Pottery Barn 2008 Annual Report Download - page 40

Fiscal 2008 Fiscal 2007 Fiscal 2006
Store
Count
Avg. LSF
Per Store
Store
Count
Avg. LSF
Per Store
Store
Count
Avg. LSF
Per Store
Williams-Sonoma 264 6,300 256 6,100 254 5,900
Pottery Barn 204 12,900 198 12,500 197 12,200
Pottery Barn Kids 95 7,900 94 7,900 92 7,900
West Elm 36 17,100 27 18,200 22 17,400
Williams-Sonoma Home 10 13,300 9 14,300 7 14,500
Outlets 18 20,300 16 20,500 16 20,200
Total 627 9,800 600 9,600 588 9,300
Retail net revenues in fiscal 2008 decreased by $318,720,000, or 14.0%, over fiscal 2007. This decrease was
primarily due to the downturn in the economic environment during fiscal 2008 resulting in a comparable store
sales decrease of 17.2%, the impact of the extra week of net revenues in fiscal 2007 (a 53-week year) of
approximately $30,000,000 and the temporary and permanent closure of 21 stores and 4 stores, respectively. This
decrease was partially offset by an increase in store leased square footage of 7.1%, including 29 new store
openings and the remodeling or expansion of an additional 23 stores. Net revenue decreases were led by the
Pottery Barn, Williams-Sonoma and Pottery Barn Kids brands, partially offset by net revenue increases in the
West Elm brand.
Retail net 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) of approximately $30,000,000, 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.
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 and expansions. 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 2008, 2007 and 2006, our total comparable store
sales exclude the West Elm and Williams-Sonoma Home concepts.
Percentages represent changes in comparable store sales versus the same period in the prior year.
Percent increase (decrease) in comparable store sales
Fiscal 2008
(52 Weeks)
Fiscal 2007
(53 Weeks)
Fiscal 2006
(52 Weeks)
Williams-Sonoma (11.4%) 0.7% 3.0%
Pottery Barn (21.8%) (0.3%) (2.1%)
Pottery Barn Kids (17.8%) (1.5%) 3.3%
Outlets (17.1%) 5.8% (4.3%)
Total (17.2%) 0.3% 0.3%
Various factors affect comparable store sales, including the number, size and location of stores we open, close,
remodel or expand in any period, the overall economic and general retail sales environment, consumer
preferences and buying trends, changes in sales mix between distribution channels, our ability to efficiently
source and distribute products, changes in our merchandise mix, competition (including competitive promotional
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