Williams-Sonoma (WSM) 10-Q2 Sep 222022 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jul. 31, 2022	Aug. 28, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2022
Document Transition Report	false
Entity File Number	001-14077
Entity Registrant Name	WILLIAMS-SONOMA, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-2203880
Entity Address, Address Line One	3250 Van Ness Avenue
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94109
City Area Code	415
Local Phone Number	421-7900
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	WSM
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		66,711,363
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000719955
Current Fiscal Year End Date	--01-29

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Income Statement [Abstract]
Net revenues	$ 2,137,537	$ 1,948,339	$ 4,028,764	$ 3,697,368
Cost of goods sold	1,208,728	1,089,951	2,271,407	2,086,127
Gross profit	928,809	858,388	1,757,357	1,611,241
Selling, general and administrative expenses	563,288	535,288	1,068,355	1,012,964
Operating income	365,521	323,100	689,002	598,277
Interest (income) expense, net	(344)	(39)	(507)	1,833
Earnings before income taxes	365,865	323,139	689,509	596,444
Income taxes	98,790	77,069	168,321	122,572
Net earnings	$ 267,075	$ 246,070	$ 521,188	$ 473,872
Basic earnings per share (in USD per share)	$ 3.92	$ 3.29	$ 7.50	$ 6.29
Diluted earnings per share (in USD per share)	$ 3.87	$ 3.21	$ 7.36	$ 6.11
Shares used in calculation of earnings per share:
Basic (in shares)	68,180	74,786	69,516	75,293
Diluted (in shares)	69,081	76,584	70,844	77,516

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Statement of Comprehensive Income [Abstract]
Net earnings	$ 267,075	$ 246,070	$ 521,188	$ 473,872
Other comprehensive income (loss):
Foreign currency translation adjustments	(1,385)	(3,522)	(2,899)	178
Change in fair value of derivative financial instruments	26	65	119	(600)
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax (tax benefit) of $2, $(126), $8, and $(181)	(5)	337	(23)	490
Comprehensive income	$ 265,711	$ 242,950	$ 518,385	$ 473,940

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Statement of Comprehensive Income [Abstract]
Change in fair value of derivative financial instruments, tax	$ 9	$ 25	$ 42	$ (216)
Reclassification adjustment for realized (gain) loss on derivative financial instruments, tax	$ 2	$ (126)	$ 8	$ (181)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2022	Jan. 30, 2022	Aug. 01, 2021
Current assets
Cash and cash equivalents	$ 124,944	$ 850,338	$ 655,211
Accounts receivable, net	133,500	131,683	141,814
Merchandise inventories, net	1,542,428	1,246,372	1,170,561
Prepaid expenses	102,312	69,252	85,587
Other current assets	25,537	26,249	20,537
Total current assets	1,928,721	2,323,894	2,073,710
Property and equipment, net	973,676	920,773	875,295
Operating lease right-of-use assets	1,174,354	1,132,764	1,052,617
Deferred income taxes, net	52,897	56,585	58,848
Goodwill	85,269	85,354	85,421
Other long-term assets, net	104,257	106,250	99,146
Total assets	4,319,174	4,625,620	4,245,037
Current liabilities
Accounts payable	680,097	612,512	601,879
Accrued expenses	244,559	319,924	224,089
Gift card and other deferred revenue	498,354	447,770	403,409
Income taxes payable	87,159	79,554	61,335
Operating lease liabilities	206,931	217,409	213,784
Other current liabilities	93,945	94,517	74,331
Total current liabilities	1,811,045	1,771,686	1,578,827
Deferred lease incentives	14,725	16,360	18,359
Long-term operating lease liabilities	1,115,501	1,066,839	994,165
Other long-term liabilities	99,624	106,528	126,967
Total liabilities	3,040,895	2,961,413	2,718,318
Stockholders’ equity
Preferred stock: $0.01 par value; 7,500 shares authorized; none issued	0	0	0
Common stock: $0.01 par value; 253,125 shares authorized; 67,057, 71,982 and 74,426 shares issued and outstanding at July 31, 2022, January 30, 2022 and August 1, 2021, respectively	671	720	745
Additional paid-in capital	541,895	600,942	569,734
Retained earnings	750,083	1,074,084	964,000
Accumulated other comprehensive loss	(13,631)	(10,828)	(7,049)
Treasury stock, at cost: 1, 4 and 4 shares as of July 31, 2022, January 30, 2022 and August 1, 2021, respectively	(739)	(711)	(711)
Total stockholders’ equity	1,278,279	1,664,207	1,526,719
Total liabilities and stockholders’ equity	$ 4,319,174	$ 4,625,620	$ 4,245,037

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 31, 2022	Jan. 30, 2022	Aug. 01, 2021
Stockholders’ equity
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	7,500,000	7,500,000	7,500,000
Preferred stock, shares issued (in shares)	0	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	253,125,000	253,125,000	253,125,000
Common stock, shares issued (in shares)	67,057,000	71,982,000	74,426,000
Common stock, shares outstanding (in shares)	67,057,000	71,982,000	74,426,000
Treasury stock (in shares)	1,000	4,000	4,000

