Williams-Sonoma, Inc. announces fourth quarter and fiscal year 2023 results
Q4 comparable brand revenue -6.8%
Q4 operating margin of 20.1%; Q4 diluted EPS of
Quarterly dividend increase of 26%; new stock repurchase authorization of
“We are pleased with our strong finish to 2023. We delivered an annual operating margin of 16.4% with full-year earnings per share of
Alber concluded, “We outperformed in 2023 despite the slowest housing market in several decades and geopolitical unrest. Although this pressured our top-line trend, we stayed focused on full-price selling, supply chain efficiencies, and best-in-class customer service. We have transformed our business model and as a result, we delivered an operating margin well ahead of our pre-pandemic profitability.”
FOURTH QUARTER 2023 HIGHLIGHTS
- Comparable brand revenue -6.8% with a 2-year comp -7.4% and a 4-year comp +29.1%.
-
Gross margin of 46.0% +480bps to LY with selling margin +560bps due to higher merchandise margins and lower costs from supply chain efficiencies, offset by occupancy deleverage of 80bps. Occupancy costs of
$208 million , +2.1% to LY.
-
SG&A rate of 25.9% +390bps to LY on a GAAP basis and +460bps to LY on a non-GAAP basis driven by employment and general expense deleverage. SG&A of
$591 million , +9.3% to LY on a GAAP basis and +13.0% to LY on a non-GAAP basis.
-
Operating income of
$458 million with an operating margin of 20.1%.
-
Diluted EPS of
$5.44 per share.
FISCAL YEAR 2023 HIGHLIGHTS
- Comparable brand revenue -9.9% with a 2-year comp -3.4% and a 4-year comp +35.6%.
-
Gross margin of 42.6%, +20bps to LY on a GAAP basis with selling margin +170bps due to higher merchandise margins and supply chain efficiencies, offset by occupancy deleverage of 150bps. Gross margin of 42.7%, +30bps to LY on a non-GAAP basis with selling margin +170bps due to higher merchandise margins and supply chain efficiencies, and occupancy deleverage of 140bps. Occupancy costs of
$814 million , +3.7% to LY on a GAAP basis and +3.6% on a non-GAAP basis.
-
SG&A rate of 26.6%, +150bps to LY on a GAAP basis and 26.3%, +140bps to LY on a non-GAAP basis, driven by employment and general expense deleverage. GAAP SG&A of
$2.1 billion , -5.5% to LY, and non-GAAP SG&A of$2.0 billion , -5.8% to LY.
-
GAAP operating income of
$1.24 billion with an operating margin of 16.1%; non-GAAP operating income of$1.27 billion with an operating margin of 16.4%.
-
GAAP diluted EPS of
$14.55 and non-GAAP diluted EPS of$14.85 .
-
Merchandise inventories -14.4% to LY to
$1.2 billion .
- ROIC of 45.0% driven by net earnings.
-
Maintained strong liquidity position of
$1.3 billion in cash and$1.7 billion in operating cash flow enabling the company to deliver returns to stockholders of$545 million through$313 million in stock repurchases and$232 million in dividends.
DIVIDENDS AND STOCK REPURCHASE AUTHORIZATIONS
-
Increased our quarterly dividend 26%, or
$0.23 , to$1.13 per share.
-
Expanded our stock repurchase capacity to
$1 billion , superseding the company's current stock repurchase authorization.
OUTLOOK
- In fiscal 2024, we expect annual net revenue growth in the range of -3% to +3% with comps in the range of -4.5% to +1.5%; and an operating margin between 16.5% to 16.8%.
- Fiscal 2024 is a 53-week year. Our financial statements will be prepared on a 53-week basis in fiscal 2024 and a 52-week basis in fiscal 2023. However, we will report comps on a 53-week versus 53-week comparable basis. All other year-over-year comparisons will be 53-weeks in fiscal 2024 versus 52-weeks in fiscal 2023. We expect the additional week in fiscal 2024 to contribute 150bps to revenue growth and 10bps to operating margin, both of which are reflected in our guidance.
- Over the long-term, we continue to expect mid-to-high single-digit annual net revenue growth with an operating margin in the mid-to-high teens.
