Slides
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Investor Presentation — 2025 —
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 2 OVERVIEW FORWARD-LOOKING STATEMENTS Certain statements included in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. These statements address the financial condition, results of operations, business and strategic initiatives, and prospects of the Company, as well as any other statement that is not of historical facts. The forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. Undue reliance should not be placed on forward-looking statements, which speak only as of March 19, 2025. Please refer to the Company's current press releases and SEC filings, including, but not limited to, reports on forms 10-K, 8-K, and 10-Q, for more information on the risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. Additionally, there may be other factors of which the Company is not currently aware of that may affect matters discussed in the forward-looking statements and may also cause actual results to differ materially from those discussed. The Company undertakes no obligation to update or revise any forward-looking statements to refl ect events or circumstances that may arise after March 19, 2025.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM OVERVIEW 3 Vision Mission Enhance the quality of life at home and beyond. To own the home. And the places where our customers work, stay, and play.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 4 OVERVIEW WSM Highlights $7.7B 2024 REVENUE Pottery Barn $3.040B West Elm 1.841B Williams Sonoma 1.303B Pottery Barn Kids & T een 1.107B Other† 0.421B Total $7.712B REVENUE BY BRAND † Includes revenue from global franchise operations, Rejuvenation, Mark & Graham, and GreenRow. OUR REVENUES 66% ECOMMERCE 34% RETAIL 54.0% KEY FINANCIAL MEASURES $4.1B through dividends and share buybacks in the last 5 years 17.9% 14% since 2021 122% 5 YEAR 181% 3 YEAR 569% 1 YEAR TOTAL RETURN TO SHAREHOLDERS ** RETURNED TO SHAREHOLDERS NON-GAAP OPERATING MARGIN * NON-GAAP ROIC EPS GROWTH * *Operating margin and EPS excludes a $49M out-of-period freight adjustment in Q1 FY24 worth 70bps in operating margin and $0.29 in EPS. **As of February 2, 2025.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM OVERVIEW 5 The home furnishings industry trails other industries in ecommerce penetration.* Shift to Ecommerce We operate in a highly fragmented market where no one owns more than 5%.* Expansive Market Opportunity Capturing 3% of the market would drive an incremental $16B+ in revenues (or triple our business today). Significant opportunity to grow share in the U.S. in this highly fragmented industry. $300B$450B US B2B GLOBAL HOME CATEGORY $80B $7.7B TOTAL MARKET OPPORTUNITY $830B *Source: Digital Commerce 360, T op 1000 Report (2024)*Source: Euromonitor, ThinkLab, & company estimates HOUSEWARES & HOME FURNISHINGS APPAREL CONSUMER ELECTRONICS OFFICE SUPPLIES 83% 73% 35% 31% US HOME CATEGORY
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 6 OVERVIEW We are the largest omni-channel player in the specialty home furnishings category. We generate more revenue than any of our competitors. Our size and scale are a competitive advantage in a fragmented industry. Leading Specialty Home Furnishings $7.7B $3.1B $2.5B $1.3B $0.7B $0.6B $0.6B
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM OVERVIEW 7 Our Competitive Advantage In-house Design • Digital First, Not Digital Only • Our Values KEY DIFFERENTIATORS Core Brand Growth • Category Growth • Emerging Brands Business-to-Business GROWTH INITIATIVES PROFITABILITY Our unique model, coupled with our key differentiators and growth initiatives, gives us the ability to continue taking market share profitably .
