v3.26.1
SEGMENT REPORTING
 3 Months Ended
May 03, 2026
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.
Our single reportable segment derives revenues from sales of merchandise through our e-commerce websites and retail stores, and includes shipping fees received from customers for delivery of merchandise to their homes. The accounting policies of our single reportable segment are described in the Summary of Significant Accounting Policies within Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended February 1, 2026.
Our chief operating decision maker (“CODM”) is our Chief Executive Officer. The CODM assesses performance for our single reportable segment and decides how to allocate resources based on operating income, which is reported on the Condensed Consolidated Statements of Earnings. Segment balance sheet information is not regularly provided to the CODM. The CODM uses operating income to decide whether to reinvest profits into our operating segments or allocate to other purposes, such as for repurchases of common stock, payment of dividends or acquisitions.
Operating income is used to monitor budget versus actual results. The CODM also uses operating income in competitive analysis by benchmarking to our peers. The competitive analysis, along with the monitoring of budget versus actual results, is used in assessing performance of the segment.
The following table summarizes reported net revenues, significant segment expenses, operating income and earnings before income taxes for the thirteen weeks ended May 3, 2026 and May 4, 2025.
For the Thirteen Weeks Ended
(In thousands)May 3, 2026May 4, 2025
Net revenues$1,805,456 $1,730,113 
Less:
Cost of merchandise and shipping808,475 766,635 
Occupancy, excluding depreciation148,284 141,829 
Employment286,687 270,430 
Advertising121,801 117,750 
Other segment items 1
93,174 86,877 
Depreciation and amortization expense55,347 55,879 
Operating income
291,688 290,713 
Interest income, net6,907 9,533 
Earnings before income taxes
$298,595 $300,246 
1Other segment items within operating income include general expenses, which consist primarily of credit card fees, data processing expenses and administrative expenses.
The following table summarizes our net revenues by brand for the thirteen weeks ended May 3, 2026 and May 4, 2025.
 
For the Thirteen Weeks Ended 1
(In thousands)May 3, 2026May 4, 2025
Pottery Barn$708,447 $695,092 
West Elm471,174 437,085 
Williams Sonoma 2
271,542 257,493 
Pottery Barn Kids and Teen240,149 229,716 
Other 3
114,144 110,727 
Total 4
$1,805,456 $1,730,113 
1Includes business-to-business net revenues within each brand.
2Includes Williams Sonoma Home net revenues.
3Primarily consists of net revenues from Rejuvenation, Mark and Graham, our international franchise operations, GreenRow and Dormify.
4Includes net revenues related to our international operations (including our operations in Canada, Australia, the United Kingdom, and our franchise businesses) of $73.4 million and $77.8 million for the thirteen weeks ended May 3, 2026 and May 4, 2025, respectively.
Long-lived assets by geographic location, which excludes deferred income taxes, goodwill, and intangible assets, are as follows:
As of
(In thousands)
May 3,
2026
February 1,
2026
May 4,
2025
U.S.$2,482,635 $2,448,273 $2,289,438 
International53,399 57,552 68,021 
Total$2,536,034 $2,505,825 $2,357,459