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands		Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning Balance (in shares) at Jan. 31, 2021			76,340,000
Beginning Balance at Jan. 31, 2021		$ 1,651,185	$ 764	$ 638,375	$ 1,019,762	$ (7,117)	$ (599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		227,802			227,802
Foreign currency translation adjustments		3,700				3,700
Change in fair value of derivative financial instruments, net of tax		(665)				(665)
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax		153				153
Conversion/release of stock-based awards (in shares)			686,000
Conversion/release of stock-based awards		(98,451)	$ 7	(97,958)			(500)
Repurchases of common stock (in shares)			(1,791,000)
Repurchases of common stock		(315,529)	$ (18)	(9,239)	(306,272)
Reissuance of treasury stock under stock-based compensation plans		0		(344)	(44)		388
Stock-based compensation expense		25,471		25,471
Dividends declared		(46,370)			(46,370)
Ending Balance (in shares) at May. 02, 2021			75,235,000
Ending Balance at May. 02, 2021		1,447,296	$ 753	556,305	894,878	(3,929)	(711)
Beginning Balance (in shares) at Jan. 31, 2021			76,340,000
Beginning Balance at Jan. 31, 2021		1,651,185	$ 764	638,375	1,019,762	(7,117)	(599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		473,872
Foreign currency translation adjustments		178
Change in fair value of derivative financial instruments, net of tax		(600)
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax		490
Ending Balance (in shares) at Aug. 01, 2021			74,426,000
Ending Balance at Aug. 01, 2021		1,526,719	$ 745	569,734	964,000	(7,049)	(711)
Beginning Balance (in shares) at May. 02, 2021			75,235,000
Beginning Balance at May. 02, 2021		1,447,296	$ 753	556,305	894,878	(3,929)	(711)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		246,070			246,070
Foreign currency translation adjustments		(3,522)				(3,522)
Change in fair value of derivative financial instruments, net of tax		65				65
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax		337				337
Conversion/release of stock-based awards (in shares)			25,000
Conversion/release of stock-based awards		(1,709)		(1,709)
Repurchases of common stock (in shares)			(834,000)
Repurchases of common stock		(135,859)	$ (8)	(4,358)	(131,493)
Stock-based compensation expense		19,496		19,496
Dividends declared		(45,455)			(45,455)
Ending Balance (in shares) at Aug. 01, 2021			74,426,000
Ending Balance at Aug. 01, 2021		1,526,719	$ 745	569,734	964,000	(7,049)	(711)
Beginning Balance (in shares) at Jan. 30, 2022			71,982,000
Beginning Balance at Jan. 30, 2022		1,664,207	$ 720	600,942	1,074,084	(10,828)	(711)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		254,113			254,113
Foreign currency translation adjustments		(1,514)				(1,514)
Change in fair value of derivative financial instruments, net of tax		93				93
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax		(18)				(18)
Conversion/release of stock-based awards (in shares)	[1]		617,000
Conversion/release of stock-based awards	[1]	(78,508)	$ 6	(78,142)			(372)
Repurchases of common stock (in shares)			(3,380,000)
Repurchases of common stock		(501,075)	$ (33)	(18,590)	(482,452)
Reissuance of treasury stock under stock-based compensation plans	[1]	0		(344)			344
Stock-based compensation expense		28,339		28,339
Dividends declared		(55,893)			(55,893)
Ending Balance (in shares) at May. 01, 2022			69,219,000
Ending Balance at May. 01, 2022		1,309,744	$ 693	532,205	789,852	(12,267)	(739)
Beginning Balance (in shares) at Jan. 30, 2022			71,982,000
Beginning Balance at Jan. 30, 2022		1,664,207	$ 720	600,942	1,074,084	(10,828)	(711)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		521,188
Foreign currency translation adjustments		(2,899)
Change in fair value of derivative financial instruments, net of tax		119
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax		(23)
Ending Balance (in shares) at Jul. 31, 2022			67,057,000
Ending Balance at Jul. 31, 2022		1,278,279	$ 671	541,895	750,083	(13,631)	(739)
Beginning Balance (in shares) at May. 01, 2022			69,219,000
Beginning Balance at May. 01, 2022		1,309,744	$ 693	532,205	789,852	(12,267)	(739)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		267,075			267,075
Foreign currency translation adjustments		(1,385)				(1,385)
Change in fair value of derivative financial instruments, net of tax		26				26
Reclassification adjustment for realized (gain) loss on derivative financial instruments, net of tax		(5)				(5)
Conversion/release of stock-based awards (in shares)	[1]		26,000
Conversion/release of stock-based awards	[1]	(767)		(767)
Repurchases of common stock (in shares)			(2,188,000)
Repurchases of common stock		(265,349)	$ (22)	(12,519)	(252,808)
Stock-based compensation expense		22,976		22,976
Dividends declared		(54,036)			(54,036)
Ending Balance (in shares) at Jul. 31, 2022			67,057,000
Ending Balance at Jul. 31, 2022		$ 1,278,279	$ 671	$ 541,895	$ 750,083	$ (13,631)	$ (739)

[1]Amounts are shown net of shares withheld for employee taxes.

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2022	Aug. 01, 2021
Cash flows from operating activities:
Net earnings	$ 521,188	$ 473,872
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	102,455	96,687
Loss on disposal/impairment of assets	5,413	455
Amortization of deferred lease incentives	(1,635)	(2,254)
Non-cash lease expense	110,511	105,739
Deferred income taxes	(7,636)	(7,037)
Tax benefit related to stock-based awards	10,828	10,302
Stock-based compensation expense	51,743	46,260
Other	154	(274)
Changes in:
Accounts receivable	(1,985)	2,002
Merchandise inventories	(295,458)	(163,621)
Prepaid expenses and other assets	(30,585)	(4,622)
Accounts payable	59,404	48,457
Accrued expenses and other liabilities	(78,895)	(43,653)
Gift card and other deferred revenue	50,503	30,308
Operating lease liabilities	(120,036)	(108,791)
Income taxes payable	7,623	(8,162)
Net cash provided by operating activities	383,592	475,668
Cash flows from investing activities:
Purchases of property and equipment	(148,548)	(78,281)
Other	86	97
Net cash used in investing activities	(148,462)	(78,184)
Cash flows from financing activities:
Repurchases of common stock	(766,424)	(451,388)
Payment of dividends	(112,674)	(91,069)
Tax withholdings related to stock-based awards	(79,275)	(100,160)
Repayment of long-term debt	0	(300,000)
Net cash used in financing activities	(958,373)	(942,617)
Effect of exchange rates on cash and cash equivalents	(2,151)	7
Net decrease in cash and cash equivalents	(725,394)	(545,126)
Cash and cash equivalents at beginning of period	850,338	1,200,337
Cash and cash equivalents at end of period	$ 124,944	$ 655,211

FINANCIAL STATEMENTS - BASIS OF

FINANCIAL STATEMENTS - BASIS OF PRESENTATION	6 Months Ended
FINANCIAL STATEMENTS - BASIS OF PRESENTATION	Jul. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
FINANCIAL STATEMENTS - BASIS OF PRESENTATION	FINANCIAL STATEMENTS - BASIS OF PRESENTATION These financial statements include Williams-Sonoma, Inc. and its wholly owned subsidiaries (“we,” “us” or “our”). The Condensed Consolidated Balance Sheets as of July 31, 2022 and August 1, 2021, the Condensed Consolidated Statements of Earnings, the Condensed Consolidated Statements of Comprehensive Income, and the Condensed Consolidated Statements of Stockholders’ Equity for the thirteen and twenty-six weeks then ended and the Condensed Consolidated Statements of Cash Flows for the twenty-six weeks then ended, have been prepared by us, and have not been audited. In our opinion, the financial statements include all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at the balance sheet dates and the results of operations for the thirteen and twenty-six weeks then ended. Intercompany transactions and accounts have been eliminated in our consolidation. The balance sheet as of January 30, 2022, presented herein, has been derived from our audited Consolidated Balance Sheet included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2022. The results of operations for the thirteen and twenty-six weeks ended July 31, 2022 are not necessarily indicative of the operating results of the full year. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. These financial statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2022. During fiscal 2021 and continuing through the first half of fiscal 2022, global supply chain disruptions, including COVID-19 related factory closures and increased port congestion, caused delays in inventory receipts, increased raw material costs, and higher shipping-related charges. We expect these supply chain challenges to continue through the second half of fiscal 2022 and into the first half of fiscal 2023, which could negatively impact our business. New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The ASU is intended to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance provides optional expedients and scope exceptions for transactions if certain criteria are met. These transactions include contract modifications, hedge accounting, and the sale or transfer of debt securities classified as held-to-maturity. We may elect to apply the provisions of the new standard prospectively through December 31, 2022. Unlike other topics, the provisions of this update are only available until December 31, 2022, by which time the reference rate replacement activity is expected to be completed. We have yet to elect an adoption date, but do not believe the adoption would have a material impact on our financial condition, results of operations or cash flows.

