Williams-sonoma, Inc. · NYSE:WSM
Williams-sonoma — Investor Presentation (2019)
18 slides from Williams-sonoma's investor presentation, 2019
Slide 1: 2019 Investor Presentation
2019 INVESTOR PRESENTATION WILLIAMS = WILLIAMS POTTERYBARN potterybarnkids POTTERY BARN| teen SONOMA SONOMA ; cre HOME westelm MARK@GRAHAM — REJUVENATION OUTWARD
Slide 2: The macro backdrop remains supportive of consumer spending in Home Furnishings
M AC R O The macro backdrop remains supportive of consumer spending in Home Furnishings ECONOMIC FUNDAMENTALS ARE SOLID THE HOME IS THE MOST IMPORTANT ASSET Personal consumption remains robust and supportive of Home equity has increased more than 2x since 2011 driven by GDP growth home price appreci
Slide 3: Significant opportunity for growth in a highly fragmented market
INDUSTRY WE WILL CONTINUE TO TAKE SHARE AS THE ~$130B U.S. HOME FURNISHINGS MARKET REMAINS HIGHLY FRAGMENTED… Significant opportunity 50 TOP for growth COMPANIES in a highly - including - WILLIAMS- 55% ~25,000 fragmented SONOMA,INC. 45% of total revenues COMPANIES of total revenues market …AND THE S
Slide 4: World's largest design-led, digital-first home retailer
As the world’s largest design-led, digital-first home retailer, we are shaping the future of shopping. 3
Slide 5: We are a digital-first company with retail stores as a competitive advantage
D I G I TA L - F I R S T We are a digital-first company with retail stores as a competitive advantage 25 >55% 10% TOP online retailer in of sales are E-commerce North America E-commerce comp growth YTD Source: 2018 Internet Retailer Top 500 4
Slide 6: A highly differentiated platform to launch and scale new businesses
P L AT F O R M We have built a highly differentiated platform to launch and scale new businesses UNIQUE PLATFORM multi-channel model | multi-brand portfolio | vertically integrated supply chain | leadership and culture HISTORY OF SUCCESSFUL NEW BUSINESSES AND INITIATIVES 1956 1986 1999 2001 2003 200
Slide 7: Runway for growth across aesthetics and price points
GROWTH TRADITIONAL Runway for growth WSH across RJ aesthetics and price points Aesthetics PB WE MODERN LOW PRICED HIGH PRICED Price Points 6
Slide 8: West Elm is our biggest growth opportunity
WE HAVE THE LEVERS TO ACCELERATE GROWTH AND GROWTH LEVER: BRAND DOUBLE BRAND REVENUES TO $3B GLOBALLY West Elm DESIGN AND ➡ Industry-leading original design content with 90% of is our VALUES LEADERSHIP designs developed internally ➡ Focus on function and biggest ➡ Expansion in core product categorie
Slide 9: A powerful, proven platform to grow and scale new businesses
GROWTH LEVER: BRAND A powerful, proven platform to grow and scale new businesses across lifestyles and life stages POTTERY BARN FAMILY OF BRANDS REPRESENT OVER $3B IN REVENUES TODAY EXPECTANT BABY TODDLER KID TWEEN TEEN COLLEGE YOUNG ADULT ADULT EMPTY NESTER * * * M A R K ET P L AC E * * NEW BUSINES
Slide 10: Return to strong, profitable growth through innovation and customer engagement
GROWTH LEVER: BRAND Return to strong, profitable growth through innovation, relevancy and customer engagement WE ARE AGGRESSIVELY EXECUTING ON OUR TRANSFORMATION PLAN ➡ Lead with product design and authenticity ➡ Pivot our focus to digital while reducing unprofitable stores ➡ Expand proprietary and
Slide 11: Unlocking our platform through cross-brand initiatives
GROWTH LEVER: CROSS-BRAND We are unlocking the power of our unique platform through cross-brand initiatives SIGNIFICANT REVENUE GROWTH OPPORTUNITY GROWING NUMBER OF CROSS-BRAND INITIATIVES WITH CROSS-BRAND CUSTOMERS TO DRIVE INCREMENTAL REVENUES 4x more spend than single brand customers 30% of total
Slide 12: The Key loyalty program is highly accretive to growth
GROWTH LEVER: CROSS-BRAND The Key loyalty program is highly accretive to growth ALREADY AT SCALE BUT PLENTY OF ROOM TO GROW SIGNIFICANTLY INCREASE OUR SHARE OF WALLET AND ENHANCE CUSTOMER EXPERIENCE 6.4M members since launch 2.5 years ago Increase customer engagement and brand loyalty 3x more spend
Slide 13: We are aggressively pursuing the B2B opportunity
GROWTH LEVER: CROSS-BRAND We are aggressively pursuing the B2B opportunity THE B2B MARKET IS LARGE, FRAGMENTED & RIPE FOR DISRUPTION OUR COMPETITIVE EDGE OVER EXISTING PLAYERS $78B U.S. B2B MARKET ($B) ➡ Contract Furniture 12.5 Building Products 10.1 total market Paint 8.6 Design and product Breadth
Slide 14: Our path to $2B in B2B revenues
GROWTH LEVER: CROSS-BRAND Our path to $2B in B2B revenues WE ARE PURSUING TARGET ACCOUNTS ACROSS 7 INDUSTRY VERTICALS HOSPITALITY RESIDENTIAL EDUCATION Hotels, Resorts, Single and Educational Restaurants, Multi-Family Designers Establishments and Country Clubs and Developers University Housing COMME
Slide 15: Global expansion is a long-term growth opportunity
WITHIN 3 YEARS OUR GLOBAL FOOTPRINT WILL GROW TO 20 COUNTRIES GROWTH LEVER: I N T E R N AT I O N A L WITH A COMBINED ADDRESSABLE MARKET OF $330B Global W. EUROPE MARKET expansion is $120B a long-term growth CHINA/SE ASIA CANADA/MEXICO $150B opportunity $20B MIDDLE EAST AUSTRALIA $20B INDIA MARKET $1
Slide 16: Superior customer service is growth accelerator
TECHNOLOGY INNOVATION DRIVING A BEST-IN-CLASS G R O W T H A C C E L E R AT O R : CUSTOMER EXPERIENCE OMNI-CHANNEL EXPERIENCE Superior CULTURE ASSETS GOALS + OUTCOME customer INNOVATION 1 #1 FURNITURE SUPPLY CHAIN service is Faster time to market for growth focused ideas Data 3D oxygen for EXPERIMENT
Slide 17: World's largest design-led, digital-first home retailer
As the world’s largest design-led, digital-first home retailer, we are shaping the future of shopping. 16
Slide 18: Williams-Sonoma, Inc.
WILLIAMS-SONOMA, INC. WILLIAMS WILLIAMS POTTERY BARN potterybarnkids POTTERY BAR\N| teen ONOWIN ONCE en SOME westelm MARK@GRAHAM REJUVENATION OUTWARD