CONFERENCE CALL AND WEBCAST INFORMATION
SEC REGULATION G — NON-GAAP INFORMATION
This press release includes non-GAAP financial measures. Exhibit 1 provides reconciliations of these non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, statements in the quotes of our President and Chief Executive Officer and our fiscal year 2024 outlook and long-term financial targets.
The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; the continuing impact of inflation and measures to control inflation, including changing interest rates, on consumer spending; war in
ABOUT
For more information on our sustainability efforts, please visit: https://sustainability.williams-sonomainc.com/
WSM-IR
Condensed Consolidated Statements of Earnings (unaudited) |
|||||||||||
|
For the Thirteen Weeks Ended |
||||||||||
|
|
|
|
||||||||
(In thousands, except per share amounts) |
$ |
|
% of
|
|
$ |
|
% of
|
||||
Net revenues |
$ |
2,278,937 |
|
100.0 |
% |
|
$ |
2,453,079 |
|
100.0 |
% |
Cost of goods sold |
|
1,230,322 |
|
54.0 |
|
|
|
1,443,229 |
|
58.8 |
|
Gross profit |
|
1,048,615 |
|
46.0 |
|
|
|
1,009,850 |
|
41.2 |
|
Selling, general and administrative expenses |
|
590,524 |
|
25.9 |
|
|
|
540,063 |
|
22.0 |
|
Operating income |
|
458,091 |
|
20.1 |
|
|
|
469,787 |
|
19.2 |
|
Interest income, net |
|
13,147 |
|
0.6 |
|
|
|
1,383 |
|
0.1 |
|
Earnings before income taxes |
|
471,238 |
|
20.7 |
|
|
|
471,170 |
|
19.2 |
|
Income taxes |
|
116,799 |
|
5.1 |
|
|
|
116,177 |
|
4.7 |
|
Net earnings |
$ |
354,439 |
|
15.6 |
% |
|
$ |
354,993 |
|
14.5 |
% |
Earnings per share (EPS): |
|
|
|
|
|
|
|
||||
Basic |
$ |
5.53 |
|
|
|
$ |
5.35 |
|
|
||
Diluted |
$ |
5.44 |
|
|
|
$ |
5.28 |
|
|
||
Shares used in calculation of EPS: |
|
|
|
|
|
|
|
||||
Basic |
|
64,143 |
|
|
|
|
66,349 |
|
|
||
Diluted |
|
65,147 |
|
|
|
|
67,201 |
|
|
||
4th Quarter Net Revenues and Comparable Brand Revenue Growth (Decline)1 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|||||
|
Net Revenues |
|
Comparable Brand Revenue
|
|
|||||||||
(In millions, except percentages) |
Q4 23 |
|
Q4 22 |
|
Q4 23 |
|
Q4 22 |
|
|||||
|
$ |
874 |
|
$ |
967 |
|
(9.6 |
) % |
|
5.8 |
% |
|
|
West Elm |
|
453 |
|
|
534 |
|
(15.3 |
) |
|
(10.7 |
) |
|
|
|
|
524 |
|
|
524 |
|
1.6 |
|
|
(2.5 |
) |
|
|
|
|
311 |
|
|
323 |
|
(2.5 |
) |
|
4.0 |
|
|
|
Other2 |
|
117 |
|
|
105 |
|
N/A |
|
|
N/A |
|
|
|
Total |
$ |
2,279 |
|
$ |
2,453 |
|
(6.8 |
) % |
|
(0.6 |
) % |
|
|
1 See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 13-week basis for Q4 2023 and Q4 2022, and includes business-to-business revenues. | |||||||||||||
2 Primarily consists of net revenues from Rejuvenation, our international franchise operations, Mark and Graham and GreenRow. |
|
||||||||||||
Condensed Consolidated Statements of Earnings (unaudited) |
|||||||||||
|
For the Fiscal Year Ended |
||||||||||
|
|
|
|
||||||||
(In thousands, except per share amounts) |
$ |
|
% of
|