BORROWING ARRANGEMENTS

BORROWING ARRANGEMENTS	6 Months Ended
BORROWING ARRANGEMENTS	Jul. 31, 2022
Debt Disclosure [Abstract]
BORROWING ARRANGEMENTS	BORROWING ARRANGEMENTS Credit Facility We have a credit facility (the "Credit Facility") which provides for a $500 million unsecured revolving line of credit (the “Revolver”). Our Revolver may be used to borrow revolving loans or request the issuance of letters of credit. We may, upon notice to the administrative agent, request existing or new lenders, at such lenders’ option, to increase the Revolver by up to $250 million to provide for a total of $750 million of unsecured revolving credit. During the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, we had no borrowings under our Revolver. Additionally, as of July 31, 2022, issued but undrawn standby letters of credit of $11.3 million were outstanding under our Revolver. The standby letters of credit were primarily issued to secure the liabilities associated with workers’ compensation and other insurance programs. Our Revolver matures on September 30, 2026, at which time all outstanding borrowings must be repaid and all outstanding letters of credit must be cash collateralized. We may elect to extend the maturity date, subject to lender approval. The interest rate applicable to our Revolver is variable and may be elected by us as: (i) the LIBOR (or future alternative rate) plus an applicable margin based on our leverage ratio ranging, from 0.91% to 1.775% or (ii) a base rate as defined in our Credit Facility, plus an applicable margin based on our leverage ratio, ranging from 0% to 0.775%. Our Credit Facility contains certain restrictive loan covenants, including, among others, a financial covenant requiring a maximum leverage ratio (funded debt adjusted for operating lease liabilities to earnings before interest, income tax, depreciation, amortization and rent expense), and covenants limiting our ability to incur indebtedness, grant liens, make acquisitions, merge or consolidate, and dispose of assets. As of July 31, 2022, we were in compliance with our financial covenants under our Credit Facility and, based on current projections, we expect to remain in compliance throughout the next 12 months. Letter of Credit Facilities We have three unsecured letter of credit reimbursement facilities aggregating to $35.0 million. Our letter of credit facilities contain covenants that are consistent with our Credit Facility. Interest on unreimbursed amounts under our letter of credit facilities accrues at a base rate as defined in our Credit Facility, plus an applicable margin based on our leverage ratio. As of July 31, 2022, the aggregate amount outstanding under our letter of credit facilities was $6.4 million, which represents only a future commitment to fund inventory purchases to which we had not taken legal title. On August 19, 2022, we renewed all three of our letter of credit facilities on substantially similar terms. Two of the letter of credit facilities totaling $30.0 million mature on August 19, 2023, and the latest expiration date possible for future letters of credit issued under these facilities is January 16, 2024. One of the letter of credit facilities totaling $5.0 million matures on September 30, 2026, which is also the latest expiration date possible for future letters of credit issued under the facility.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
STOCK-BASED COMPENSATION	Jul. 31, 2022
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Equity Award Programs Our Amended and Restated 2001 Long-Term Incentive Plan (the “Plan”) provides for grants of incentive stock options, nonqualified stock options, stock-settled stock appreciation rights, restricted stock awards, restricted stock units (including those that are performance-based), deferred stock awards (collectively, “stock awards”) and dividend equivalents up to an aggregate of 42.7 million shares. As of July 31, 2022, there were approximately 6.1 million shares available for future grant. Awards may be granted under our Plan to officers, employees and non-employee members of the Board of Directors of the Company (the “Board”) or any parent or subsidiary. Shares issued as a result of award exercises or releases are primarily funded with the issuance of new shares. Stock Awards Annual grants of stock awards are limited to one million shares on a per person basis. Stock awards granted to employees generally vest evenly over a period of four years for service-based awards. Certain performance-based awards, which have variable payout conditions based on predetermined financial targets, generally vest three years from the date of grant. Certain stock awards and other agreements contain vesting acceleration clauses which cover events including, but not limited to, retirement, disability, death, merger or a similar corporate event. Stock awards granted to non-employee Board members generally vest in one year. Non-employee Board members automatically receive stock awards on the date of their initial election to the Board and annually thereafter on the date of the annual meeting of stockholders (so long as they continue to serve as a non-employee Board member). Non-employee directors may also elect, on terms prescribed by the Company, to receive all of their annual cash compensation to be earned in respect of the applicable fiscal year (or the last two quarters thereof in the case of fiscal 2021) either in the form of (i) fully vested stock units or (ii) fully vested deferred stock units. Stock-Based Compensation Expense During the thirteen and twenty-six weeks ended July 31, 2022, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses of $23.2 million and $51.7 million, respectively. During the thirteen and twenty-six weeks ended August 1, 2021, we recognized total stock-based compensation expense, as a component of selling, general and administrative expenses of $20.0 million and $46.3 million, respectively.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
EARNINGS PER SHARE	Jul. 31, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding and common stock equivalents outstanding for the period. Common stock equivalents consist of shares subject to stock-based awards to the extent their inclusion would be dilutive. The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: (In thousands, except per share amounts) Net Earnings Weighted Earnings Thirteen weeks ended July 31, 2022 Basic $ 267,075 68,180 $ 3.92 Effect of dilutive stock-based awards 901 Diluted $ 267,075 69,081 $ 3.87 Thirteen weeks ended August 1, 2021 Basic $ 246,070 74,786 $ 3.29 Effect of dilutive stock-based awards 1,798 Diluted $ 246,070 76,584 $ 3.21 Twenty-six weeks ended July 31, 2022 Basic $ 521,188 69,516 $ 7.50 Effect of dilutive stock-based awards 1,328 Diluted $ 521,188 70,844 $ 7.36 Twenty-six weeks ended August 1, 2021 Basic $ 473,872 75,293 $ 6.29 Effect of dilutive stock-based awards 2,223 Diluted $ 473,872 77,516 $ 6.11 The effect of anti-dilutive stock-based awards was not material for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
SEGMENT REPORTING	Jul. 31, 2022
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING We identify our operating segments according to how our business activities are managed and evaluated. Each of our brands are operating segments. Because they share similar economic and other qualitative characteristics, we have aggregated our operating segments into a single reportable segment. The following table summarizes our net revenues by brand for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021. For the Thirteen Weeks Ended For the Twenty-six Weeks Ended (In thousands) July 31, 2022 August 1, 2021 July 31, 2022 August 1, 2021 Pottery Barn $ 879,107 $ 732,323 $ 1,653,753 $ 1,411,378 West Elm 607,918 579,636 1,144,211 1,056,953 Williams Sonoma 248,611 255,455 500,831 521,062 Pottery Barn Kids and Teen 284,162 273,937 511,131 510,004 Other 1 117,739 106,988 218,838 197,971 Total 2 $ 2,137,537 $ 1,948,339 $ 4,028,764 $ 3,697,368 1 Primarily consists of net revenues from our international franchise operations, Rejuvenation, and Mark and Graham. 2 Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $113.3 million and $116.1 million for the thirteen weeks ended July 31, 2022 and August 1, 2021, respectively, and approximately $208.3 million and $216.0 million for the twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively. Long-lived assets by geographic location are as follows: As of (In thousands) July 31, 2022 1 August 1, 2021 1 U.S. $ 2,268,961 $ 2,021,577 International 121,492 149,750 Total $ 2,390,453 $ 2,171,327 1 Includes total goodwill, deferred tax assets and intangibles of $148.5 million and $154.7 million as of July 31, 2022 and August 1, 2021, respectively, of which $135.0 million and $143.3 million, respectively, is related to the U.S.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Jul. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIESWe are involved in lawsuits, claims and proceedings incident to the ordinary course of our business. These disputes, which are not currently material, are increasing in number as our business expands and our company grows. We review the need for any loss contingency reserves and establish reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. In view of the inherent difficulty of predicting the outcome of these matters, it may not be possible to determine whether any loss is probable or to reasonably estimate the amount of the loss until the case is close to resolution, in which case no reserve is established until that time. Any claims against us, whether meritorious or not, could result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits, claims and proceedings cannot be predicted with certainty. However, we believe that the ultimate resolution of these current matters will not have a material adverse effect on our Condensed Consolidated Financial Statements taken as a whole.

