Pottery Barn 2011 Annual Report Download - page 5

To Our Stockholders,
2011 was a year of record performance for our company despite the continued challenging economic
environment. Our company ended the year stronger, and initiatives across the organization led to continued
profitability. This performance reflects the strength of our company’s strategies and brands—Pottery Barn,
Williams-Sonoma, Pottery Barn Kids, West Elm, PBteen and Rejuvenation—as well as the quality of our
associates and their executive leadership.
2011 also saw the first full year of Laura Alber’s tenure as the company’s President and Chief Executive Officer.
Laura has performed with distinction, as evidenced by our results and the number of exciting new strategic
initiatives she has developed with her colleagues. On behalf of the Board, I would like to thank Laura and her
executive team for their excellent leadership of the business, and all of the company’s associates for delivering
2011’s record results. I would also like to thank my fellow Board members for their continued support and
guidance.
In fiscal 2011, our net revenues increased 6.2 percent to $3.7 billion, and our diluted earnings per share increased
to $2.22 from $1.83 in fiscal 2010, a growth of 21 percent. These strong earnings allowed us to end the year with
more than $500 million in cash after returning $263 million to our stockholders through share repurchases and
dividends.
We remain confident in the cash-generating power of our multi-channel business model and the strength of the
company’s balance sheet. As such, we remain committed to returning excess cash to our stockholders. We are
pleased to have increased our quarterly cash dividend by 47 percent in fiscal 2011, and anticipate completing our
$225 million stock repurchase program in fiscal 2012.
During fiscal 2011, Rose Marie Bravo, Mary Ann Casati and Lorraine Twohill joined the Board of Directors.
Ms. Bravo brings over 30 years of experience in the retail industry in roles as both an executive and a director.
Ms. Casati has extensive experience advising retail companies, as both an investment banker and director.
Ms. Twohill has been recognized for her marketing expertise, and brings strong experience in digital and social
media. We welcome Rose Marie, Mary Ann and Lorraine to the company, and believe that they will continue to
bring valuable insight to the Board.
We are grateful to our stockholders for your ongoing confidence in our company. Our Board believes that we
have the right strategies for the future and that we have the best management team to execute those strategies. In
addition, I would also like to thank our customers and vendors for their continuing dedication to our company.
We look forward to continued success in 2012.
Adrian D.P. Bellamy
Chairman of the Board of Directors
Stockholders Letters