|
$ |
|
% of
|
||||
Net revenues |
$ |
7,750,652 |
|
100.0 |
% |
|
$ |
8,674,417 |
|
100.0 |
% |
Cost of goods sold |
|
4,447,051 |
|
57.4 |
|
|
|
4,996,684 |
|
57.6 |
|
Gross profit |
|
3,303,601 |
|
42.6 |
|
|
|
3,677,733 |
|
42.4 |
|
Selling, general and administrative expenses |
|
2,059,408 |
|
26.6 |
|
|
|
2,179,311 |
|
25.1 |
|
Operating income |
|
1,244,193 |
|
16.1 |
|
|
|
1,498,422 |
|
17.3 |
|
Interest income, net |
|
29,162 |
|
0.4 |
|
|
|
2,260 |
|
— |
|
Earnings before income taxes |
|
1,273,355 |
|
16.4 |
|
|
|
1,500,682 |
|
17.3 |
|
Income taxes |
|
323,593 |
|
4.2 |
|
|
|
372,778 |
|
4.3 |
|
Net earnings |
$ |
949,762 |
|
12.3 |
% |
|
$ |
1,127,904 |
|
13.0 |
% |
Earnings per share (EPS): |
|
|
|
|
|
|
|
||||
Basic |
$ |
14.71 |
|
|
|
$ |
16.58 |
|
|
||
Diluted |
$ |
14.55 |
|
|
|
$ |
16.32 |
|
|
||
Shares used in calculation of EPS: |
|
|
|
|
|
|
|
||||
Basic |
|
64,574 |
|
|
|
|
68,021 |
|
|
||
Diluted |
|
65,272 |
|
|
|
|
69,100 |
|
|
||
Fiscal Year |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|||||
|
Net Revenues |
|
Comparable Brand Revenue
|
|
|||||||||
(In millions, except percentages) |
FY 23 |
|
FY 22 |
|
FY 23 |
|
FY 22 |
|
|||||
|
$ |
3,206 |
|
$ |
3,556 |
|
(9.7 |
) % |
|
14.9 |
% |
|
|
West Elm |
|
1,855 |
|
|
2,278 |
|
(18.8 |
) |
|
2.5 |
|
|
|
|
|
1,260 |
|
|
1,287 |
|
(0.7 |
) |
|
(1.7 |
) |
|
|
|
|
1,060 |
|
|
1,133 |
|
(5.5 |
) |
|
0.4 |
|
|
|
Other2 |
|
370 |
|
|
420 |
|
N/A |
|
|
N/A |
|
|
|
Total |
$ |
7,751 |
|
$ |
8,674 |
|
(9.9 |
) % |
|
6.5 |
% |
|
|
1 See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 52-week basis for fiscal 2023 and fiscal 2022, and includes business-to-business revenues. |
|
||||||||||||
2 Primarily consists of net revenues from Rejuvenation, our international franchise operations, Mark and Graham and GreenRow. |
|
||||||||||||
Condensed Consolidated Balance Sheets (unaudited) |
|||||||
|
As of |
||||||
(In thousands, except per share amounts) |
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
1,262,007 |
|
|
$ |
367,344 |
|
Accounts receivable, net |
|
122,914 |
|
|
|
115,685 |
|
Merchandise inventories, net |
|
1,246,369 |
|
|
|
1,456,123 |
|
Prepaid expenses |
|
59,466 |
|
|
|
64,961 |
|
Other current assets |
|
29,041 |
|
|
|
31,967 |
|
Total current assets |
|
2,719,797 |
|
|
|
2,036,080 |
|
Property and equipment, net |
|
1,013,189 |
|
|
|
1,065,381 |
|
Operating lease right-of-use assets |
|
1,229,650 |
|
|
|
1,286,452 |
|
Deferred income taxes, net |
|
110,656 |
|
|
|
81,389 |
|
|
|
77,306 |
|
|
|
77,307 |
|
Other long-term assets, net |
|
122,950 |
|
|
|
116,407 |
|
Total assets |
$ |
5,273,548 |
|
|
$ |
4,663,016 |
|
Liabilities and stockholders' equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
607,877 |
|
|
$ |
508,321 |
|
Accrued expenses |
|
264,306 |
|
|
|
247,594 |
|
Gift card and other deferred revenue |
|
573,904 |
|
|
|
479,229 |
|
Income taxes payable |
|
96,554 |