STOCK REPURCHASE PROGRAM AND DI

STOCK REPURCHASE PROGRAM AND DIVIDENDS	6 Months Ended
STOCK REPURCHASE PROGRAM AND DIVIDENDS	Jul. 31, 2022
Equity [Abstract]
STOCK REPURCHASE PROGRAM AND DIVIDENDS	STOCK REPURCHASE PROGRAM AND DIVIDENDS Stock Repurchase Program During the thirteen weeks ended July 31, 2022, we repurchased 2,188,037 shares of our common stock at an average cost of $121.27 per share for a total cost of $265.3 million. During the twenty-six weeks ended July 31, 2022, we repurchased 5,567,768 shares of our common stock at an average cost of $137.65 per share for a total cost of $766.4 million. As of July 31, 2022, there was $803.6 million remaining under our current stock repurchase program. During the thirteen weeks ended August 1, 2021, we repurchased 834,294 shares of our common stock at an average cost of $162.84 per share for a total cost of $135.9 million. During the twenty-six weeks ended August 1, 2021, we repurchased 2,625,019 shares of our common stock at an average cost of $171.96 per share for a total cost of $451.4 million. Stock repurchased by the Company is typically cancelled after purchasing. However, we hold some shares in treasury to satisfy future stock-based award settlements in certain foreign jurisdictions. We held treasury stock of $0.7 million as of July 31, 2022 and August 1, 2021. Stock repurchases under our program may be made through open market and privately negotiated transactions at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. Dividends We declared cash dividends of $0.78 and $0.59 per common share during the thirteen weeks ended July 31, 2022 and August 1, 2021, respectively. We declared cash dividends of $1.56 and $1.18 per common share during the twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively. Our quarterly cash dividend may be limited or terminated at any time.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS	Jul. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTS We have retail and e-commerce businesses in Canada, Australia and the United Kingdom, and operations throughout Asia and Europe, which expose us to market risk associated with foreign currency exchange rate fluctuations. Substantially all of our purchases and sales are denominated in U.S. dollars, which limits our exposure to this risk. However, some of our foreign operations have a functional currency other than the U.S. dollar. To mitigate this risk, we hedge a portion of our foreign currency exposure with foreign currency forward contracts in accordance with our risk management policies. We do not enter into such contracts for speculative purposes. The assets or liabilities associated with the derivative financial instruments are measured at fair value and recorded in either other current assets or other current liabilities. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on whether the derivative financial instrument is designated as a hedge and qualifies for hedge accounting in accordance with ASC 815, Derivatives and Hedging . Cash Flow Hedges We enter into foreign currency forward contracts designated as cash flow hedges (to sell Canadian dollars and purchase U.S. dollars) for forecasted inventory purchases in U.S. dollars by our Canadian subsidiary. These hedges have terms of up to 12 months. All hedging relationships are formally documented, and the forward contracts are designed to mitigate foreign currency exchange risk on hedged transactions. We record the effective portion of changes in the fair value of our cash flow hedges in other comprehensive income (“OCI”) until the earlier of when the hedged forecasted inventory purchase occurs or the respective contract reaches maturity. Subsequently, as the inventory is sold to the customer, we reclassify amounts previously recorded in OCI to cost of goods sold. Changes in the fair value of the forward contract related to interest charges (or forward points) are excluded from the assessment and measurement of hedge effectiveness and are recorded in cost of goods sold. Based on the rates in effect as of July 31, 2022, our reclassification of pre-tax gains or losses from OCI to cost of goods sold over the next 12 months is not expected to be material. We had foreign currency forward contracts outstanding (in U.S. dollars) with notional amounts of $18.0 million and $19.5 million as of July 31, 2022 and August 1, 2021, respectively. Hedge effectiveness is evaluated prospectively at inception, on an ongoing basis, as well as retrospectively using regression analysis. Any measurable ineffectiveness of the hedge is recorded in selling, general and administrative expenses. No gain or loss was recognized for cash flow hedges due to hedge ineffectiveness and all hedges were deemed effective for assessment purposes for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021. The effect of derivative instruments in our Condensed Consolidated Financial Statements from gains or losses recognized in income was not material for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021. The fair values of our derivative financial instruments are presented in other current assets and/or other current liabilities in our Condensed Consolidated Balance Sheets. All fair values were measured using Level 2 inputs as defined by the fair value hierarchy described in Note I. We record all derivative assets and liabilities on a gross basis. They do not meet the balance sheet netting criteria as discussed in ASC 210, Balance Sheet , because we do not have master netting agreements established with our derivative counterparties that would allow for net settlement.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
FAIR VALUE MEASUREMENTS	Jul. 31, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy established by ASC 820, Fair Value Measurement , which defines three levels of inputs that may be used to measure fair value, as follows: • Level 1: inputs which include quoted prices in active markets for identical assets or liabilities; • Level 2: inputs which include observable inputs other than Level 1 inputs, such as quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and • Level 3: inputs which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. The fair values of our cash and cash equivalents are based on Level 1 inputs, which include quoted prices in active markets for identical assets. Foreign Currency Derivatives and Hedging Instruments We use the income approach to value our derivatives using observable Level 2 market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the assets and liabilities, which include interest rates and credit risk ratings. We use mid-market pricing as a practical expedient for fair value measurements. Key inputs for foreign currency derivatives are the spot rates, forward rates, interest rates and credit derivative market rates. The counterparties associated with our foreign currency forward contracts are large credit-worthy financial institutions, and the derivatives transacted with these entities are relatively short in duration, therefore, we do not consider counterparty concentration and non-performance to be material risks at this time. Both we and our counterparties are expected to perform under the contractual terms of the instruments. None of the derivative contracts we entered into are subject to credit risk-related contingent features or collateral requirements. Long-lived Assets We review the carrying value of all long-lived assets for impairment, primarily at an individual store level, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We measure property and equipment at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. We measure right-of-use assets on a nonrecurring basis using Level 2 inputs that are corroborated by market data. Where Level 2 inputs are not readily available, we use Level 3 inputs. Fair value of these long-lived assets is based on the present value of estimated future cash flows using a discount rate commensurate with the risk. The significant unobservable inputs used in the fair value measurement of our store assets are sales growth/decline, gross margin, employment costs, lease escalations, market rental rates, changes in local real estate markets in which we operate, inflation and the overall economics of the retail industry. Significant fluctuations in any of these inputs individually could significantly impact our measurement of fair value. During the thirteen and twenty-six weeks ended July 31, 2022, we recognized impairment charges of $2.6 million related to the impairment of property and equipment and $2.6 million related to the impairment of operating lease right-of-use assets, due to lower projected revenues and fair market values resulting from underperforming stores in Australia. During the thirteen and twenty-six weeks ended August 1, 2021, no impairment charges were recognized. There were no transfers in and out of Level 3 categories during the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Jul. 31, 2022
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: (In thousands) Foreign Currency Cash Flow Accumulated Other Balance at January 30, 2022 $ (10,886) $ 58 $ (10,828) Foreign currency translation adjustments (1,514) — (1,514) Change in fair value of derivative financial instruments — 93 93 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (18) (18) Other comprehensive income (loss) (1,514) 75 (1,439) Balance at May 1, 2022 $ (12,400) $ 133 $ (12,267) Foreign currency translation adjustments (1,385) — (1,385) Change in fair value of derivative financial instruments — 26 26 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (5) (5) Other comprehensive income (loss) (1,385) 21 (1,364) Balance at July 31, 2022 $ (13,785) $ 154 $ (13,631) Balance at January 31, 2021 $ (6,398) $ (719) $ (7,117) Foreign currency translation adjustments 3,700 — 3,700 Change in fair value of derivative financial instruments — (665) (665) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 153 153 Other comprehensive income (loss) 3,700 (512) 3,188 Balance at May 2, 2021 $ (2,698) $ (1,231) $ (3,929) Foreign currency translation adjustments (3,522) — (3,522) Change in fair value of derivative financial instruments — 65 65 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 337 337 Other comprehensive income (loss) (3,522) 402 (3,120) Balance at August 1, 2021 $ (6,220) $ (829) $ (7,049)

