Slides
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Investor Presentation2026
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 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 August 26, 2026. 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 reflect events or circumstances that may arise after August 26, 2026. Pottery Barn: Huntington Collection, Summer ‘26
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY OVERVIEW 3 Vision MissionEnhance the quality of life at home and beyond. To own the home. And the places where our customers work, stay, and play. West Elm Office: Hughes Collection, Spring ‘26
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 241% 3 YEAR 249% 5 YEAR 4 OVERVIEW WSM Highlights $7.8B 2025 REVENUE Pottery Barn $2.999B West Elm 1.8600 Williams Sonoma2 1.3620 Pottery Barn Kids & Teen 1.1380 Other3 0.4480 Total $7.807B REVENUE BY BRAND1 1.Includes Business-to-Business net revenues. 2.Includes Williams Sonoma Home net revenues. 3.Includes net revenue from Rejuvenation, Mark & Graham, international franchise operations, and GreenRow. OUR REVENUES 65% ECOMMERCE 35%RETAIL 51.6% KEY FINANCIAL MEASURES $5B through dividends and share buybacks in the last 5 years 18.1% 7% since 2022 TOTAL RETURN TO SHAREHOLDERS* RETURNED TO SHAREHOLDERS OPERATING MARGIN ADJUSTED ROIC EPS GROWTH *As of February 1, 2026.
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY OVERVIEW 5 We have consistently outperformed the industry over the past several years. Market Share 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. $290B$450B US B2B GLOBAL HOME CATEGORY $80B $7.8B TOTAL MARKET OPPORTUNITY $820B *Source: Euromonitor, ThinkLab, & company estimates US HOME CATEGORY Growth / (Decline) -16% -12% -8% -4% 0% 4% 8% FY22 FY23 FY24 FY25 WSM Industry* *Source: Bank credit card data
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 6 OVERVIEW We are the largest omni-channel player in the specialty home furnishings category. Our size and scale are a competitive advantage in a fragmented industry. Leading Specialty Home Furnishings $7.8B $3.4B $2.5B $1.4B $0.8B $0.6B $0.6B
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY OVERVIEW 7 Our Competitive Advantage In-house Design • Digital First, Not Digital Only • Quality KEY DIFFERENTIATORS Brand Growth • Product Pipeline • Brand Heat • Channel Excellence Emerging Brands • Business-to-Business GROWTH INITIATIVES PROFITABILITY The power of our operating model, along with our key differentiators and growth initiatives, positions us to take market share profitability. William Sonoma Home: Radius Collection, Summer ‘26
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 8 KEY DIFFERENTIATORS DIGITAL FIRST, NOT DIGITAL ONLY 2 IN-HOUSE DESIGN 1 KEY DIFFERENTIATORS QUALITY 3 William Sonoma Home: Radius Collection, Summer ‘26
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 9 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 140 PROPRIETARY PRODUCTS >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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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 10 KEY DIFFERENTIATORS We offer the latest home furnishing trends for customers through the lenses of our ten distinct brands, each serving different life stages and rooms of the home and beyond. Portfolio of 10 Distinct Brands
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 11 KEY DIFFERENTIATORS Our powerful portfolio of brands encompass 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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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY RANK COMPANY 1 Amazon.com Inc. 2 Walmart Inc. 3 Apple Inc. 4 The Home Depot, Inc. 5 Target Corp. 23 Williams-Sonoma, Inc. 24 Lululemon Athletica Inc. 29 Urban Outfitters, Inc. 31 Dick’s Sporting Goods, Inc. 35 Ulta Beauty, Inc. 39 Victoria’s Secret & Co. KEY DIFFERENTIATORS 12 Digital First, Not Digital Only *Source: Digital Commerce 360, Top 1000 Report (2025) ECOMMERCE RETAILER #23 in the United States* Pottery Barn Teen: Billabong Collaboration Summer ‘25
