Pottery Barn 2006 Annual Report Download - page 78

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Quarterly Financial Information
(Unaudited)
Dollars in thousands, except per share amounts
Fiscal 2006
First
Quarter
Second
Quarter3
Third
Quarter
Fourth
Quarter
Full
Year
Net revenues $794,286 $825,536 $852,758 $1,254,933 $3,727,513
Gross margin 305,421 314,560 325,738 541,568 1,487,287
Earnings before income taxes 37,485 57,762 44,644 197,295 337,186
Net earnings 23,099 35,563 29,142 121,064 208,868
Basic earnings per share1$ 0.20 $ 0.31 $ 0.26 $ 1.08 $ 1.83
Diluted earnings per share1$ 0.20 $ 0.30 $ 0.25 $ 1.06 $ 1.79
Stock price (as of quarter-end)2$ 41.87 $ 32.23 $ 34.26 $ 34.24 $ 34.24
Fiscal 2005
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter4
Full
Year
Net revenues $720,688 $776,239 $827,623 $1,214,397 $3,538,947
Gross margin 284,922 294,835 326,077 529,648 1,435,482
Earnings before income taxes 44,324 49,601 59,958 194,915 348,798
Net earnings 26,173 30,823 37,087 120,783 214,866
Basic earnings per share1$ 0.23 $ 0.27 $ 0.32 $ 1.05 $ 1.86
Diluted earnings per share1$ 0.22 $ 0.26 $ 0.31 $ 1.02 $ 1.81
Stock price (as of quarter-end)2$ 33.49 $ 44.16 $ 37.34 $ 40.62 $ 40.62
1The sum of the quarterly net earnings per share amounts will not necessarily equal the annual net earnings per share as
each quarter is calculated independently.
2Stock price represents our common stock price at the close of business on the Friday before our fiscal quarter-end.
3Includes a net pre-tax benefit of $10,200,000 in selling, general and administrative expenses related to unredeemed gift
certificate income due to a change in estimate, the Visa/MasterCard litigation settlement income and the expense associated
with the departure of our former Chief Executive Officer.
4Includes a pre-tax charge of $4,500,000 in cost of goods sold and $9,000,000 in selling, general and administrative expenses
related to the transitioning of the merchandising strategies of our Hold Everything brand into our other existing brands. See
Note A to our Consolidated Financial Statements.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
As of January 28, 2007, an evaluation was performed by management, with the participation of our Chief
Executive Officer (“CEO”) and our Executive Vice President, Chief Operating and Chief Financial Officer
(“CFO”), of the effectiveness of our disclosure controls and procedures. Based on that evaluation, our
management, including our CEO and CFO, concluded that our disclosure controls and procedures are effective to
ensure that information we are required to disclose in reports that we file or submit under the Securities
Exchange Act of 1934 is accumulated and communicated to our management, including our CEO and CFO, as
appropriate, to allow timely discussions regarding required disclosures, and that such information is recorded,
processed, summarized and reported within the time periods specified in the rules and forms of the SEC.
Changes in Internal Control Over Financial Reporting
There was no change in our internal control over financial reporting that occurred during our most recent fiscal
quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial
reporting.
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