REVENUE

REVENUE	6 Months Ended
REVENUE	Jul. 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Merchandise Sales The majority of our revenues are generated from sales of merchandise to our customers through our e-commerce websites, at our retail stores and through our direct mail catalogs, and include shipping fees received from customers for delivery of merchandise to their homes. The remainder of our revenues are primarily generated from sales to our franchisees and wholesale transactions, incentives received from credit card issuers in connection with our private label and co-branded credit cards and breakage income related to stored-value cards. Revenues from sales of merchandise are recognized at a point in time when control of merchandise is transferred to the customer. Merchandise can either be picked up in our stores or delivered to the customer. For merchandise picked up in the store, control is transferred at the time of the sale to the customer. For merchandise delivered to the customer, control is transferred either when delivery has been completed, or when we have a present right to payment which, for certain merchandise, occurs upon conveyance of the merchandise to the carrier for delivery. We exclude from revenue any taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and are concurrent with revenue-generating activities. Our payment terms are primarily at the point of sale for merchandise sales and for most services. We have elected to account for shipping and handling as fulfillment activities, and not as a separate performance obligation. Revenue from the sale of merchandise is reported net of sales returns. We estimate future returns based on historical return trends together with current product sales performance. As of July 31, 2022 and August 1, 2021, we recorded a liability for expected sales returns of approximately $45.7 million and $28.3 million, respectively, within other current liabilities and a corresponding asset for the expected net realizable value of the merchandise inventory to be returned of approximately $13.9 million and $7.8 million, respectively, within other current assets in our Condensed Consolidated Balance Sheet. See Note E for the disclosure of our net revenues by operating segment. Gift Card and Other Deferred Revenue We defer revenue and record a liability when cash payments are received in advance of satisfying performance obligations, primarily associated with our merchandise sales, stored-value cards, customer loyalty programs, and incentives received from credit card issuers. We issue stored-value cards that may be redeemed on future merchandise purchases. Our stored-value cards have no expiration dates. Revenue from stored-value cards is recognized at a point in time upon redemption of the card and as control of the merchandise is transferred to the customer. Revenue from estimated unredeemed stored-value cards (“breakage”) is recognized in a manner consistent with our historical redemption patterns over the estimated period of redemption of our cards of approximately four years, the majority of which is recognized within one year of the card issuance. Breakage revenue is not material to our Condensed Consolidated Financial Statements. We have customer loyalty programs, which allow members to earn points for each qualifying purchase. Customers can earn points through spend on both our private label and co-branded credit cards, or can earn points as part of our non-credit card related loyalty program. Points earned through both loyalty programs enable members to receive certificates that may be redeemed on future merchandise purchases. This customer option is a material right and, accordingly, represents a separate performance obligation to the customer. The allocated consideration for the points or certificates earned by our loyalty program members is deferred based on the standalone selling price of the points and recorded within gift card and other deferred revenue within our Condensed Consolidated Balance Sheet. The measurement of standalone selling prices takes into consideration the discount the customer would receive in a separate transaction for the delivered item, as well as our estimate of certificates expected to be issued and redeemed, based on historical patterns. This measurement is applied to our portfolio of performance obligations for points or certificates earned, as all obligations have similar economic characteristics. We believe the impact to our Condensed Consolidated Financial Statements would not be materially different if this measurement was applied to each individual performance obligation. Revenue is recognized for these performance obligations at a point in time when certificates are redeemed by the customer. These obligations relate to contracts with terms less than one year, as our certificates generally expire within six months from issuance. We enter into agreements with credit card issuers in connection with our private label and co-branded credit cards, whereby we receive cash incentives in exchange for promised services, such as licensing our brand names and marketing the credit card program to customers. These separate non-loyalty program related services promised under these agreements are interrelated and are thus considered a single performance obligation. Revenue is recognized over time as we transfer promised services throughout the contract term. As of July 31, 2022 and August 1, 2021, we had recorded $501.8 million and $406.5 million, respectively, for gift card and other deferred revenue in our Condensed Consolidated Balance Sheets, substantially all of which is expected to be recognized into revenue within the next 12 months.

