Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Williams-Sonoma Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Federal	275,734)	299,015)	234,638)	171,821)	76,873)	43,745)
State	54,903)	71,120)	61,056)	39,498)	14,205)	15,357)
Foreign	22,041)	26,466)	26,685)	15,494)	12,438)	12,822)
Current	352,678)	396,601)	322,379)	226,813)	103,516)	71,924)
Federal	(30,632)	(17,293)	5,896)	(7,575)	(606)	23,507)
State	686)	(3,292)	(741)	(5,997)	(870)	1,562)
Foreign	861)	(3,238)	(2,620)	511)	(1,081)	(1,430)
Deferred	(29,085)	(23,823)	2,535)	(13,061)	(2,557)	23,639)
Provision for income taxes	323,593)	372,778)	324,914)	213,752)	100,959)	95,563)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Williams-Sonoma Inc. current increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Williams-Sonoma Inc. deferred decreased from 2022 to 2023 and from 2023 to 2024.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Williams-Sonoma Inc. provision for income taxes increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Williams-Sonoma Inc., effective income tax rate (EITR) reconciliation

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Federal income taxes at the statutory rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
Re-measurement of deferred tax assets and liabilities	0.00%	0.00%	0.00%	0.00%	0.00%	-2.20%
Transition tax	0.00%	0.00%	0.00%	0.00%	0.00%	-0.60%
State income tax rate	4.40%	4.20%	4.10%	3.90%	2.90%	3.80%
Officer’s compensation under Sec.162(m)	0.90%	1.40%	2.00%	1.10%	1.00%	0.00%
Deferred true up	0.20%	0.10%	-0.10%	-0.60%	-1.30%	0.00%
Change in uncertain tax positions	-0.50%	0.30%	-0.50%	0.20%	0.50%	4.10%
Rate differential	-0.30%	-0.70%	-0.60%	-1.10%	-1.80%	-2.30%
Stock-based compensation	-0.30%	-1.70%	-2.90%	-0.20%	0.30%	0.00%
Credits	0.00%	-0.20%	-0.20%	-0.20%	-0.70%	-2.10%
Other	0.00%	0.40%	-0.40%	-0.20%	0.20%	0.60%
Effective tax rate	25.40%	24.80%	22.40%	23.90%	22.10%	22.30%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Williams-Sonoma Inc. effective tax rate increased from 2022 to 2023 and from 2023 to 2024.

Williams-Sonoma Inc., components of deferred tax assets and liabilities

US$ in thousands

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Operating lease liabilities	357,266)	359,001)	321,649)	319,599)	347,693)	—)
Merchandise inventories	37,828)	32,338)	23,513)	20,631)	22,311)	18,703)
Compensation	25,658)	18,960)	27,069)	20,852)	14,350)	11,251)
Gift cards	23,929)	24,632)	21,519)	19,345)	19,520)	14,345)
Accrued liabilities	20,178)	22,356)	17,919)	13,451)	8,440)	13,470)
Executive deferred compensation	11,061)	9,605)	10,476)	8,647)	7,543)	5,739)
Stock-based compensation	10,593)	14,308)	11,879)	9,926)	9,860)	14,281)
State taxes	7,492)	8,084)	7,362)	7,460)	7,546)	7,435)
Loyalty rewards	3,232)	3,734)	5,246)	9,609)	5,252)	—)
State net operating loss	1,153)	2,446)	2,552)	2,609)	3,443)	4,223)
Deferred rent	—)	—)	—)	—)	—)	18,942)
Operating lease right-of-use assets	(310,299)	(321,646)	(285,764)	(283,856)	(309,801)	—)
Property and equipment	(44,622)	(65,039)	(76,643)	(54,724)	(37,309)	(31,557)
Deferred lease incentives	(29,638)	(22,400)	(28,808)	(31,672)	(46,701)	(26,032)
Other	(5,003)	(4,756)	57)	(317)	(3,277)	(5,733)
Valuation allowance	(1,346)	(2,635)	(2,760)	(2,819)	(3,648)	(3,542)
Deferred tax assets (liabilities), net	107,482)	78,988)	55,266)	58,741)	45,222)	41,525)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
Deferred tax assets (liabilities), net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Williams-Sonoma Inc. deferred tax assets (liabilities), net increased from 2022 to 2023 and from 2023 to 2024.