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 8 OVERVIEW Why W e’re Confident Approximately 70% of home goods sales still come from brick-and- mortar and 50% from small regional players. Lower interest rates could spur housing market and increase furniture sales. Customer share of wallet could shift back to the home. We stand out in the market for our in-house design, digital first (not digital only) strategy, and our values. We have substantial opportunities in our core brands, emerging brands (Rejuvenation, Mark & Graham, and GreenRow), and the B2B space. LARGE & FRAGMENTED INDUSTRY MACRO SHIFTS A FOCUS ON HOME OUR KEY DIFFERENTIATORS OUR GROWTH DRIVERS ABILITY TO TAKE SHARE & GROW + + + + We’re well-positioned to increase market share and spend per customer. =
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 9 KEY DIFFERENTIATORS DIGITAL FIRST , NOT DIGITAL ONLY 32 IN-HOUSE DESIGN 1 KEY DIFFERENTIATORS OUR VALUES
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 10 KEY DIFFERENTIATORS We design, create, and distribute our own products. We work closely with our trusted vendors to bring high-quality, sustainable products to market. Given our strong value equation and proprietary products that cannot be found elsewhere, we have pricing power that others do not. In-House Design IN-HOUSE DESIGNERS & ARTISTS 150 PROPRIETARY PRODUCT >90% SOURCING OFFICES 14 innovating and creating differentiated and market-leading product assortments. overseeing manufacturing across 53 countries to ensure transparency, quality and safety. designed and sold exclusively through our brands.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 11 KEY DIFFERENTIATORS We bring the latest home furnishing trends to life for customers through the individual lenses of our nine distinct brands, each serving different life stages and rooms of the home and beyond. Portfolio of 9 Distinct Brands
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 12 KEY DIFFERENTIATORS Our in- house design capability has enabled us to grow our brand portfolio across a wide range of aesthetics and price points that span life stages. Our Aesthetics & Price Points AESTHETIC MODERN CLASSIC PRICE POINT LOWER PRICED HIGHER PRICED
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM RANK COMPANY 1 Amazon.com Inc. 2 Walmart Inc. 3 Apple Inc. 4 The Home Depot, Inc. 5 Target Corp. 19 Williams-Sonoma, Inc. 20 The Gap, Inc. 25 Lululemon Athletica Inc. 28 Urban Outfitters, Inc. 31 Dick’s Sporting Goods, Inc. 39 Ulta Beauty, Inc. KEY DIFFERENTIATORS 13 Digital First, Not Digital Only ECOMMERCE RETAILER #19 *Source: Digital Commerce 360, T op 1000 Report (2024) in the United States*
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 14 KEY DIFFERENTIATORS The home furnishings industry is shifting online. Our digital-first platform is well-positioned to take advantage of this shift in consumer behavior to gain market share. Our Ecommerce Business non-pure play ecommerce home furnishings retailer* #1 of our business is ecommerce 66% ECOMMERCE REVENUES ($ and % Ecommerce Penetration) ecommerce shopping visits annually 738M *Source: Digital Commerce 360, T op 1000 Report (2024) FY20 FY21 FY22 FY23 FY24 $5.1B $5.1B $5.7B $5.4B $4.8B 66% 66% 70% 66% 66%
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 15 KEY DIFFERENTIATORS Our in-house digital marketing team leverages industry-leading customer analytics and exclusive first-party data as a competitive advantage. Data-Driven Marketing FIRST-PARTY DATA Unified view of first-party data for all customers across all channels and brands. IN-HOUSE DIGITAL MARKETING Centralized marketing organization keeps insights in-house. 360° CUSTOMER VIEW 360° view of customer journey enhanced by data science and learnings. TEST & LEARN CROSS-BRAND PLATFORM ROI-focused, proprietary test-and-learn platform capable of running hundreds of simultaneous tests across our brands.