Pottery Barn 2008 Annual Report Download - page 81

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Quarterly Financial Information
(Unaudited)
Dollars in thousands, except per share amounts
Fiscal 2008 (52 Weeks)
First
Quarter1
Second
Quarter2
Third
Quarter3
Fourth
Quarter4
Full
Year
Net revenues $781,784 $819,621 $752,052 $1,008,015 $3,361,472
Gross margin 276,219 278,847 240,480 339,626 1,135,172
Earnings before income taxes517,062 25,233 (19,536) 19,194 41,953
Net earnings710,447 18,384 (10,998) 12,191 30,024
Basic earnings per share6$ 0.10 $ 0.17 $ (0.10) $ 0.12 $ 0.28
Diluted earnings per share6$ 0.10 $ 0.17 $ (0.10) $ 0.12 $ 0.28
Stock price (as of quarter-end) 7$ 26.10 $ 17.47 $ 8.28 $ 7.92 $ 7.92
Fiscal 2007 (53 Weeks)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Full
Year
Net revenues $816,051 $859,396 $895,132 $1,374,355 $3,944,934
Gross margin 301,970 320,095 342,081 571,825 1,535,971
Earnings before income taxes 30,381 43,394 44,679 197,886 316,340
Net earnings 18,150 25,966 27,077 124,564 195,757
Basic earnings per share6$ 0.16 $ 0.24 $ 0.25 $ 1.17 $ 1.79
Diluted earnings per share6$ 0.16 $ 0.23 $ 0.25 $ 1.15 $ 1.76
Stock price (as of quarter-end)7$ 35.67 $ 30.73 $ 30.61 $ 27.52 $ 27.52
1Includes a net pre-tax benefit of $9,350,000 in selling, general and administrative expense related to an incentive payment from a landlord
to compensate us for terminating a store lease prior to its expiration.
2Includes a pre-tax benefit of approximately $16,000,000 in selling, general and administrative expense related to the sale of our corporate
aircraft.
3Includes a pre-tax benefit of $11,023,000 in selling, general and administrative expense associated with the reversal of performance-based
stock compensation expense.
4Includes a pre-tax expense of $2,390,000 in cost of goods sold and $10,344,000 in selling, general and administrative expense related to
our infrastructure cost reduction program.
5Includes pre-tax impairment charges of $596,000 in the first quarter, $1,474,000 in the second quarter, $12,280,000 in the third quarter
and $19,645,000 in the fourth quarter related to our underperforming retail stores.
6The 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.
7Stock price represents our common stock price at the close of business on the Friday before our fiscal quarter-end.
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 February 1, 2009, 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.
69
Form 10-K