Williams-Sonoma Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
	Deferred tax assets	110,656)	81,389)	56,585)	61,854)	47,977)	44,055)
	Deferred tax liabilities	3,174)	2,401)	1,319)	3,113)	2,755)	2,530)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Williams-Sonoma Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Williams-Sonoma Inc. deferred tax liabilities increased from 2022 to 2023 and from 2023 to 2024.

Williams-Sonoma Inc., adjustments to financial statements

US$ in thousands

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Adjustment to Total Assets
Total assets (as reported)	5,273,548)	4,663,016)	4,625,620)	4,661,424)	4,054,042)	2,812,844)
Less: Noncurrent deferred tax assets, net	110,656)	81,389)	56,585)	61,854)	47,977)	44,055)
Total assets (adjusted)	5,162,892)	4,581,627)	4,569,035)	4,599,570)	4,006,065)	2,768,789)
Adjustment to Total Liabilities
Total liabilities (as reported)	3,145,687)	2,961,965)	2,961,413)	3,010,239)	2,818,182)	1,657,130)
Less: Noncurrent deferred tax liabilities, net	3,174)	2,401)	1,319)	3,113)	2,755)	2,530)
Total liabilities (adjusted)	3,142,513)	2,959,564)	2,960,094)	3,007,126)	2,815,427)	1,654,600)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	2,127,861)	1,701,051)	1,664,207)	1,651,185)	1,235,860)	1,155,714)
Less: Net deferred tax assets (liabilities)	107,482)	78,988)	55,266)	58,741)	45,222)	41,525)
Stockholders’ equity (adjusted)	2,020,379)	1,622,063)	1,608,941)	1,592,444)	1,190,638)	1,114,189)
Adjustment to Net Earnings
Net earnings (as reported)	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)
Add: Deferred income tax expense (benefit)	(29,085)	(23,823)	2,535)	(13,061)	(2,557)	23,639)
Net earnings (adjusted)	920,677)	1,104,081)	1,128,872)	667,653)	353,505)	357,323)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

Williams-Sonoma Inc., Financial Data: Reported vs. Adjusted

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Williams-Sonoma Inc., adjusted financial ratios

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Net Profit Margin
Reported net profit margin	12.25%	13.00%	13.66%	10.04%	6.04%	5.88%
Adjusted net profit margin	11.88%	12.73%	13.69%	9.84%	5.99%	6.30%
Total Asset Turnover
Reported total asset turnover	1.47	1.86	1.78	1.46	1.45	2.02
Adjusted total asset turnover	1.50	1.89	1.80	1.47	1.47	2.05
Financial Leverage
Reported financial leverage	2.48	2.74	2.78	2.82	3.28	2.43
Adjusted financial leverage	2.56	2.82	2.84	2.89	3.36	2.49
Return on Equity (ROE)
Reported ROE	44.63%	66.31%	67.68%	41.23%	28.81%	28.87%
Adjusted ROE	45.57%	68.07%	70.16%	41.93%	29.69%	32.07%
Return on Assets (ROA)
Reported ROA	18.01%	24.19%	24.35%	14.60%	8.78%	11.86%
Adjusted ROA	17.83%	24.10%	24.71%	14.52%	8.82%	12.91%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Williams-Sonoma Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Williams-Sonoma Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Williams-Sonoma Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Williams-Sonoma Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Williams-Sonoma Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Williams-Sonoma Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net earnings	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)
Net revenues	7,750,652)	8,674,417)	8,245,936)	6,783,189)	5,898,008)	5,671,593)
Profitability Ratio
Net profit margin¹	12.25%	13.00%	13.66%	10.04%	6.04%	5.88%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings	920,677)	1,104,081)	1,128,872)	667,653)	353,505)	357,323)
Net revenues	7,750,652)	8,674,417)	8,245,936)	6,783,189)	5,898,008)	5,671,593)
Profitability Ratio
Adjusted net profit margin²	11.88%	12.73%	13.69%	9.84%	5.99%	6.30%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Net revenues
= 100 × 949,762 ÷ 7,750,652 = 12.25%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net revenues
= 100 × 920,677 ÷ 7,750,652 = 11.88%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Williams-Sonoma Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net revenues	7,750,652)	8,674,417)	8,245,936)	6,783,189)	5,898,008)	5,671,593)
Total assets	5,273,548)	4,663,016)	4,625,620)	4,661,424)	4,054,042)	2,812,844)
Activity Ratio
Total asset turnover¹	1.47	1.86	1.78	1.46	1.45	2.02
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net revenues	7,750,652)	8,674,417)	8,245,936)	6,783,189)	5,898,008)	5,671,593)
Adjusted total assets	5,162,892)	4,581,627)	4,569,035)	4,599,570)	4,006,065)	2,768,789)
Activity Ratio
Adjusted total asset turnover²	1.50	1.89	1.80	1.47	1.47	2.05