|
|
|
61,204 |
|
Operating lease liabilities |
|
234,517 |
|
|
|
231,965 |
|
Other current liabilities |
|
103,157 |
|
|
|
108,138 |
|
Total current liabilities |
|
1,880,315 |
|
|
|
1,636,451 |
|
Long-term operating lease liabilities |
|
1,156,104 |
|
|
|
1,211,693 |
|
Other long-term liabilities |
|
109,268 |
|
|
|
113,821 |
|
Total liabilities |
|
3,145,687 |
|
|
|
2,961,965 |
|
Stockholders' equity |
|
|
|
||||
Preferred stock: |
|
— |
|
|
|
— |
|
Common stock: |
|
642 |
|
|
|
663 |
|
Additional paid-in capital |
|
588,602 |
|
|
|
573,117 |
|
Retained earnings |
|
1,555,595 |
|
|
|
1,141,819 |
|
Accumulated other comprehensive loss |
|
(15,552 |
) |
|
|
(13,809 |
) |
|
|
(1,426 |
) |
|
|
(739 |
) |
Total stockholders' equity |
|
2,127,861 |
|
|
|
1,701,051 |
|
Total liabilities and stockholders' equity |
$ |
5,273,548 |
|
|
$ |
4,663,016 |
|
|
|
|
|
|
Retail Store Data (unaudited) |
|
||||||
|
|
|
|
|||||
|
|
Beginning of quarter |
|
|
End of quarter |
|
As of |
|
|
|
|
Openings |
Closings |
|
|
|
|
|
|
191 |
1 |
(8) |
184 |
|
188 |
|
|
|
163 |
— |
(7) |
156 |
|
165 |
|
|
West Elm |
123 |
— |
(2) |
121 |
|
122 |
|
|
|
46 |
— |
— |
46 |
|
46 |
|
|
Rejuvenation |
10 |
1 |
— |
11 |
|
9 |
|
|
Total |
533 |
2 |
(17) |
518 |
|
530 |
|
|
|
|
||||||
Condensed Consolidated Statements of Cash Flows (unaudited) |
|||||||
|
For the Fiscal Year Ended |
||||||
(In thousands) |
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net earnings |
$ |
949,762 |
|
|
$ |
1,127,904 |
|
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
232,590 |
|
|
|
214,153 |
|
Loss on disposal/impairment of assets |
|
21,869 |
|
|
|
25,116 |
|
Non-cash lease expense |
|
255,286 |
|
|
|
231,350 |
|
Deferred income taxes |
|
(29,085 |
) |
|
|
(23,823 |
) |
Stock-based compensation expense |
|
84,754 |
|
|
|
90,268 |
|
Other |
|
(2,796 |
) |
|
|
(2,339 |
) |
Changes in: |
|
|
|
||||
Accounts receivable |
|
(7,461 |
) |
|
|
15,687 |
|
Merchandise inventories |
|
209,168 |
|
|
|
(208,908 |
) |
Prepaid expenses and other assets |
|
1,016 |
|
|
|
(11,823 |
) |
Accounts payable |
|
99,043 |
|
|
|
(113,521 |
) |
Accrued expenses and other liabilities |
|
4,935 |
|
|
|
(61,995 |
) |
Gift card and other deferred revenue |
|
95,005 |
|
|
|
31,839 |
|
Operating lease liabilities |
|
(269,162 |
) |
|
|
(242,855 |
) |
Income taxes payable |
|
35,349 |
|
|
|
(18,231 |
) |
Net cash provided by operating activities |
|
1,680,273 |
|
|
|
1,052,822 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(188,458 |
) |
|
|
(354,117 |
) |
Other |
|
201 |
|
|
|
162 |
|
Net cash used in investing activities |
|
(188,257 |
) |
|
|
(353,955 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repurchases of common stock |
|
(313,001 |
) |
|
|
(880,038 |
) |
Payment of dividends |
|
(232,475 |
) |
|
|
(217,345 |
) |
Tax withholdings related to stock-based awards |
|
(52,831 |
) |
|
|
(81,290 |
) |
Net cash used in financing activities |
