Pottery Barn 2013 Annual Report Download - page 5

To Our Stockholders,
Fiscal 2013 was yet another year of record performance for our company. Net revenues increased to $4.388
billion, and diluted earnings per share reached $2.82. Comparable brand revenue growth was 8.8%, and West
Elm crossed the half billion dollar mark with net revenues of $531 million. The strength of our brands – Pottery
Barn, Pottery Barn Kids, PBteen, Williams-Sonoma, West Elm, Rejuvenation and Mark and Graham – across our
retail and e-commerce channels, in conjunction with the quality of our associates and executive leadership,
enabled our team to drive record operating results.
Our strategic plans call for continued growth in all of our brands. As we continue to focus on these plans, global
expansion and new business developments continue to present exciting and important growth vehicles. Our
global vision is to serve our customers with the same high service, multi-channel model that has differentiated us
in the United States. During fiscal 2013, we opened new retail stores in Australia and the United Kingdom, and
launched fully enabled e-commerce and distribution capabilities in those markets. We also announced a new
franchise partner in the Philippines and continued expansion in the Middle East through our franchise partner.
Our new business, Mark and Graham, completed its first full year in operation in fiscal 2013, and Rejuvenation
continued to expand its product assortment during the year.
In fiscal 2013, we made progress on our long-term supply chain initiative by insourcing furniture delivery hubs
in three geographies and further regionalizing our retail fulfillment capabilities. We also expanded our U.S.
upholstered furniture manufacturing operations and our personalization capabilities. We expect that these supply
chain initiatives will allow us to reduce costs and improve service to our customers.
We also continued to focus on investing in technology to support our multi-channel business and redefine the
customer experience. We believe that our technology investments are fundamental to support our growth and
create stockholder value for the long term. In fiscal 2013, our e-commerce revenue was $1.949 billion and
represented 44% of our total net revenues. We believe that the investments made in our brands, our user interface
and our fulfillment infrastructure have enabled us to benefit from this shift online.
We are grateful to our stockholders for your ongoing confidence in our company. On your behalf, I would like to
thank my fellow Board members for their continued support and guidance. I would also like to thank Mary Ann
Casati, who is not standing for re-election upon expiration of her current term, for her dedicated service to the
company and her contributions to our Board deliberations. I also thank our customers, vendors and other business
partners for their support. I particularly wish to express our deep appreciation to our President and Chief
Executive Officer, Laura Alber, her executive team, and all of our associates for their dedicated efforts this past
year. Without them, none of this would have been possible.
We look forward to continued success in 2014 and beyond.
Adrian D.P. Bellamy
Chairman of the Board of Directors
Stockholders Letters