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 16 KEY DIFFERENTIATORS We see many opportunities to integrate AI into our business. Artificial Intelligence DIGITAL DESIGN Transform customer experiences with generative AI-guided interior design, delivering personalized inspiration, interactive 3D room planning, and photorealistic project visualization. CUSTOMER SERVICE Elevate and streamline customer service through intelligent virtual agents, personalized service recommendations, and predictive order insights. PRODUCT DISCOVERY Guide customers through complex shopping journeys with AI shopping assistants and hyper-personalized recommendations. CONTENT AUTOMATION Streamline creation of product descriptions, attribution data, lifestyle imagery, and brand content through advanced generative AI tools. INVENTORY MANAGEMENT Ensure product availability at the right time and place through AI algorithms that analyze purchasing patterns, seasonal trends, and regional preferences to predict demand with greater accuracy.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 17 KEY DIFFERENTIATORS Our stores deliver best-in-class customer experiences with beautifully curated assortments, personalized services, and an integrated shopping experience across channels. Our Retail Advantage SERVICE Our free design services offer one-on-one expert consultations in-store, at home, and online, along with personalized registry concierge services, and engaging classes and events. OMNI-CHANNEL SHOPPING EXPERIENCE Omni-channel customers spend four times more and shop three times as often compared to single-channel customers. OMNI-FULFILLMENT Our stores serve as fulfillment hubs, catering to customers however they shop, including “Buy Online, Pick Up in Store,” “Ship from Store,” and “Buy Online, Ship to Any Store.” RETAIL OPTIMIZATION Our continued retail optimization efforts have transformed our fl eet into the most profitable, inspiring, and strategic locations.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 18 KEY DIFFERENTIATORS Our V alues PEOPLE FIRST We are committed to an environment that attracts, motivates, and recognizes high performance. CORPORATE RESPONSIBILITY We operate with integrity and ethics as we enhance the lives of our stakeholders, communities, and the environment. CUSTOMERS We are here to serve our customers—without them, nothing else matters. QUALITY We take pride in everything we do. From our product to the experience and service we provide—quality is our signature. PROFIT We are committed to providing a superior return to our shareholders. It’s everyone’s job.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 19 KEY DIFFERENTIATORS One of our goals of running a profitable and strong company has always been to make the world a better place. Our customers have always wanted things like durable products, organic textiles, furniture with less toxic off-gassing, and supported concepts like Fair Trade. Sustainability *Source: Barron’s 100 Most Sustainable U.S. Companies (2018-2025) Established science-based targets for CO₂ reductions CARBON GOALSFAIR TRADE Over $10M in premiums paid since 2021 WOOD 57% responsibly sourced COTTON 98% responsibly sourced PAY FOR PERFORMANCE We foster an engaging environment where people are rewarded for excellence. Everything we do is designed to drive performance. ETHICAL PRODUCTION We source products from suppliers that provide safe, fair, and healthy working conditions. We audit for social compliance and implement continuous improvement actions. WORKER WELLBEING We develop and implement industry- leading worker wellbeing initiatives in factories to build and strengthen communities around the globe such as VisionSpring, Fair Trade Certified™, and Nest Ethical Handcraft Program. We offer the largest assortment of responsibly made products in the home furnishings industry.* — BUILT-TO-LAST , RESPONSIBLY SOURCED — Our people are the heart of our business. From our associates to our supplier partners, we are dedicated to creating a culture focused on high performance, ethical production and worker wellbeing. — PEOPLE —
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 20 KEY DIFFERENTIATORS By managing resources responsibly, caring for our people, and uniting around our values, we lead our industry and are proud to be recognized for continuous action and progress. Accolades BEST EMPLOYER FOR DIVERSITY 2018-2024 100 MOST SUSTAINABLE U.S. COMPANIES 2024 NORTH AMERICA INDEX 2022-2024 Only home retailer for eight consecutive years AMERICA'S MOST RESPONSIBLE COMPANIES 2024-2025 CUSTOMER SERVICE CHAMPIONS 2024 AMERICA’S BEST MIDSIZED COMPANIES 2024
