Pottery Barn 2012 Annual Report Download - page 40
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Please find page 40 of the 2012 Pottery Barn annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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While the Williams-Sonoma brand has grown in size to almost one billion dollars, 75% of our revenues now
come from our other internally developed brands. In 2012, we broadened the reach and relevance of each of our
brands and invested in new businesses. In the Williams-Sonoma brand, we are executing a vision that allows us
to be less reliant on branded goods. In all of the Pottery Barn brands, we continued to deliver strong growth, and
West Elm, one of our largest growth vehicles, is now approaching 11% of our business. Also, in fiscal 2012, we
incubated and launched new businesses, including: Mark and Graham, which specializes in personalized products
and gifts; West Elm Market, a brand extension of West Elm that expands the brand to new categories in new
settings; and Agrarian, a new category extension of the Williams-Sonoma brand which celebrates homemade and
homegrown. Fiscal 2012 also marked Rejuvenation’s first full year of operations as a part of our portfolio of
brands. We plan to expand on each of these businesses in 2013.
In our global business, our franchise operations continue to grow. In fiscal 2012, an additional 10 stores were
opened in the Middle East by our unaffiliated franchisee, including the first PBteen store, and there are now
23 franchise stores at the end of fiscal 2012. In fiscal 2013, we will enter into the Australian market, with four
company-owned retail stores, e-commerce websites and distribution operations.
In our supply chain, we focused on reducing costs and improving service through continued network re-design
and the in-sourcing of our foreign agent operations, particularly our Vietnam and South China furniture sourcing.
Our technology investments support our initiatives and allow us to elevate our service levels. In fiscal 2012,
these investments focused on e-commerce capabilities, global expansion, supply chain and our stores, and
enabled us to make our information technology output more scalable, which is critical to our future growth.
Finally, we remain committed to our stockholders and returning excess cash. In fiscal 2012, we returned
$242,927,000 in the form of share repurchases and dividends and, in March 2013, we announced that our Board
of Directors had authorized a 41% increase in our quarterly dividend to $0.31 per share and a new $750,000,000,
three-year stock repurchase program.
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