Pottery Barn 2014 Annual Report Download - page 131

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Our Values
Everything we do revolves around our mission to enhance our customers’ lives at home. We are committed to
quality and service, and delivering an inspiring retail experience. Our core values include:
People First
We believe that our company has no limit and is driven by our associates and their imagination. We are
committed to an environment that attracts, motivates and recognizes high performance.
Customers
We are here to please our customers – without them, nothing else matters.
Quality
We take pride in everything we do. From our people to our products, and in our relationships with business
partners and our community, quality is our signature.
Stockholders
We are committed to providing a superior return to our stockholders. It’s everyone’s job.
Integrity
We do business with the highest level of integrity. Every day, in everything we do.
Corporate Responsibility
We will build sustainability into every corner of our enterprise so that our continued financial success will
enhance the lives of our many stakeholders, the communities where we have a business presence and the natural
environment upon which we rely.
Fiscal 2014 Performance Highlights
Fiscal 2014 was another year of strong performance for our company. We experienced growth in all of our
brands and across our channels, highlighted by our highly profitable e-commerce business, which grew to over
50% of our total revenue. Fiscal 2014 financial achievements included:
• Annualized total stockholder return of 46% and 32% over the last 1- and 3-year periods, respectively.
• Net revenues increased to $4.699 billion.
• Diluted earnings per share reached $3.24.
• E-commerce net revenues grew 12.1% and generated over 50% of our total net revenues in fiscal 2014
versus 48% in fiscal 2013.
• Returned over $350 million to our stockholders through stock repurchases and dividends.
At the same time, we made progress against our long-term strategic growth initiatives. Highlights of our fiscal
2014 achievements include:
•Strengthening our brands – Comparable brand revenue growth across our business in fiscal 2014 was
7.1%, on top of 8.8% growth in fiscal 2013. Our innovative, exclusive products and our high-service
multi-channel model, along with brand-specific initiatives, led to our strong performance.
•Laying the foundation for global expansion and new business development – Our franchise partners
currently operate 28 stores in the Middle East and 2 stores in the Philippines, and we signed an agreement
for a new franchise partner to operate stores and e-commerce websites in Mexico. In Australia, our first
major entry with company-owned stores, we have opened 13 stores to date and plan to open more in
2015. Our newest businesses – Rejuvenation and Mark and Graham – together grew 30% in fiscal 2014,
and are examples of how we can leverage our extensive data analytics capabilities to identify prospective
customers and build profitable brands quickly.
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