Pottery Barn 2011 Annual Report Download - page 17

PART I
ITEM 1. BUSINESS
OVERVIEW
We are a multi-channel specialty retailer of high-quality products for the home. The direct-to-customer segment
of our business sells our products through our six e-commerce websites (williams-sonoma.com, potterybarn.com,
potterybarnkids.com, pbteen.com, westelm.com and rejuvenation.com) and seven direct-mail catalogs (Williams-
Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Bed and Bath, PBteen, West Elm and Rejuvenation). Our
e-commerce platform is available to customers in more than 75 countries, while our catalogs reach customers
throughout the U.S. The retail segment of our business sells similar products through our five retail store
concepts (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, West Elm and Rejuvenation). As of January 29,
2012, we operated 576 stores in 44 states, Washington, D.C., Canada and Puerto Rico.
Based on net revenues for the 52-weeks ended January 29, 2012 (“fiscal 2011”), direct-to-customer net revenues
accounted for 43.9% of our business and retail net revenues accounted for 56.1% of our business. Based on their
contribution to our net revenues in fiscal 2011, our core brands 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
entertaining products, including cookware, cookbooks, cutlery, informal dinnerware, glassware, table linens,
specialty foods and cooking ingredients. The brand’s direct-to-customer business began in 1972 with our flagship
catalog, “A Catalog for Cooks,” which marketed the Williams-Sonoma brand far beyond communities where
stores were located. Demand for our products grew and our retail footprint expanded to include stores throughout
the United States. 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
in-house 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
Pottery Barn Kids, a premier retailer offering children’s furnishings and accessories, launched in 1999 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.
PBteen
The PBteen brand began with the introduction of the PBteen catalog in 2003. The PBteen e-commerce website
launched later that same year. PBteen offers exclusive collections of home furnishings and decorative accessories
that are specifically designed to reflect the personalities of the teenage market.
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Form 10-K