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 7,750,652 ÷ 5,273,548 = 1.47

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 7,750,652 ÷ 5,162,892 = 1.50

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Williams-Sonoma Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	5,273,548)	4,663,016)	4,625,620)	4,661,424)	4,054,042)	2,812,844)
Stockholders’ equity	2,127,861)	1,701,051)	1,664,207)	1,651,185)	1,235,860)	1,155,714)
Solvency Ratio
Financial leverage¹	2.48	2.74	2.78	2.82	3.28	2.43
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	5,162,892)	4,581,627)	4,569,035)	4,599,570)	4,006,065)	2,768,789)
Adjusted stockholders’ equity	2,020,379)	1,622,063)	1,608,941)	1,592,444)	1,190,638)	1,114,189)
Solvency Ratio
Adjusted financial leverage²	2.56	2.82	2.84	2.89	3.36	2.49

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 5,273,548 ÷ 2,127,861 = 2.48

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 5,162,892 ÷ 2,020,379 = 2.56

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Williams-Sonoma Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net earnings	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)
Stockholders’ equity	2,127,861)	1,701,051)	1,664,207)	1,651,185)	1,235,860)	1,155,714)
Profitability Ratio
ROE¹	44.63%	66.31%	67.68%	41.23%	28.81%	28.87%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings	920,677)	1,104,081)	1,128,872)	667,653)	353,505)	357,323)
Adjusted stockholders’ equity	2,020,379)	1,622,063)	1,608,941)	1,592,444)	1,190,638)	1,114,189)
Profitability Ratio
Adjusted ROE²	45.57%	68.07%	70.16%	41.93%	29.69%	32.07%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 949,762 ÷ 2,127,861 = 44.63%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity
= 100 × 920,677 ÷ 2,020,379 = 45.57%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Williams-Sonoma Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net earnings	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)
Total assets	5,273,548)	4,663,016)	4,625,620)	4,661,424)	4,054,042)	2,812,844)
Profitability Ratio
ROA¹	18.01%	24.19%	24.35%	14.60%	8.78%	11.86%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings	920,677)	1,104,081)	1,128,872)	667,653)	353,505)	357,323)
Adjusted total assets	5,162,892)	4,581,627)	4,569,035)	4,599,570)	4,006,065)	2,768,789)
Profitability Ratio
Adjusted ROA²	17.83%	24.10%	24.71%	14.52%	8.82%	12.91%

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

2024 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 949,762 ÷ 5,273,548 = 18.01%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 920,677 ÷ 5,162,892 = 17.83%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Williams-Sonoma Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Williams-Sonoma Inc. (NYSE:WSM)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Williams-Sonoma Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Williams-Sonoma Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)