Pottery Barn 2012 Annual Report Download - page 41

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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 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 2012
(53 Weeks) % Total
Fiscal 2011
(52 Weeks) % Total
Fiscal 2010
(52 Weeks) % Total
Direct-to-customer net revenues $1,869,386 46.2% $1,632,811 43.9% $1,452,572 41.5%
Retail net revenues 2,173,484 53.8% 2,088,084 56.1% 2,051,586 58.5%
Net revenues $4,042,870 100.0% $3,720,895 100.0% $3,504,158 100.0%
Net revenues in fiscal 2012, including the impact of the additional week of net revenues in fiscal 2012, increased
by $321,975,000, or 8.7%, compared to fiscal 2011. This increase was driven by growth of 6.1% in comparable
brand revenue, including e-commerce net revenue growth of 17.4% within the direct-to-customer channel, and a
2.3% increase in comparable store sales. Increased net revenues during fiscal 2012 were driven by the Pottery
Barn, West Elm and Pottery Barn Kids brands.
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.
The following table summarizes our net revenues by brand for fiscal 2012, fiscal 2011 and fiscal 2010.
Dollars in thousands
Fiscal 2012
(53 Weeks)
Fiscal 2011
(52 Weeks)
Fiscal 2010
(52 Weeks)
Pottery Barn $1,752,997 $1,600,847 $1,511,029
Williams-Sonoma 980,709 994,425 1,006,086
Pottery Barn Kids 557,516 521,565 487,647
West Elm 430,099 335,980 259,936
PBteen 220,081 212,270 197,635
Other 101,468 55,808 41,825
Total $4,042,870 $3,720,895 $3,504,158
Comparable Brand Revenue
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 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.
27
Form 10-K