Pottery Barn 2007 Annual Report Download - page 34

Fiscal 2007 Fiscal 2006 Fiscal 2005
Store
Count
Avg. LSF
Per Store
Store
Count
Avg. LSF
Per Store
Store
Count
Avg. LSF
Per Store
Williams-Sonoma 256 6,100 254 5,900 254 5,700
Pottery Barn 198 12,500 197 12,200 188 12,100
Pottery Barn Kids 94 7,900 92 7,900 89 7,800
West Elm 27 18,200 22 17,400 12 16,100
Williams-Sonoma Home 9 14,300 7 14,500 3 13,900
Outlets 16 20,500 16 20,200 16 20,200
Hold Everything1— — — — 8 7,600
Total 600 9,600 588 9,300 570 8,800
1During the first quarter of fiscal 2006, we closed our remaining eight Hold Everything stores.
Retail revenues in fiscal 2007 increased by $127,240,000, or 5.9%, over fiscal 2006. This increase was primarily
due to an increase in store leased square footage of 5.3% (including 23 new store openings and the remodeling or
expansion of an additional 26 stores), the impact of the extra week of net revenues in fiscal 2007, a 53-week year,
and comparable store sales growth of 0.3% in fiscal 2007. This increase was partially offset by the temporary
closure of 28 stores and the permanent closure of 9 stores during fiscal 2007. Net revenues generated in the West
Elm, Pottery Barn, Williams-Sonoma and Williams-Sonoma Home brands were the primary contributors to this
year-over-year revenue increase.
Retail revenues in fiscal 2006 increased by $121,071,000, or 6.0%, over fiscal 2005. This increase was primarily
due to an increase in store leased square footage of 8.3% (including 28 new store openings and the remodeling or
expansion of an additional 28 stores) and comparable store sales growth of 0.3% in fiscal 2006. This increase was
partially offset by the temporary closure of 24 stores and the permanent closure of 14 stores during fiscal 2006. Net
revenues generated in the West Elm, Williams-Sonoma, Pottery Barn Kids, Williams-Sonoma Home and Pottery
Barn brands were the primary contributors to the year-over-year revenue increase, partially offset by lost revenues
in the Hold Everything brand due to the closure of all its stores in late 2005 and the first quarter of fiscal 2006.
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. 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 new store openings, store remodelings, expansions and closings. 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 2007 and fiscal 2006, our total
comparable store sales exclude the West Elm and Williams-Sonoma Home concepts. For fiscal 2005, our total
comparable store sales exclude only the West Elm concept as there were no Williams-Sonoma Home stores open
for a full comparable 12 months or more.
Percentages represent changes in comparable store sales versus the same period in the prior year.
Percent increase (decrease) in comparable store sales
Fiscal 2007
(53 Weeks)
Fiscal 2006
(52 Weeks)
Fiscal 2005
(52 Weeks)
Williams-Sonoma 0.7% 3.0% 2.8%
Pottery Barn (0.3%) (2.1%) 5.7%
Pottery Barn Kids (1.5%) 3.3% 5.2%
Outlets 5.8% (4.3%) 14.7%
Hold Everything1— — (10.7%)
Total 0.3% 0.3% 4.9%
1Hold Everything stores are excluded from the fiscal 2007 and fiscal 2006 comparable store sales calculation as this brand’s
remaining eight stores were closed in the first quarter of fiscal 2006.
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