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY #1 non-pure play ecommerce home furnishings retailer* 65% of our business is ecommerce 710M ecommerce shopping visits annually 13 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 ECOMMERCE REVENUES ($ and % Ecommerce Penetration) *Source: Digital Commerce 360, Top 1000 Report (2025) FY21 FY22 FY23 FY24 FY25 $5.1B $5.1B $5.1B $5.7B $5.4B 66% 66% 66% 66% 65% Outward: Pottery Barn Room Planner
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 14 KEY DIFFERENTIATORS Our in-house digital marketing team leverages industry-leading customer analytics, internally developed measurement tools, and 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. TARGETING & PERSONALIZATION 360° view of customer powered AI-enabled data science models for targeting and personalization. TEST & LEARN CROSS-BRAND PLATFORM ROI-focused, proprietary test-and-learn platform capable of running hundreds of simultaneous tests across our brands. Pottery Barn Kids: Blake Collection, Spring ’25
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 15 KEY DIFFERENTIATORS AI is an accelerator to our initiatives. 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. WORKFORCE PRODUCTIVITY Accelerate corporate functions and reduce SG&A through AI-powered workflows that eliminate overhead and enable faster, smarter decisions. Greenpan Stanley Tucci Pizza Oven
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 16 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 retail optimization efforts have transformed our fleet into profitable, inspiring, and strategic locations. Pottery Barn Store: Naples, FL, Opened January ‘26
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 17 KEY DIFFERENTIATORS Quality ENGINEERING EXCELLENCE Engineering standards developed and embedded across our global product platform. GLOBAL IN-HOUSE LABORATORIES Globally harmonized testing protocols supporting safety, durability, and regulatory alignment. ANNUAL QUALITY VERIFICATIONS ACROSS GLOBAL PRODUCTION End-to-end verification embedded across our vendors globally. Quality is our core value and our signature. It shapes how we design, engineer, and deliver products built on performance and craftsmanship. Embedded across our global operating model, our quality platform ensures consistent excellence, protects brand equity, strengthens competitive advantage, and drives sustainable growth. Rejuvenation: Hanson Collection, Spring ‘26
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 18 2026 PRIORITIES 2026 PRIORITIES ACCELERATING GROWTH 1 DELIVERING WORLD-CLASS CUSTOMER SERVICE 2 3 DRIVING EARNINGS Williams Sonoma: KitchenAid Stand Mixer with Walnut Bowl
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY BRAND HEAT Excitement and relevance Collaborations as a key driver Greater social and influencer engagement Stronger storytelling across site, email, and catalog Partnering with AI leaders to improve discovery PRODUCT PIPELINE Growth in design-led innovation and newness Furniture growth through new collections, finishes, and design White space opportunities in West Elm Office, Dorm, Pottery Barn Baby Expanding Williams Sonoma branded and exclusive product CHANNEL EXCELLENCE Better onsite and external discovery Online advantaged categories AI-powered personalization Retail driven by Take It Home Today, Design Services, and disciplined store growth 2026 PRIORITIES 19 1 Accelerating Growth BRAND GROWTH Accelerating Pottery Barn Building on West Elm momentum Williams Sonoma as the kitchen authority Children’s expanding from baby to dorm Emerging Brands led by Rejuvenation B2B driving meaningful growth
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 20 2026 PRIORITIES Rejuvenation: Our Next $1B BrandBased 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 13 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. Rejuvenation Store: San Diego, CA
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 21 2026 PRIORITIES 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 B2B: Beacon Grand Hotel, San Francisco, CA
