Williams-Sonoma Inc (NYSE:WSM) Q1 2020 Earnings Conference Call - Final Transcript

May 28, 2020 • 05:00 pm ET


Williams-Sonoma Inc (NYSE:WSM) Q1 2020 Earnings Conference Call - Final Transcript


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Good day. Welcome to the Williams-Sonoma, Inc. First Quarter 2020 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.

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

Elise Wang

Thank you. Good afternoon. This call should be considered in conjunction with the press release that we issued earlier today. Unless indicated otherwise, our discussion today will relate to results and guidance based on certain non-GAAP measures. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures and our explanation of why the non-GAAP financial measures may be useful are discussed in Exhibit 1 of our press release.

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, growth plans, and prospects of the Company in 2020 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 release and SEC filings, including the most recent 10-K 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.

Laura J. Alber

Thank you, Elise. Good afternoon everyone and thank you all for joining us. Also on the call with me today are Julie Whalen, our Chief Financial Officer; Felix Carbullido, our Chief Marketing Officer; and Yasir Anwar, our Chief Technology Officer.

Before we get started on our Q1 results, we hope you and your families sincerely are safe and healthy during this time and our deep gratitude goes to all of the people who are taking care of our communities in the fight against this pandemic. I want to also thank all of our Williams-Sonoma, Inc. associates for their incredible agility, commitment and partnership in responding to this crisis. Our people are at the heart of our Company and we are inspired by how they've adapted to serve our customers in these times.

In the first quarter we are proud to deliver an overall Company comp growth of 2.6%, despite having all of our 616 stores closed for more than half of the quarter. Our teams maximized demand online, leaning into new and innovative ways to engage and serve our customers virtually driving DTC comps over 31% in the first quarter. These results reflect our powerful digital first platform and the relevance of our high-quality sustainable products and superior customer service.

The strategic investments that we have made over the years give us a competitive advantage in this disrupted environment that favors digital. Nothing makes me prouder though