Pottery Barn 2013 Annual Report Download - page 8

Pottery Barn had another successful year in fiscal 2013, as we executed against our strategy to be the
leading specialty home furnishings retailer in the world. Key to this strategy is our accessible approach
to decorating and our capabilities in product design and lifestyle merchandising. We look forward to
building on our momentum in 2014, when we plan to broaden our assortment, offer greater aesthetic
variation to our customers, and make the process of buying furniture easier and faster.
Both the Pottery Barn Kids and PBteen brands also had a successful year in fiscal 2013, and we see
opportunity for both brands to continue to grow. Pottery Barn Kids will continue to introduce new
collections and build its product line, concentrating on core categories from home furnishings to
furniture. PBteen has learned how to effectively use collaborations to drive traffic and sales, and we
have several new and impactful collaborations planned for 2014.
The Williams-Sonoma brand made significant progress in fiscal 2013, and we are excited about the
opportunities ahead of us. We gained traction on our key initiatives of improved execution at retail,
powerful integrated marketing, innovative and exclusive products, and our own branded lines. Our new
and exclusive Williams-Sonoma Open Kitchen collection, launched in January 2014, is already driving
new customers to the brand, and we believe it represents a meaningful opportunity for us. Our direct
business continues to be strong and is providing the customer with exceptional products, including the
new and expanded Williams-Sonoma Home line. We look forward to continuing to execute our key
strategies in 2014 in support of the brand’s future growth and success.
West Elm had a record year and exceeded the half billion dollar milestone, with $531 million in revenue
in fiscal 2013. The brand remains focused on creating a personalized and differentiated experience
under the pillars of its strategic priorities: choice, community and consciousness. Choice refers to the
continued growth and evolution of West Elm’s product assortment and services. Community remains a
priority as the brand creates engaging experiences that bridge the on and offline worlds, and deepen the
customer’s connection to our shared values. In 2014, West Elm will continue to define conscious retail,
working with artisan groups around the world to scale their business and growing the brand’s assortment
of sustainably produced products.
Rejuvenation serves as a general store of functional and beautiful goods for home improvement projects.
In 2014, the brand will continue to expand its product assortment and increase the relevancy of its
offerings. Mark and Graham completed its first full year of business in fiscal 2013, and we have
continued to grow its offerings. The brand aims to elevate the gift giving experience with its innovative
approach to monogramming.
This year also marks our third Corporate Responsibility Report, sharing our commitment to sustainable
business practices. Last year we published our first Corporate Responsibility Scorecard, allowing for
meaningful comparison of our progress year to year. We believe that our responsibility as a company
extends to every part of our business, from the making of our products to how we value our associates,
contribute to the community, and interact with our customers. Our sense of responsibility informs our
values, policies, culture, and most importantly, our actions. We are constantly working to achieve our
business goals while improving our social and environmental performance.
As a public company, we also remain committed to returning value to stockholders. 2013 marked the
first year of our $750 million, three-year stock repurchase program, and we returned over $350 million
to our stockholders through dividends and stock repurchases. In addition, we recently announced a 6%
increase in our annual dividend.