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 21 2025 PRIORITIES ELEVATING WORLD-CLASS CUSTOMER SERVICE 32 RETURNING TO GROWTH 1 2025 PRIORITIES DRIVING EARNINGS
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 2025 PRIORITIES 22 W e have confidence in our long-term algorithm of mid-to-high, single- digit revenue growth with operating margins in the mid-to-high teens. LONG TERM OUTLOOK Our long-term growth algorithm is rooted in our proven track record of strong, consistent, and profitable growth over the past 20 years, with the capacity for upside driven from our growth initiatives. Historical Growth 20 YEAR GROWTH REVENUE EARNINGS PER SHARE * FY04 FY14 FY24 $8.50 $1.60 $0.80FY04 FY14 FY24 $7.7B $4.7B $3.1B 12.5% CAGR 4.6% CAGR * On July 9, 2024, the Company effected a 2-for-1 stock split of its common stock through a stock dividend. Earnings Per Share (EPS) has been retroactively adjusted to reflect the stock split. EPS excluded an out-of-period freight adjustment of $49M in Q1 FY24, worth $0.29.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 2025 PRIORITIES 23 1 Growth Drivers — CORE BRAND GROWTH — — BUSINESS-TO-BUSINESS — — EMERGING BRANDS — — CATEGORY GROWTH —
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 24 GROWTH DRIVERS Newness and innovation will drive organic growth in our brands. Core Brand Growth Comfortable, casual, timeless, and innovative home furnishings. High-quality, innovatively designed, safe and healthy furnishings for kids. Premium housewares and entertainment destination for chefs everywhere. The only fully-integrated life-stage teen brand in the world. Modern, urban and exciting design.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 25 GROWTH DRIVERS We are leveraging our in-house design capabilities to expand into white space opportunities within our largest brands and beyond. Category Growth Accessories and solutions for dorm life and beyond. Casual luxury spaces in the kitchen and home. Made-to-last styles for kids, from modern nurseries to big-kid bedrooms. Quality nursery furnishings, decor and gifts for baby. Strategic brand-enhancing collaborations. COLLABORATIONS
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 26 GROWTH DRIVERS Rejuvenation, Mark & Graham, and GreenRow are gaining traction with runway for substantial growth. Emerging Brands Elevated, ethical home furnishings. Timeless personalized gifts and more. Heirloom lighting, hardware, and home furnishings.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 27 GROWTH DRIVERS Rejuvenation: Our Next $1B Brand Based out of Portland, Oregon, our Rejuvenation brand is a trusted partner for every home project, offering expert guidance and high-quality designs for renovation and home refresh. With a focus on American craftsmanship, we help customers create thoughtful, lasting spaces. ELEVATING SPACES WITH PREMIUM HARDWARE High-quality, design-driven hardware sets the brand apart, offering a broad assortment of timeless, functional pieces that complete any project. CUSTOM LIGHTING EXPERTISE Expert craftsmanship and made-to-order capabilities allow customers to personalize lighting, including length, finish, and shade—driving growth in the expanding lighting market. LEADERSHIP IN BATH DESIGN A growing bath assortment is capturing more market share with premium, design-driven solutions. EXPANDING RETAIL FOOTPRINT With 11 showrooms, these retail spaces provide an experiential way to explore thoughtfully designed collections in person. B2B GROWTH The B2B channel serves trade professionals with premium, project-ready solutions.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 28 GROWTH DRIVERS We are no longer just a home furnishings company. Leveraging our in-house design, vertical sourcing, and brand portfolio, we are disrupting the growing and underserved business-to-business market. Business-to-Business: A $2B Opportunity HOSPITALITY Hotels, Resorts, Restaurants, Country Clubs RESIDENTIAL EDUCATION COMMERCIAL GOVERNMENT HEALTHCARE + WELLNESS RETAIL Single and Multi-Family Designers and Developers Educational Establishments and University Housing Office Spaces, Sports/Entertainment Arenas GSA certification, Government and Military Senior Living, Hospitals, Health and Fitness Retail Store Builds and Malls CRUISE Ship Furnishings, Departure Lounges, and Yacht Clubs *Source: Euromonitor, ThinkLab & company estimates $80B TOTAL ADDRESSABLE MARKET *