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 2026 PRIORITIES 22 2 Delivering W orld-Class Customer Service — DELIVERY NETWORK — — CUSTOMER SERVICE SCORES — — IMPROVED DELIVERY SERVICE — REGIONAL DISTRIBUTION CENTERS 15 2025 IN-HOME FURNITURE DELIVERIES 2.4M FURNITURE HUBS 42 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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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 2026 PRIORITIES 23 3 Driving Earnings We expect non-GAAP operating margin to be in the range of 17.8% – 18.2% in FY26 and in the mid-to-high teens in the long term. * Operating margin excludes an out-of-period freight adjustment of $49M in Q1 FY24 worth 70bps. FY22 FY23 FY24* FY25 FY26 Long Term 16.4% 17.5% 18.1% MID -TO- HIGH TEENS 17.9% 18.2% 17.8%
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 2026 PRIORITIES 24 We have a 6-point plan for tariff mitigation. T ariffs 1Obtaining cost concessions from our strong vendor partnership. 2Re-sourcing goods to lower tariff countries. 3Passing on select price increases. 4Identifying further supply chain efficiencies in our network. 5Reducing SG&A expense. 6Expanding our Made in the USA assortment, production, and partnerships. FY25 Sourcing FootprintWe have a diverse sourcing base around the world, including the United States. REST OF WORLD 31% CHINA 19% UNITED STATES 19% INDIA 15%VIETNAM 16%
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2026 INVESTOR PRESENTATION FINANCIAL OUTLOOK 25 POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY Financial Outlook Pottery Barn: Huntington Collection, Summer ‘26
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY FY21 FY22 FY23 FY24 FY25 $8.84 $8.50 $7.43 $8.27 $7.43 26 FINANCIAL OUTLOOK We have a track record of strong revenue and EPS growth. Financial Performance NET REVENUES NON-GAAP EPS1 FY21 FY22 FY23 FY24 FY25 Ecom Revenue Retail Revenue $8.2B $7.8B 66% 65% $7.8B 66% 4.5% 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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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY FY21 FY22 FY23 FY24 FY25 12.7% 14.7% 15.2% 16.5% 26.8% 51.6% 54.0% 45.0% 49.4% 57.9% WSI Peer Median 3 YEAR 5 YEAR 10 YEAR 905% 249% 241% 27 FINANCIAL OUTLOOK Our investments in our business are generating industry-leading returns. Returns on Investment TOTAL SHAREHOLDER RETURNS1 1.Assumes re-investment of dividends and reflects share repurchases. 2.We make certain adjustments to ROIC and refer to this figure as Adjusted ROIC. Adjusted ROIC is used in this graph. See page 32 for the calculation of Adjusted ROIC, together with a reconciliation of ROIC to Adjusted ROIC. RETURN ON INVESTED CAPITAL2
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 28 FINANCIAL OUTLOOK We are committed to consistent shareholder returns, with $5.0B returned to shareholders over the last 5 years. Returns to Shareholders RETURNS TO SHAREHOLDERS 2025 was the 16th consecutive year of dividend increases since we initiated a dividend in 2006. FY21 FY22 FY23 FY24 FY25 $854 $807 $313 $880 $899 $316 $280 $232 $217 $188 Dividends ($M) Share Repurchases ($M) $545 $1,097$1,087 $1,170$1,087 FY21 FY22 FY23 FY24 FY25 $.66 $.57 $.45 $.39 $.36 +16% +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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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 29 GAAP TO NON-GAAP RECONCILIATIONS GAAP TO NON-GAAP RECONCILIATIONS This press release and our accompanying earnings call includes non-GAAP financial measures. Additional information regarding Adjusted Return on Invested Capital, which is a non-GAAP financial measure, is provided along with a reconciliation of this measure to the most directly comparable U.S. generally accepted accounting principles (“GAAP”) financial measure. We have not provided a reconciliation of non-GAAP measures to the corresponding GAAP measures on a forward-looking basis as we cannot do so without unreasonable efforts 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. For the same reasons, we are unable to address the probable significance of such excluded items. 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. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes 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 press release and our financial statements and other publicly filed reports. Such non-GAAP measures may not be comparable to similarly titled measures used by other companies. Williams Sonoma Home: Chambers Collection, Spring ‘26
