Pottery Barn 2010 Annual Report Download - page 17

PART I
ITEM 1. BUSINESS
OVERVIEW
We are a specialty retailer of products for the home. The direct-to-customer segment of our business sells our
products through our six direct-mail catalogs (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn
Bed and Bath, PBteen, and West Elm) 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. The retail segment of our business sells similar products through our four retail store concepts (Williams-
Sonoma, Pottery Barn, Pottery Barn Kids, and West Elm). As of January 30, 2011, all of our Williams-Sonoma
Home retail stores have been permanently closed. In fiscal 2011, it is our intent to market those Williams-
Sonoma Home merchandising categories that support our bridal registry, expanded flagship and designer
assortments through the Williams-Sonoma kitchen brand. These categories will be available both on-line and in
select Williams-Sonoma stores. As of January 30, 2011, we operated 592 stores in 44 states, Washington, D.C.,
Canada and Puerto Rico.
Based on net revenues for the 52-weeks ended January 30, 2011 (“fiscal 2010”), direct-to-customer net revenues
accounted for 41.5% of our business and retail net revenues accounted for 58.5% of our business. Based on their
contribution to our net revenues in fiscal 2010, the core brands in both the direct-to-customer and retail 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.
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Form 10-K