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 29 GROWTH DRIVERS Our brands resonate with consumers around the world, and we serve them across company-owned and franchise stores, shop-in-shops, and websites. Global TORONTO, CANADA WEST ELM MUMBAI, INDIA POTTERY BARN KIDS QUERÉTARO, MEXICO POTTERY BARN
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 2025 PRIORITIES 30 2 Leading W orld-Class Customer Service — DELIVERY NETWORK — — CUSTOMER SERVICE SCORES — — IMPROVED DELIVERY SERVICE — REGIONAL DISTRIBUTION CENTERS 13 2024 IN-HOME FURNITURE DELIVERIES 2.4M FURNITURE HUBS 37 IN-STORE NET PROMOTER SCORE 88 IN-HOME DELIVERY NET PROMOTER SCORE 87 COMPANY AVERAGE STELLA SCORE 4.8/5 STARS Returns • Damages • Replacements • On-time Deliveries Accommodations • Multiple Shipments
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 2025 PRIORITIES 31 3 Driving Earnings — OUR SIX DRIVERS — We expect operating margin to be in the range of 17.4% – 17.8% in FY25 and in the mid-to-high teens in the long term. 1 SUPPLY CHAIN EFFICIENCIES maintaining the improvements in supply chain that we achieved LY 2 PRICING POWER of our in-house designed, proprietary products 3 ECOMMERCE SALES MIX generating marginal revenue dollars in a higher contribution channel 4 RETAIL OPTIMIZATION targeting having fewer and more profitable stores 5 AD COST INVESTMENT of our in-house, first-party-data, hands-on- keyboard model 6 COST CONTROL resulting from our financial discipline * Operating margin excludes an out-of-period freight adjustment of $49M in Q1 FY24 worth 70bps. FY21 FY22 FY23 FY24 FY25 Long T erm 16.4% 17.4% 17.5%17.7% 17.8% MID -TO- HIGH TEENS 17.9% *
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM DRIVE EARNINGS 32 We have a 6-point plan for tariff mitigation. T ariffs 1 Obtaining cost concessions from our strong vendor partnership. 2 Re-sourcing goods to lower tariff countries, including further reductions out of China. 3 Passing on select price increases. 4 Identifying further supply chain efficiencies in our network. 5 Reducing SG&A expense. 6 Expanding our Made in the USA assortment, production, and partnerships. Sourcing Footprint We have a diverse sourcing base around the world, including the United States. CHINA UNITED STATES INDIA VIETNAM REST OF WORLD 29% 23% 18% 16% 14%
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2025 INVESTOR PRESENTATION FINANCIAL OUTLOOK 33 Financial Outlook POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM FY20 FY21 FY22 FY23 FY24 $8.50 $7.43 $8.27 $7.43 $4.52 34 FINANCIAL OUTLOOK We have a track record of strong revenue and EPS growth. Financial Performance NET REVENUES NON-GAAP EPS 1 FY20 FY21 FY22 FY23 FY24 Ecom Revenue Retail Revenue $8.2B $6.8B 66% 70% 3.3% CAGR $7.8B 66% 17.1% CAGR $8.7B 66% $7.7B 66% 2 1. On July 9, 2024, the Company effected a 2-for-1 stock split of its common stock through a stock dividend. Non-GAAP EPS has been retroactively adjusted to reflect the stock split. 2. Excludes the impact of the out-of-period freight adjustment in Q1 FY24, worth $0.29 in EPS.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM FY20 FY21 FY22 FY23 FY24 14.7% 15.2% 16.5% 26.8% 13.6% 54.0% 45.0% 49.4% 57.9% 38.1% WSI Peer Median 1 YEAR 3 YEAR 5 YEAR 569% 181% 122% 35 FINANCIAL OUTLOOK Our investments in our business are generating industry-leading returns. Returns on Investment TOTAL SHAREHOLDER RETURNS 1 1. Assumes re-investment of dividends and reflects share repurchases. 2. See page 41 for the calculation of ROIC, together with a reconciliation of net earnings to non-GAAP net operating profit after tax ("NOPAT") . RETURNS ON INVESTED CAPITAL (ROIC) 2
