Pottery Barn 2014 Annual Report Download - page 5

To Our Stockholders,
On behalf of the Board of Directors, I am pleased to report that fiscal 2014 was yet another year of
record performance for our company. Net revenues reached $4.7 billion, with 7.1% comparable brand
revenue growth, and diluted earnings per share grew 15% to $3.24. In fiscal 2014, we experienced
growth in all of our brands – Pottery Barn, Williams-Sonoma, West Elm, Pottery Barn Kids, PBteen,
Rejuvenation, and Mark and Graham – across both our retail and e-commerce channels. Our highly-
profitable e-commerce business represented over 50% of total revenue.
Our Board is focused on creating long-term value for our stockholders. In fiscal 2014, our company
made progress against its strategic growth initiatives, including strengthening our brands, expanding
globally, developing new businesses, investing in our supply chain and investing in e-commerce. Our
innovative, exclusive products and our high-service multi-channel model, along with brand-specific
initiatives, led to strong performance in our established and emerging brands. We continued to increase
our global presence by opening new stores in Australia and expanding our network of franchised stores.
Our franchise partners now operate 28 stores in the Middle East and 2 stores in the Philippines, and we
signed an agreement with a new franchise partner to operate stores and e-commerce websites in Mexico.
In our supply chain, we completed the insourcing of our foreign buying offices and further insourced
our furniture delivery operations. Finally, we continued to invest in technology to support our multi-
channel platform and implemented technology enhancements to improve customer service and advance
the flexibility and capacity of our e-commerce platform.
We remain 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 Michael Lynch, who is not standing for reelection upon expiration of his current term, for
his many years of dedicated service to the company. Michael has advised the company since our initial
public offering in 1983, and he has served as a valuable member of the Board for the past 15 years. His
contributions will be missed. 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 continuing to deliver results and
drive our long-term strategic growth initiatives. Without them, none of this would have been possible.
We look forward to continued success in 2015 and beyond.
Adrian D.P. Bellamy
Chairman of the Board of Directors
Stockholders Letters