|
(598,307 |
) |
|
|
(1,178,673 |
) |
Effect of exchange rates on cash and cash equivalents |
|
954 |
|
|
|
(3,188 |
) |
Net increase (decrease) in cash and cash equivalents |
|
894,663 |
|
|
|
(482,994 |
) |
Cash and cash equivalents at beginning of period |
|
367,344 |
|
|
|
850,338 |
|
Cash and cash equivalents at end of period |
$ |
1,262,007 |
|
|
$ |
367,344 |
|
Exhibit 1 |
||||||||||||||||||||||||
|
GAAP to Non-GAAP Reconciliation (unaudited) |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
For the Thirteen Weeks Ended |
|
For the Fiscal Year Ended |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
(In thousands, except per share data) |
$ |
% of
|
|
$ |
% of
|
|
$ |
% of
|
|
$ |
% of
|
|
|||||||||||
|
Occupancy costs |
$ |
208,020 |
9.1 |
% |
|
$ |
203,715 |
|
8.3 |
% |
|
$ |
814,290 |
|
10.5 |
% |
|
$ |
785,425 |
|
9.1 |
% |
|
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
(239 |
) |
|
|
|
— |
|
|
|
||||
|
Non-GAAP occupancy costs |
$ |
208,020 |
9.1 |
% |
|
$ |
203,715 |
|
8.3 |
% |
|
$ |
814,051 |
|
10.5 |
% |
|
$ |
785,425 |
|
9.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Gross profit |
$ |
1,048,615 |
46.0 |
% |
|
$ |
1,009,850 |
|
41.2 |
% |
|
$ |
3,303,601 |
|
42.6 |
% |
|
$ |
3,677,733 |
|
42.4 |
% |
|
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
2,141 |
|
|
|
|
— |
|
|
|
||||
|
Non-GAAP gross profit |
$ |
1,048,615 |
46.0 |
% |
|
$ |
1,009,850 |
|
41.2 |
% |
|
$ |
3,305,742 |
|
42.7 |
% |
|
$ |
3,677,733 |
|
42.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Selling, general and administrative expenses |
$ |
590,524 |
25.9 |
% |
|
$ |
540,063 |
|
22.0 |
% |
|
$ |
2,059,408 |
|
26.6 |
% |
|
$ |
2,179,311 |
|
25.1 |
% |
|
|
Impairment of Aperture2 |
|
— |
|
|
|
(17,687 |
) |
|
|
|
— |
|
|
|
|
(17,687 |
) |
|
|
||||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
(15,790 |
) |
|
|
|
— |
|
|
|
||||
|
Reduction-in-force Initiatives3 |
|
— |
|
|
|
— |
|
|
|
|
(8,316 |
) |
|
|
|
— |
|
|
|
||||
|
Non-GAAP selling, general and administrative expenses |
$ |
590,524 |
25.9 |
% |
|
$ |
522,376 |
|
21.3 |
% |
|
$ |
2,035,302 |
|
26.3 |
% |
|
$ |
2,161,624 |
|
24.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Operating income |
$ |
458,091 |
20.1 |
% |
|
$ |
469,787 |
|
19.2 |
% |
|
$ |
1,244,193 |
|
16.1 |
% |
|
$ |
1,498,422 |
|
17.3 |
% |
|
|
Impairment of Aperture2 |
|
— |
|
|
|
17,687 |
|
|
|
|
— |
|
|
|
|
17,687 |
|
|
|
||||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
17,931 |
|
|
|
|
— |
|
|
|
||||
|
Reduction-in-force Initiatives3 |
|
— |
|
|
|
— |
|
|
|
|
8,316 |
|
|
|
|
— |
|
|
|
||||
|
Non-GAAP operating income |
$ |
458,091 |
20.1 |
% |
|
$ |
487,474 |
|
19.9 |
% |
|
$ |
1,270,440 |
|
16.4 |
% |
|
$ |
1,516,109 |
|
17.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
$ |
Tax rate |
|
$ |
Tax rate |
|
$ |
Tax rate |
|
$ |
Tax rate |
|
|||||||||||
|
Income taxes |
$ |
116,799 |
24.8 |