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 36 FINANCIAL OUTLOOK We are committed to consistent shareholder returns with $4.1B returned to shareholders over the last 5 years. Returns to Shareholders RETURNS TO SHAREHOLDERS 2024 was the 15th consecutive year of dividend increases since we initiated a dividend in 2006. FY20 FY21 FY22 FY23 FY24 $807 $313 $880 $899 $150 $280 $232 $217 $188 $158 Dividends ($M) Share Repurchases ($M) $545 $1,097$1,087 $308 $1,087 FY20 FY21 FY22 FY23 FY24 $.57 $.45 $.39 $.36 $.27 +10% +34% +10% +15% +27% QUARTERLY DIVIDEND PER SHARE * *On July 9, 2024, the Company effected a 2-for-1 stock split of its common stock through a stock dividend. Dividend per share has been retroactively adjusted to reflect the stock split.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 37 GAAP TO NON-GAAP RECONCILIATIONS GAAP TO NON-GAAP RECONCILIATIONS This presentation includes non-GAAP financial measures. The following slides provide 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 U.S. (“GAAP”). We have not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential variability and limited visibility of excluded items; these excluded items may include exit costs, reduction-in-force initiatives, impairment and early termination charges, among others. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance 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, and year over year. In addition, certain other items may be excluded from non-GAAP financial measures when we believe this provides greater clarity to management and investors. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this presentation and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 38 GAAP TO NON-GAAP RECONCILIATIONS Fiscal Y ear 2024 & 2023 FOR THE FISCAL YEAR ENDED February 2, 2025 January 28, 2024 $ % of Revenues $ % of Revenues Occupancy Expenses $ 793,141 10.3% $ 814,290 10.5% Exit Costs¹ - (239) Non-GAAP Occupancy Expenses $ 793,141 10.3% $ 814,051 10.5% Gross profit $ 3,582,299 46.5% $ 3,303,601 42.6% Exit Costs¹ - 2,141 Non-GAAP gross profit $ 3,582,299 46.5% $ 3,305,742 42.7% Selling, general and administrative expenses $ 2,152,115 27.9% $ 2,059,408 26.6% Exit Costs¹ - (15,790) Reduction-in-force Initiatives² - (8,316) Non-GAAP selling, general and administrative expenses $ 2,152,115 27.9% $ 2,035,302 26.3% Operating income $ 1,430,184 18.6% $ 1,244,193 16.1% Exit Costs¹ - 17,931 Reduction-in-force Initiatives² - 8,316 Non-GAAP operating income $ 1,430,184 18.6% $ 1,270,440 16.4% $ Tax rate $ Tax rate Income taxes $ 360,481 24.3% $ 323,593 25.4% Exit Costs¹ - 4,690 Reduction-in-force Initiatives² - 2,174 Non-GAAP income taxes $ 360,481 24.3% $ 330,457 25.4% Diluted EPS3 $ 8.79 $ 7.28 Exit Costs¹ - 0.10 Reduction-in-force Initiatives² - 0.05 Non-GAAP Diluted EPS $ 8.79 $ 7.43 (Dollars in thousands except per share data) Footnotes: 1. During FY2023, we incurred exit costs of $17.9 million, including $9.3 million associated with the closure of our West Coast manufacturing facility and $8.6 million associated with the exiting of Aperture, a division of our Outward, Inc. subsidiary. 2. During FY2023, we incurred costs related to reduction-in-force initiatives of $8.3 million, primarily in our corporate functions. 3. On July 9, 2024, the Company effected a 2-for-1 stock split of its common stock through a stock dividend. All historical share and per share amounts have been retroactively adjusted to reflect the stock split. GAAP TO NON-GAAP RECONCILIATIONS
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 39 GAAP TO NON-GAAP RECONCILIATIONS Fiscal Y ear 2022 & 2021 (Dollars in thousands except per share data) Footnotes: 1. During FY2022, we incurred an impairment charge of approximately $17.7 million, including $9.7 million related to the impairment of software and hardware and $8.0 million related to the impairment of goodwill, associated with Aperture, a division of our Outward, Inc. subsidiary. 2. During FY2021, we incurred approximately $9.2 million associated with acquisition-related compensation expense and the amortization of acquired intangibles for Outward, Inc. 3. On July 9, 2024, the Company effected a 2-for-1 stock split of its common stock through a stock dividend. All historical share and per share amounts have been retroactively adjusted to reflect the stock split. GAAP TO NON-GAAP RECONCILIATIONS FOR THE FISCAL YEAR ENDED January 29, 2023 January 30, 2022 $ % of Revenues $ % of Revenues Selling, general and administrative expenses $ 2,179,311 25.1% $ 2,178,847 26.4% Impairment of Aperture1 (17,687) - Outward-related² - (9,160) Non-GAAP selling, general and administrative expenses $ 2,161,624 24.9% $ 2,169,687 26.3% Operating income $ 1,498,422 17.3% $ 1,453,116 17.6% Impairment of Aperture1 17,687 - Outward-related² - 9,160 Non-GAAP operating income $ 1,516,109 17.5% $ 1,462,276 17.7% Tax Rate Tax Rate Income taxes $ 372,778 24.8% $ 324,914 22.4% Impairment of Aperture1 2,840 - Outward-related² - 1,397 Non-GAAP income taxes $ 375,618 24.7% $ 326,311 22.3% Diluted EPS3 $ 8.16 $ 7.38 Impairment of Aperture1 0.11 - Outward-related² - 0.05 Non-GAAP Diluted EPS $ 8.27 $ 7.43