FINANCIAL STATEMENTS - BASIS _2

FINANCIAL STATEMENTS - BASIS OF PRESENTATION (Policies)	6 Months Ended
FINANCIAL STATEMENTS - BASIS OF PRESENTATION (Policies)	Jul. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The ASU is intended to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance provides optional expedients and scope exceptions for transactions if certain criteria are met. These transactions include contract modifications, hedge accounting, and the sale or transfer of debt securities classified as held-to-maturity. We may elect to apply the provisions of the new standard prospectively through December 31, 2022. Unlike other topics, the provisions of this update are only available until December 31, 2022, by which time the reference rate replacement activity is expected to be completed. We have yet to elect an adoption date, but do not believe the adoption would have a material impact on our financial condition, results of operations or cash flows.
Cash Flow Hedges	Cash Flow Hedges We enter into foreign currency forward contracts designated as cash flow hedges (to sell Canadian dollars and purchase U.S. dollars) for forecasted inventory purchases in U.S. dollars by our Canadian subsidiary. These hedges have terms of up to 12 months. All hedging relationships are formally documented, and the forward contracts are designed to mitigate foreign currency exchange risk on hedged transactions. We record the effective portion of changes in the fair value of our cash flow hedges in other comprehensive income (“OCI”) until the earlier of when the hedged forecasted inventory purchase occurs or the respective contract reaches maturity. Subsequently, as the inventory is sold to the customer, we reclassify amounts previously recorded in OCI to cost of goods sold.
Fair Value Measurements	Foreign Currency Derivatives and Hedging Instruments We use the income approach to value our derivatives using observable Level 2 market data at the measurement date and standard valuation techniques to convert future amounts to a single present value amount, assuming that participants are motivated but not compelled to transact. Level 2 inputs are limited to quoted prices that are observable for the assets and liabilities, which include interest rates and credit risk ratings. We use mid-market pricing as a practical expedient for fair value measurements. Key inputs for foreign currency derivatives are the spot rates, forward rates, interest rates and credit derivative market rates. The counterparties associated with our foreign currency forward contracts are large credit-worthy financial institutions, and the derivatives transacted with these entities are relatively short in duration, therefore, we do not consider counterparty concentration and non-performance to be material risks at this time. Both we and our counterparties are expected to perform under the contractual terms of the instruments. None of the derivative contracts we entered into are subject to credit risk-related contingent features or collateral requirements. Long-lived Assets We review the carrying value of all long-lived assets for impairment, primarily at an individual store level, whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We measure property and equipment at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. We measure right-of-use assets on a nonrecurring basis using Level 2 inputs that are corroborated by market data. Where Level 2 inputs are not readily available, we use Level 3 inputs. Fair value of these long-lived assets is based on the present value of estimated future cash flows using a discount rate commensurate with the risk. The significant unobservable inputs used in the fair value measurement of our store assets are sales growth/decline, gross margin, employment costs, lease escalations, market rental rates, changes in local real estate markets in which we operate, inflation and the overall economics of the retail industry. Significant fluctuations in any of these inputs individually could significantly impact our measurement of fair value. During the thirteen and twenty-six weeks ended July 31, 2022, we recognized impairment charges of $2.6 million related to the impairment of property and equipment and $2.6 million related to the impairment of operating lease right-of-use assets, due to lower projected revenues and fair market values resulting from underperforming stores in Australia. During the thirteen and twenty-six weeks ended August 1, 2021, no impairment charges were recognized.
Revenue	Merchandise Sales The majority of our revenues are generated from sales of merchandise to our customers through our e-commerce websites, at our retail stores and through our direct mail catalogs, and include shipping fees received from customers for delivery of merchandise to their homes. The remainder of our revenues are primarily generated from sales to our franchisees and wholesale transactions, incentives received from credit card issuers in connection with our private label and co-branded credit cards and breakage income related to stored-value cards. Revenues from sales of merchandise are recognized at a point in time when control of merchandise is transferred to the customer. Merchandise can either be picked up in our stores or delivered to the customer. For merchandise picked up in the store, control is transferred at the time of the sale to the customer. For merchandise delivered to the customer, control is transferred either when delivery has been completed, or when we have a present right to payment which, for certain merchandise, occurs upon conveyance of the merchandise to the carrier for delivery. We exclude from revenue any taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and are concurrent with revenue-generating activities. Our payment terms are primarily at the point of sale for merchandise sales and for most services. We have elected to account for shipping and handling as fulfillment activities, and not as a separate performance obligation. Gift Card and Other Deferred Revenue We defer revenue and record a liability when cash payments are received in advance of satisfying performance obligations, primarily associated with our merchandise sales, stored-value cards, customer loyalty programs, and incentives received from credit card issuers. We issue stored-value cards that may be redeemed on future merchandise purchases. Our stored-value cards have no expiration dates. Revenue from stored-value cards is recognized at a point in time upon redemption of the card and as control of the merchandise is transferred to the customer. Revenue from estimated unredeemed stored-value cards (“breakage”) is recognized in a manner consistent with our historical redemption patterns over the estimated period of redemption of our cards of approximately four years, the majority of which is recognized within one year of the card issuance. Breakage revenue is not material to our Condensed Consolidated Financial Statements. We have customer loyalty programs, which allow members to earn points for each qualifying purchase. Customers can earn points through spend on both our private label and co-branded credit cards, or can earn points as part of our non-credit card related loyalty program. Points earned through both loyalty programs enable members to receive certificates that may be redeemed on future merchandise purchases. This customer option is a material right and, accordingly, represents a separate performance obligation to the customer. The allocated consideration for the points or certificates earned by our loyalty program members is deferred based on the standalone selling price of the points and recorded within gift card and other deferred revenue within our Condensed Consolidated Balance Sheet. The measurement of standalone selling prices takes into consideration the discount the customer would receive in a separate transaction for the delivered item, as well as our estimate of certificates expected to be issued and redeemed, based on historical patterns. This measurement is applied to our portfolio of performance obligations for points or certificates earned, as all obligations have similar economic characteristics. We believe the impact to our Condensed Consolidated Financial Statements would not be materially different if this measurement was applied to each individual performance obligation. Revenue is recognized for these performance obligations at a point in time when certificates are redeemed by the customer. These obligations relate to contracts with terms less than one year, as our certificates generally expire within six months from issuance. We enter into agreements with credit card issuers in connection with our private label and co-branded credit cards, whereby we receive cash incentives in exchange for promised services, such as licensing our brand names and marketing the credit card program to customers. These separate non-loyalty program related services promised under these agreements are interrelated and are thus considered a single performance obligation. Revenue is recognized over time as we transfer promised services throughout the contract term.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
EARNINGS PER SHARE (Tables)	Jul. 31, 2022
Earnings Per Share [Abstract]
Reconciliation of Net Earnings and Number of Shares Used In Basic and Diluted Earnings per Share Computations	The following is a reconciliation of net earnings and the number of shares used in the basic and diluted earnings per share computations: (In thousands, except per share amounts) Net Earnings Weighted Earnings Thirteen weeks ended July 31, 2022 Basic $ 267,075 68,180 $ 3.92 Effect of dilutive stock-based awards 901 Diluted $ 267,075 69,081 $ 3.87 Thirteen weeks ended August 1, 2021 Basic $ 246,070 74,786 $ 3.29 Effect of dilutive stock-based awards 1,798 Diluted $ 246,070 76,584 $ 3.21 Twenty-six weeks ended July 31, 2022 Basic $ 521,188 69,516 $ 7.50 Effect of dilutive stock-based awards 1,328 Diluted $ 521,188 70,844 $ 7.36 Twenty-six weeks ended August 1, 2021 Basic $ 473,872 75,293 $ 6.29 Effect of dilutive stock-based awards 2,223 Diluted $ 473,872 77,516 $ 6.11

