Pottery Barn 2011 Annual Report Download - page 42

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Results of Operations
NET REVENUES
Net revenues consist of direct-to-customer net revenues and retail net revenues. Direct-to-customer net revenues
include sales of merchandise to customers through our e-commerce websites and our catalogs, as well as
shipping fees. Retail net revenues include sales of merchandise to customers at our retail stores, as well as
shipping fees on any retail products shipped to our customers’ homes. Shipping fees consist of revenue received
from customers for delivery of merchandise to their homes. Revenues are presented net of sales returns and other
discounts.
Dollars in thousands Fiscal 2011 % Total Fiscal 2010 % Total Fiscal 2009 % Total
Direct-to-customer net revenues $1,632,811 43.9% $1,452,572 41.5% $1,224,670 39.5%
Retail net revenues 2,088,084 56.1% 2,051,586 58.5% 1,878,034 60.5%
Net revenues $3,720,895 100.0% $3,504,158 100.0% $3,102,704 100.0%
Net revenues in fiscal 2011 increased by $216,737,000, or 6.2%, compared to fiscal 2010. This increase was
driven by growth of 7.3% in comparable brand revenue, including e-commerce net revenue growth of 17.9%
within the direct-to-customer channel and a 3.5% increase in comparable store sales. Increased net revenues
during fiscal 2011 were driven by the Pottery Barn, West Elm and Pottery Barn Kids brands.
Net revenues in fiscal 2010 increased by $401,454,000, or 12.9%, compared to fiscal 2009. This increase was
driven by growth of 26.9% in our e-commerce net revenues primarily driven by increased Internet advertising
and growth of 9.8% in comparable store sales, partially offset by a 4.1% year-over-year reduction in retail leased
square footage, including 18 net fewer stores. Increased net revenues during fiscal 2010 were driven by the
Pottery Barn, Pottery Barn Kids, West Elm and Williams-Sonoma brands.
The following table summarizes our net revenues by brand for fiscal 2011, fiscal 2010 and fiscal 2009.
Dollars in thousands Fiscal 2011 Fiscal 2010 Fiscal 2009
Pottery Barn $1,600,847 $1,511,029 $1,304,319
Williams-Sonoma 994,425 1,006,086 958,461
Pottery Barn Kids 521,565 487,647 432,999
West Elm 335,980 259,936 211,576
PBteen 212,270 197,635 163,240
Other 55,808 41,825 32,109
Total $3,720,895 $3,504,158 $3,102,704
Comparable Brand Revenue Growth
Comparable brand revenue includes retail comparable store sales and direct-to-customer sales, as well as
shipping fees, sales returns and other discounts associated with current period sales. Outlet comparable store net
revenues are also included in their respective brands. Sales related to our international franchised stores have
been excluded as these stores are not operated by us.
Comparable stores are defined as permanent 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.
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