Pottery Barn 2008 Annual Report Download - page 15

PART I
ITEM 1. BUSINESS
OVERVIEW
We are a specialty retailer of products for the home. The retail segment of our business sells our products through
our five retail store concepts (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Williams-
Sonoma Home). The direct-to-customer segment of our business sells similar products through our seven direct-
mail catalogs (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Bed and Bath, PBteen, West
Elm and Williams-Sonoma Home) and six e-commerce websites (williams-sonoma.com, potterybarn.com,
potterybarnkids.com, pbteen.com, westelm.com and wshome.com). The catalogs reach customers throughout the
U.S., while the five retail concepts, as of February 1, 2009, operated 627 stores in 44 states, Washington, D.C.,
Canada and Puerto Rico.
Based on net revenues in fiscal 2008, retail net revenues accounted for 58.4% of our business and
direct-to-customer net revenues accounted for 41.6% of our business. Based on their contribution to our net
revenues in fiscal 2008, the core brands in both the retail and direct-to-customer channels are: Pottery Barn,
which sells casual home furnishings; Williams-Sonoma, which sells cooking and entertaining essentials; and
Pottery Barn Kids, which sells stylish children’s furnishings.
Williams-Sonoma
We were founded in 1956 by Charles E. Williams, currently a Director Emeritus, with the opening of our first
store in Sonoma, California. Today, our Williams-Sonoma stores offer a wide selection of culinary and serving
equipment, including cookware, cookbooks, cutlery, informal dinnerware, glassware, table linens, specialty foods
and cooking ingredients. Our direct-to-customer business began in 1972 when we introduced our flagship
catalog, “A Catalog for Cooks,” which marketed the Williams-Sonoma brand. The stores continued to grow
throughout the years and in 1999, we launched both our Williams-Sonoma e-commerce website and our
Williams-Sonoma bridal and gift registry.
Pottery Barn
In 1986, we acquired Pottery Barn, a retailer of casual home furnishings and, in 1987, we launched the first
Pottery Barn catalog. Pottery Barn features a large assortment of home furnishings and furniture that we design
internally and source from around the world to create a classic american look in the home. In 2000, we
introduced our Pottery Barn e-commerce website and created Pottery Barn Bed and Bath, a catalog dedicated to
bed and bath products. Additionally, in 2001 we launched our Pottery Barn gift and bridal registry.
Pottery Barn Kids
In 1999, Pottery Barn Kids, a premier retailer offering children’s furnishings and accessories, began with the
introduction of the Pottery Barn Kids catalog. In 2000, we opened our first Pottery Barn Kids stores across the
U.S. and in 2001 we launched our Pottery Barn Kids e-commerce website and gift registry.
West Elm
In 2002, the West Elm brand was launched with the mailing of our first West Elm catalog. This brand targets
design conscious consumers looking for a modern aesthetic to furnish and accessorize their living spaces with
quality products at accessible price points. West Elm offers a broad range of home furnishing categories
including furniture, textiles, decorative accessories, lighting and tabletop items. In 2003, we launched our West
Elm e-commerce website and opened our first West Elm retail store in Brooklyn, New York.
PBteen
The PBteen brand began with the introduction of the PBteen catalog in 2003. PBteen offers exclusive collections
of home furnishings and decorative accessories that are specifically designed to reflect the personalities of the
teenage market. In late 2003, we launched our PBteen e-commerce website.
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Form 10-K