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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 30 GAAP TO NON-GAAP RECONCILIATIONS Fiscal Y ear 2023 FOR THE FISCAL YEAR ENDED January 28, 2024 $ % of Revenues Occupancy Expenses $ 814,290 10.5% Exit Costs¹ (239) Non-GAAP Occupancy Expenses $ 814,051 10.5% Gross profit $ 3,303,601 42.6% Exit Costs¹ 2,141 Non-GAAP gross profit $ 3,305,742 42.7% Selling, general and administrative expenses $ 2,059,408 26.6% Exit Costs¹ (15,790) Reduction-in-force Initiatives² (8,316) Non-GAAP selling, general and administrative expenses $ 2,035,302 26.3% Operating income $ 1,244,193 16.1% Exit Costs¹ 17,931 Reduction-in-force Initiatives² 8,316 Non-GAAP operating income $ 1,270,440 16.4% $ Tax rate Income taxes $ 323,593 25.4% Exit Costs¹ 4,690 Reduction-in-force Initiatives² 2,174 Non-GAAP income taxes $ 330,457 25.4% Diluted EPS3 $ 7.28 Exit Costs¹ 0.10 Reduction-in-force Initiatives² 0.05 Non-GAAP Diluted EPS $ 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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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 31 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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2026 INVESTOR PRESENTATIONPOTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | GREENROW WILLIAMS SONOMA | WILLIAMS SONOMA HOME | REJUVENATION | MARK & GRAHAM | DORMIFY 32 GAAP TO NON-GAAP RECONCILIATIONS ROIC & Adjusted ROIC We believe that Adjusted Return on Invested Capital (“Adjusted ROIC”) is a useful financial ratio for investors in evaluating the efficiency and effectiveness of the capital we have invested in our business to generate returns over time. Our Adjusted ROIC calculation excludes certain items that we do not consider representative of our operating performance. Adjusted ROIC is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for net earnings, total assets or other GAAP financial measures. Our method of calculating a non-GAAP financial ratio may differ from other companies’ methods and therefore may not be comparable to those used by other companies. We also present the financial ratio calculated using the most directly comparable GAAP measures and refer to this as Return on Invested Capital (“ROIC”). Footnotes: 1.Reflects a hypothetical provision for income taxes on operating income, using the Company's effective tax rates of 25.1% for fiscal 2025 and 24.3% for fiscal 2024. 2.During Q1 2024, we determined that we over-recognized freight expense in fiscal 2021, 2022 and 2023. Therefore, we recorded an out-of-period adjustment to reduce cost of goods sold. We believe this is not related to the operations of fiscal 2024. 3.We adjust for operating lease costs to align with the metrics we use to determine certain components of management compensation. GAAP TO NON-GAAP RECONCILIATIONS Numerator (adjusted): FOR THE FISCAL YEAR ENDED In thousands February 1, 2026 February 2, 2025 Operating income $ 1,415,722$ 1,430,184 Out-of-period Freight Adjustment2 - (48,972) Operating lease costs3 310,736 299,105 Income tax adjustment1 (433,341) (408,317) Adjusted operating income after tax $ 1,293,117$ 1,272,000 Denominator: AS OF In thousands, except percentages February 1, 2026 February 2, 2025 January 28, 2024 Total assets $ 5,411,912$ 5,301,607$ 5,273,548 Total current liabilities (1,954,130) (1,911,974) (1,880,315) Cash in excess of $200 million (819,801) (1,012,977) (1,062,007) Invested capital $ 2,637,981$ 2,376,656$ 2,331,226 Average invested capital $ 2,507,319$ 2,353,941 ROIC 42.3% 46.0% Adjusted ROIC 51.6% 54.0% Numerator (using the most directly comparable GAAP measures): FOR THE FISCAL YEAR ENDED In thousands February 1, 2026 February 2, 2025 Operating income $ 1,415,722$ 1,430,184 Income tax1 (355,346) (347,535) Operating income after tax $ 1,060,376$ 1,082,649