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
SEGMENT REPORTING (Tables)	Jul. 31, 2022
Segment Reporting [Abstract]
Segment Information	The following table summarizes our net revenues by brand for the thirteen and twenty-six weeks ended July 31, 2022 and August 1, 2021. For the Thirteen Weeks Ended For the Twenty-six Weeks Ended (In thousands) July 31, 2022 August 1, 2021 July 31, 2022 August 1, 2021 Pottery Barn $ 879,107 $ 732,323 $ 1,653,753 $ 1,411,378 West Elm 607,918 579,636 1,144,211 1,056,953 Williams Sonoma 248,611 255,455 500,831 521,062 Pottery Barn Kids and Teen 284,162 273,937 511,131 510,004 Other 1 117,739 106,988 218,838 197,971 Total 2 $ 2,137,537 $ 1,948,339 $ 4,028,764 $ 3,697,368 1 Primarily consists of net revenues from our international franchise operations, Rejuvenation, and Mark and Graham. 2 Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom and our franchise businesses) of approximately $113.3 million and $116.1 million for the thirteen weeks ended July 31, 2022 and August 1, 2021, respectively, and approximately $208.3 million and $216.0 million for the twenty-six weeks ended July 31, 2022 and August 1, 2021, respectively.
Summary of Long-lived Assets by Geographic Areas	Long-lived assets by geographic location are as follows: As of (In thousands) July 31, 2022 1 August 1, 2021 1 U.S. $ 2,268,961 $ 2,021,577 International 121,492 149,750 Total $ 2,390,453 $ 2,171,327 1 Includes total goodwill, deferred tax assets and intangibles of $148.5 million and $154.7 million as of July 31, 2022 and August 1, 2021, respectively, of which $135.0 million and $143.3 million, respectively, is related to the U.S.

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	Jul. 31, 2022
Equity [Abstract]
Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax	Changes in accumulated other comprehensive income (loss) by component, net of tax, are as follows: (In thousands) Foreign Currency Cash Flow Accumulated Other Balance at January 30, 2022 $ (10,886) $ 58 $ (10,828) Foreign currency translation adjustments (1,514) — (1,514) Change in fair value of derivative financial instruments — 93 93 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (18) (18) Other comprehensive income (loss) (1,514) 75 (1,439) Balance at May 1, 2022 $ (12,400) $ 133 $ (12,267) Foreign currency translation adjustments (1,385) — (1,385) Change in fair value of derivative financial instruments — 26 26 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — (5) (5) Other comprehensive income (loss) (1,385) 21 (1,364) Balance at July 31, 2022 $ (13,785) $ 154 $ (13,631) Balance at January 31, 2021 $ (6,398) $ (719) $ (7,117) Foreign currency translation adjustments 3,700 — 3,700 Change in fair value of derivative financial instruments — (665) (665) Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 153 153 Other comprehensive income (loss) 3,700 (512) 3,188 Balance at May 2, 2021 $ (2,698) $ (1,231) $ (3,929) Foreign currency translation adjustments (3,522) — (3,522) Change in fair value of derivative financial instruments — 65 65 Reclassification adjustment for realized (gain) loss on derivative financial instruments 1 — 337 337 Other comprehensive income (loss) (3,522) 402 (3,120) Balance at August 1, 2021 $ (6,220) $ (829) $ (7,049)

BORROWING ARRANGEMENTS (Details

BORROWING ARRANGEMENTS (Details)	3 Months Ended	6 Months Ended
BORROWING ARRANGEMENTS (Details)	Jul. 31, 2022 USD ($) facility	Jul. 31, 2022 USD ($) facility	Aug. 01, 2021 USD ($)	Aug. 19, 2022 USD ($) facility
Debt Instrument [Line Items]
Outstanding letter of credit facilities	$ 6,400,000	$ 6,400,000
Standby Letters of Credit
Debt Instrument [Line Items]
Amount issued but undrawn under credit facility	$ 11,300,000	$ 11,300,000
Letter of Credit Facility Renewed and Extended
Debt Instrument [Line Items]
Number of facilities \| facility	3	3
Maximum borrowing capacity of letter of credit after renewal	$ 35,000,000	$ 35,000,000
Letter of Credit Facility Renewed and Extended \| Subsequent Event
Debt Instrument [Line Items]
Number of facilities \| facility				3
Letter Of Credit Facility Maturing August 2023 \| Subsequent Event
Debt Instrument [Line Items]
Number of facilities \| facility				2
Maximum borrowing capacity of letter of credit after renewal				$ 30,000,000
Letter Of Credit Facility Maturing September 2026 \| Subsequent Event
Debt Instrument [Line Items]
Number of facilities \| facility				1
Maximum borrowing capacity of letter of credit after renewal				$ 5,000,000
Unsecured Revolving Line of Credit
Debt Instrument [Line Items]
Current borrowing capacity	500,000,000	500,000,000
Additional borrowing capacity	250,000,000	250,000,000
Maximum borrowing capacity including additional borrowing capacity	750,000,000	750,000,000
Borrowings under revolving line of credit	$ 0	$ 0	$ 0
Unsecured Revolving Line of Credit \| Margin Based on Leverage Ratio \| Minimum
Debt Instrument [Line Items]
Leverage ratio		0.91%
Unsecured Revolving Line of Credit \| Margin Based on Leverage Ratio \| Maximum
Debt Instrument [Line Items]
Leverage ratio		1.775%
Unsecured Revolving Line of Credit \| Base Rate \| Minimum
Debt Instrument [Line Items]
Leverage ratio		0%
Unsecured Revolving Line of Credit \| Base Rate \| Maximum
Debt Instrument [Line Items]
Leverage ratio		0.775%

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years			4 years
Stock-based compensation expense			$ 51,743	$ 46,260
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 23,200	$ 20,000	$ 51,700	$ 46,300
Minimum \| Non-Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years			1 year
Equity Award Programs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares under the plan (in shares)	42,700,000		42,700,000
Shares available for future grant (in shares)	6,100,000		6,100,000
Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards annual grant limit (in shares)			1,000,000,000,000
Performance Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of awards granted to employees, years			3 years

