 $1,470,735 $1,264,455
Return on assets 10.1% 11.4% 11.9% 11.5% 11.0%
Long-term debt and other long-term obligations $ 32,562 $ 29,201 $ 32,476 $ 38,358 $ 23,217
Shareholders’ equity $1,151,431 $1,125,318 $ 957,662 $ 804,591 $ 643,978
Shareholders’ equity per share (book value) $ 10.48 $ 9.80 $ 8.30 $ 6.95 $ 5.63
Return on equity 18.3% 20.6% 21.7% 21.7% 21.1%
Debt-to-equity ratio 2.5% 3.0% 4.4% 4.6% 4.0%
Annual dividends declared per share $ 0.40 — — — —
Retail Revenues
Retail revenue growth 6.0% 12.3% 11.6% 13.9% 15.1%
Retail revenues as a percent of net revenues 57.8% 57.4% 57.7% 58.9% 60.3%
Comparable store sales growth 0.3% 4.9% 3.5% 4.0% 2.7%
Store count
Williams-Sonoma: 254 254 254 237 236
Grande Cuisine 248 243 238 215 204
Classic 611162232
Pottery Barn: 197 188 183 174 159
Design Studio 197 188 181 168 153
Classic —— 266
Pottery Barn Kids 92 89 87 78 56
West Elm 22 12 4 1 —
Williams-Sonoma Home 7 3 — — —
Outlets 16 16 15 14 14
Hold Everything — 8 9 8 13
Number of stores at year-end 588 570 552 512 478
Store selling area at fiscal year-end (sq. ft.) 3,389,000 3,140,000 2,911,000 2,624,000 2,356,000
Store leased area at fiscal year-end (sq. ft.) 5,451,000 5,035,000 4,637,000 4,163,000 3,725,000
Direct-to-Customer Revenues
Direct-to-customer revenue growth 4.5% 13.6% 17.1% 20.8% 10.2%
Direct-to-customer revenues as a percent of net revenues 42.2% 42.6% 42.3% 41.1% 39.7%
Catalogs circulated during the year 379,011 385,158 368,210 328,355 279,724
Percent (decrease) increase in number of catalogs
circulated (1.6%) 4.6% 12.1% 17.4% 14.1%
Percent increase in number of pages circulated 3.2% 9.7% 19.5% 16.8% 16.1%
1Pre-tax operating margin is defined as earnings before income taxes.
The information set forth above is not necessarily indicative of future operations and should be read in
conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and
the Consolidated Financial Statements and notes thereto in this Annual Report on Form 10-K.
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