Williams-Sonoma Inc. (NYSE:WSM) Q4 2014 Earnings Conference Call - Final Transcript

Mar 18, 2015 • 05:00 pm ET

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Williams-Sonoma Inc. (NYSE:WSM) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Williams-Sonoma Inc. Fourth Quarter and Fiscal Year 2014 Earnings Conference Call. At this time all participants are in a listen only mode. We will conduct a question-and-answer session after the presentation. This call is being recorded.

And I would now like to turn the call over to Gabrielle Rabinovitch, Vice President, Investor Relations to discuss non-GAAP financial measures and forward looking statements. Please go ahead.

Executive
Gabrielle Rabinovitch

Thank you, Matt. Good afternoon. This call should be considered in conjunction with the press releases that we issued earlier today. Our earnings press release and this call may contain non-GAAP financial measures that exclude the impact of unusual business events. A reconciliation of any of these non-GAAP financial measures to the most directly comparable GAAP financial measures and our explanation of why these non-GAAP financial measures may be useful are discussed in our release.

In the fourth quarter of 2014, we recognized non-GAAP income associated with the Visa Mastercard antitrust litigation settlement. This income was recognized as corporate unallocated income and did not impact the ecommerce and retail reportable segments. Additionally, as a reminder, when we discuss our fiscal year numbers, we recognized non-GAAP expense of $0.02 in the first quarter of fiscal 2013, which was also recognized in corporate unallocated. The remainder of the discussion today will relate to results excluding these non-GAAP items.

This call also contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which address the financial condition, results of operations, business initiatives, trends, guidance, growth plans, and prospects of the company in 2015 and beyond and are subject to risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.

Please refer to the company's current press releases and SEC filings, including the most recent 10-K and 10-Q for more information on these risks and uncertainties. The company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call.

I will now turn the conference call over to Laura Alber, our President and Chief Executive Officer, to discuss our results.

Executive
Laura Alber

Thank you, Gabrielle. Good afternoon and thank you all for joining us today. On the call with me are Julie Whalen, our Chief Financial Officer and Pat Connolly, our Chief Strategy and Business Development Officer. I'm pleased to report today on our strong brand performance for the fourth quarter and the year and share our opportunities for the future.

In 2014, we delivered EPS of $3.20 on top of $2.84 last year, exceeding guidance that we had raised twice during the year. We experienced growth in all of our brands and across our channel, highlighted by our highly profitable ecommerce business, which grew to over 50% of total revenue. We achieved these results while also continuing to invest in our strong brands and multichannel platform. We implemented technology enhancements to improve customer service and advance the flexibility and capacity of our ecommerce platform.

We