EARNINGS PER SHARE - Reconcilia

EARNINGS PER SHARE - Reconciliation of Net Earnings and Number of Shares Used in Basic and Diluted Earnings Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Net Earnings
Basic	$ 267,075	$ 246,070	$ 521,188	$ 473,872
Diluted	$ 267,075	$ 246,070	$ 521,188	$ 473,872
Weighted Average Shares
Basic (in shares)	68,180	74,786	69,516	75,293
Effect of dilutive stock-based awards (in shares)	901	1,798	1,328	2,223
Diluted (in shares)	69,081	76,584	70,844	77,516
Earnings Per Share, Basic
Basic (in USD per share)	$ 3.92	$ 3.29	$ 7.50	$ 6.29
Earnings Per Share, Diluted
Diluted (in USD per share)	$ 3.87	$ 3.21	$ 7.36	$ 6.11

SEGMENT REPORTING - Net Revenue

SEGMENT REPORTING - Net Revenues by Segment (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022 USD ($)	Aug. 01, 2021 USD ($)	Jul. 31, 2022 USD ($) segment	Aug. 01, 2021 USD ($)
Segment Reporting Information [Line Items]
Total	$ 2,137,537	$ 1,948,339	$ 4,028,764	$ 3,697,368
Number of segments \| segment			1
International
Segment Reporting Information [Line Items]
Total	113,300	116,100	$ 208,300	216,000
Pottery Barn
Segment Reporting Information [Line Items]
Total	879,107	732,323	1,653,753	1,411,378
West Elm
Segment Reporting Information [Line Items]
Total	607,918	579,636	1,144,211	1,056,953
Williams Sonoma
Segment Reporting Information [Line Items]
Total	248,611	255,455	500,831	521,062
Pottery Barn Kids and Teen
Segment Reporting Information [Line Items]
Total	284,162	273,937	511,131	510,004
Other
Segment Reporting Information [Line Items]
Total	$ 117,739	$ 106,988	$ 218,838	$ 197,971

SEGMENT REPORTING - Summary of

SEGMENT REPORTING - Summary of Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Aug. 01, 2021
Segment Reporting Information [Line Items]
Long-lived assets	$ 2,390,453	$ 2,171,327
Goodwill, deferred tax assets and intangibles	148,500	154,700
U.S.
Segment Reporting Information [Line Items]
Long-lived assets	2,268,961	2,021,577
Goodwill, deferred tax assets and intangibles	135,000	143,300
International
Segment Reporting Information [Line Items]
Long-lived assets	$ 121,492	$ 149,750

STOCK REPURCHASE PROGRAM AND _2

STOCK REPURCHASE PROGRAM AND DIVIDENDS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021	Jan. 30, 2022
Equity [Abstract]
Common stock repurchased (in shares)	2,188,037	834,294	5,567,768	2,625,019
Common stock repurchased, average cost per share (in USD per share)	$ 121.27	$ 162.84	$ 137.65	$ 171.96
Common stock repurchased, total cost	$ 265,300	$ 135,900	$ 766,424	$ 451,388
Stock repurchase program, remaining authorized repurchase amount	803,600		803,600
Treasury stock	$ 739	$ 711	$ 739	$ 711	$ 711
Cash dividends declared per common share (in USD per share)	$ 0.78	$ 0.59	$ 1.56	$ 1.18

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain (loss) on cash flow hedging instruments	$ 0	$ 0	$ 0	$ 0

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS - Foreign Currency Forward Contracts Outstanding with Notional Values (Details) - USD ($) $ in Millions	Jul. 31, 2022	Aug. 01, 2021
Foreign Exchange Contract \| Derivatives designated as hedging instruments \| Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	$ 18	$ 19.5

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jul. 31, 2022	Aug. 01, 2021	Jul. 31, 2022	Aug. 01, 2021
Fair Value Disclosures [Abstract]
Impairment of property and equipment	$ 2,600,000	$ 0	$ 2,600,000	$ 0
Impairment of operating lease right-of-use assets	2,600,000	0	2,600,000	0
Transfers in and out of level 3	$ 0	$ 0	$ 0	$ 0

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 31, 2022	May 01, 2022	Aug. 01, 2021	May 02, 2021	Jul. 31, 2022	Aug. 01, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 1,309,744	$ 1,664,207	$ 1,447,296	$ 1,651,185	$ 1,664,207	$ 1,651,185
Foreign currency translation adjustments	(1,385)	(1,514)	(3,522)	3,700	(2,899)	178
Change in fair value of derivative financial instruments	26	93	65	(665)	119	(600)
Reclassification adjustment for realized (gain) loss on derivative financial instruments	5	18	(337)	(153)	23	(490)
Other comprehensive income (loss)	(1,364)	(1,439)	(3,120)	3,188
Ending Balance	1,278,279	1,309,744	1,526,719	1,447,296	1,278,279	1,526,719
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(12,267)	(10,828)	(3,929)	(7,117)	(10,828)	(7,117)
Foreign currency translation adjustments	(1,385)	(1,514)	(3,522)	3,700
Change in fair value of derivative financial instruments	26	93	65	(665)
Reclassification adjustment for realized (gain) loss on derivative financial instruments	5	18	(337)	(153)
Ending Balance	(13,631)	(12,267)	(7,049)	(3,929)	(13,631)	(7,049)
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(12,400)	(10,886)	(2,698)	(6,398)	(10,886)	(6,398)
Foreign currency translation adjustments	(1,385)	(1,514)	(3,522)	3,700
Other comprehensive income (loss)	(1,385)	(1,514)	(3,522)	3,700
Ending Balance	(13,785)	(12,400)	(6,220)	(2,698)	(13,785)	(6,220)
Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	133	58	(1,231)	(719)	58	(719)
Change in fair value of derivative financial instruments	26	93	65	(665)
Reclassification adjustment for realized (gain) loss on derivative financial instruments	5	18	(337)	(153)
Other comprehensive income (loss)	21	75	402	(512)
Ending Balance	$ 154	$ 133	$ (829)	$ (1,231)	$ 154	$ (829)

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Millions	6 Months Ended
REVENUE (Details) - USD ($) $ in Millions	Jul. 31, 2022	Aug. 01, 2021
Disaggregation of Revenue [Line Items]
Customer loyalty program, expiration period	6 months
Other Current Liabilities
Disaggregation of Revenue [Line Items]
Expected sales return liability	$ 45.7	$ 28.3
Other Current Assets
Disaggregation of Revenue [Line Items]
Reduction in cost of goods sold for expected net realizable value of merchandise inventory to be returned	$ 13.9	7.8
Stored-Value Cards
Disaggregation of Revenue [Line Items]
Stored value card redemption period	4 years
Stored-Value Cards, Merchandise Sales and Credit Card Incentives
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 501.8	$ 406.5