% |
|
$ |
116,177 |
|
24.7 |
% |
|
$ |
323,593 |
|
25.4 |
% |
|
$ |
372,778 |
|
24.8 |
% |
|
|
Impairment of Aperture2 |
|
— |
|
|
|
2,840 |
|
|
|
|
— |
|
|
|
|
2,840 |
|
|
|
||||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
4,690 |
|
|
|
|
— |
|
|
|
||||
|
Reduction-in-force Initiatives3 |
|
— |
|
|
|
— |
|
|
|
|
2,174 |
|
|
|
|
— |
|
|
|
||||
|
Non-GAAP income taxes |
$ |
116,799 |
24.8 |
% |
|
$ |
119,017 |
|
24.4 |
% |
|
$ |
330,457 |
|
25.4 |
% |
|
$ |
375,618 |
|
24.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Diluted EPS |
$ |
5.44 |
|
|
$ |
5.28 |
|
|
|
$ |
14.55 |
|
|
|
$ |
16.32 |
|
|
|
||||
|
Impairment of Aperture2 |
|
— |
|
|
|
0.22 |
|
|
|
|
— |
|
|
|
|
0.21 |
|
|
|
||||
|
Exit Costs1 |
|
— |
|
|
|
— |
|
|
|
|
0.20 |
|
|
|
|
— |
|
|
|
||||
|
Reduction-in-force Initiatives3 |
|
— |
|
|
|
— |
|
|
|
|
0.09 |
|
|
|
|
— |
|
|
|
||||
|
Non-GAAP diluted EPS4 |
$ |
5.44 |
|
|
$ |
5.50 |
|
|
|
$ |
14.85 |
|
|
|
$ |
16.54 |
|
|
|
||||
|
1 During Q1 2023, we incurred exit costs of |
|
||||||||||||||||||||||
Return on
We believe ROIC is a useful financial measure for investors in evaluating the efficient and effective use of capital, and is an important component of long-term shareholder return.
The following table presents the calculation of ROIC, together with a reconciliation of net earnings to non-GAAP net operating profit after tax ("NOPAT"):
|
For the Fiscal Year Ended |
||
(In thousands) |
|
||
Net earnings |
$ |
949,762 |
|
Interest income, net |
|
(29,162 |
) |
Income taxes |
|
323,593 |
|
Operating income |
|
1,244,193 |
|
Exit Costs 1 |
|
17,931 |
|
Reduction-in-force Initiatives 1 |
|
8,316 |
|
Operating lease costs |
|
296,779 |
|
Adjusted Operating Income |
|
1,567,219 |
|
Income tax adjustment 2 |
|
(398,074 |
) |
NOPAT (numerator) |
$ |
1,169,145 |
|
|
|||
1 For more information on the nature of these adjustments, see the footnotes to the GAAP to Non-GAAP Reconciliation. |
|||
2 Adjustment reflects a hypothetical provision for income taxes on adjusted operating income, using the Company's effective tax rate of 25.4%. |
|||
|
As of |
|
|
||||||||
(In thousands) |
|
|
|
|
Average |
||||||
Total assets |
$ |
5,273,548 |
|
|
$ |
4,663,016 |
|
|
|
||
Total current liabilities |
|
(1,880,315 |
) |
|
|
(1,636,451 |
) |
|
|
||
Cash in excess of |
|
(1,062,007 |
) |
|
|
(167,344 |
) |
|
|
||
Invested capital (denominator) |
$ |
2,331,226 |
|
|
$ |
2,859,221 |
|
|
$ |
2,595,224 |
|
|
|
|
|
|
|
||||||
Return on invested capital |
|
|
|
|
|
45.0 |
% |
SEC Regulation G – Non-GAAP Information
These tables include non-GAAP occupancy costs, gross profit, gross margin, selling, general and administrative expense, operating income, Adjusted Operating Income, operating margin, income taxes, effective tax rate and diluted EPS. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240313523576/en/
Jeff Howie EVP, Chief Financial Officer – (415) 402 4324
Source: