Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Williams-Sonoma Inc., consolidated income statement

US$ in thousands

12 months ended:	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Net revenues	7,750,652)	8,674,417)	8,245,936)	6,783,189)	5,898,008)	5,671,593)
Cost of goods sold	(4,447,051)	(4,996,684)	(4,613,973)	(4,146,920)	(3,758,916)	(3,570,580)
Gross profit	3,303,601)	3,677,733)	3,631,963)	2,636,269)	2,139,092)	2,101,013)
Selling, general and administrative expenses	(2,059,408)	(2,179,311)	(2,178,847)	(1,725,572)	(1,673,218)	(1,665,060)
Operating income	1,244,193)	1,498,422)	1,453,116)	910,697)	465,874)	435,953)
Interest income (expense), net	29,162)	2,260)	(1,865)	(16,231)	(8,853)	(6,706)
Earnings before income taxes	1,273,355)	1,500,682)	1,451,251)	894,466)	457,021)	429,247)
Income taxes	(323,593)	(372,778)	(324,914)	(213,752)	(100,959)	(95,563)
Net earnings	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)

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 performance between February 2019 and January 2024 is characterized by a period of aggressive growth followed by a moderate contraction in the final year. Net revenues expanded steadily from 5.67 billion US dollars in 2019 to a peak of 8.67 billion US dollars in 2023, before declining to 7.75 billion US dollars in 2024. This trajectory indicates a significant acceleration in scale during the middle of the period, which translated into substantially higher profitability across all levels of the income statement.

Revenue and Gross Profitability: Gross profit exhibited a strong upward trend, rising from 2.10 billion US dollars in 2019 to a peak of 3.68 billion US dollars in 2023. The gross profit margin showed marked improvement, particularly between 2021 and 2022, suggesting enhanced pricing power or a reduction in the relative cost of goods sold. While revenues decreased in 2024, the gross profit remained relatively resilient compared to 2021 levels, maintaining a higher margin baseline than that observed at the start of the analysis period.
Operating Performance and Expense Management: Operating income grew exponentially from 435.95 million US dollars in 2019 to 1.50 billion US dollars in 2023. This growth was driven by strong operating leverage, as selling, general, and administrative expenses grew at a slower pace than revenues between 2021 and 2023. Although operating income retreated to 1.24 billion US dollars in 2024 in alignment with the revenue decline, it remains nearly three times higher than the 2019 baseline.
Net Earnings and Non-Operating Items: Net earnings followed a similar pattern to operating income, increasing from 333.68 million US dollars in 2019 to peak at 1.13 billion US dollars in 2023. A notable shift is observed in interest income and expenses; the company transitioned from recording net interest expenses between 2019 and 2022 to recording net interest income in 2023 and 2024. This shift culminated in a significant net interest gain of 29.16 million US dollars in 2024, which partially mitigated the impact of declining operating income on the final net earnings of 949.76 million US dollars.

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Williams-Sonoma Inc. (NYSE:WSM)

Income Statement