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 40 GAAP TO NON-GAAP RECONCILIATIONS Fiscal Y ear 2020 (Dollars in thousands except per share data) Footnotes: 1. During FY2020, we incurred approximately $11.4 million of inventory write-offs for inventory with minor damage that we could not liquidate through our outlets due to store closures resulting from COVID-19. 2. During FY2020, we incurred approximately $12.1 million associated with acquisition-related compensation expense and the amortization of acquired intangibles for Outward, Inc. 3. During FY2020, we incurred approximately $27.1 million of expense associated with store asset impairments due to the impact that COVID-19 had on our retail stores. 4. During FY2020, we recorded approximately $5.0 million of tax benefit resulting from a nonrecurring adjustment to certain deferred tax assets and liabilities. 5. On July 9, 2024, the Company effected a 2-for-1 stock split of its common stock through a stock dividend. All historical share and per share amounts have been retroactively adjusted to reflect the stock split. GAAP TO NON-GAAP RECONCILIATIONS FOR THE FISCAL YEAR ENDED January 31, 2021 $ % of Revenues Gross profit $ 2,636,269 38.9% Inventory write-off¹ $ 11,378 Non-GAAP gross profit $ 2,647,647 39.0% Selling, general and administrative expenses $ 1,725,572 25.4% Outward-related² (12,092) Asset impairment³ $ (27,069) Non-GAAP selling, general and administrative expenses $ 1,686,411 24.9% Operating income $ 910,697 13.4% Inventory write-off¹ 11,378 Outward-related² 12,092 Asset impairment³ 27,069 Non-GAAP operating income $ 961,236 14.2% Tax Rate Income taxes $ 213,752 23.9% Inventory write-off¹ 2,940 Outward-related² 1,913 Asset impairment³ 6,593 Deferred tax asset/liability adjustment4 5,030 Non-GAAP income taxes $ 230,228 24.4% Diluted EPS5 $ 4.31 Inventory write-off¹ 0.05 Outward-related² 0.06 Asset impairment³ 0.13 Deferred tax asset/liability adjustment4 (0.03) Non-GAAP Diluted EPS $ 4.52
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2025 INVESTOR PRESENTATION POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM 41 GAAP TO NON-GAAP RECONCILIATIONS Return on Invested Capital (ROIC) 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"). 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 . Footnotes: 1. During FY2024, we determined that we over-recognized freight expense in FY2021, FY2022 and FY2023. Therefore, we recorded an out-of-period adjustment to reduce cost of goods sold. 2. During FY2023, we incurred exit costs of $17.9 million, including $9.3 million associated with the closure of our West Coast manufacturing facility and $8.6 million associated with the exiting of Aperture, a division of our Outward, Inc. subsidiary. Additionally, during FY2023, we incurred costs related to reduction-in-force initiatives of $8.3 million primarily in our corporate functions. 3. Adjustment reflects a hypothetical provision for income taxes on adjusted operating income, using the Company's effective tax rate of 24.3% for FY2024 and 25.4% for FY2023. GAAP TO NON-GAAP RECONCILIATIONS FOR THE FISCAL YEAR ENDED February 2, 2025 January 28, 2024 Net earnings $ 1,125,251 $ 949,762 Interest income (expense), net (55,548) (29,162) Income taxes 360,481 323,593 Operating income $ 1,430,184 $ 1,244,193 Out-of-period Freight Adjustment1 (48,972) Exit costs2 - 17,931 Reduction-in-force initiatives2 - 8,316 Operating lease costs 299,105 296,779 Operating income, adjusted $ 1,680,317 $ 1,567,219 Income tax adjustment3 (408,317) (398,074) NOPAT $ 1,272,000 $ 1,169,145 AS OF February 2, 2025 January 28, 2024 January 29, 2023 T otal assets 5,301,607 5,273,548 4,663,016 T otal current liabilities (1,911,974) (1,880,315) (1,636,451) Cash in excess of $200 million $ (1,012,977) $ (1,062,007) $ (167,344) Invested capital $ 2,376,656 $ 2,331,226 $ 2,859,221 Average invested capital $ 2,353,941 $ 2,595,224 Return on invested capital 54.0% 45.0%