Return on Equity (ROE)
since 2005
Calculation
Williams-Sonoma Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jan 28, 2024 | 44.63% | = | 100 | × | 949,762) | ÷ | 2,127,861) |
| Jan 29, 2023 | 66.31% | = | 100 | × | 1,127,904) | ÷ | 1,701,051) |
| Jan 30, 2022 | 67.68% | = | 100 | × | 1,126,337) | ÷ | 1,664,207) |
| Jan 31, 2021 | 41.23% | = | 100 | × | 680,714) | ÷ | 1,651,185) |
| Feb 2, 2020 | 28.81% | = | 100 | × | 356,062) | ÷ | 1,235,860) |
| Feb 3, 2019 | 28.87% | = | 100 | × | 333,684) | ÷ | 1,155,714) |
| Jan 28, 2018 | 21.56% | = | 100 | × | 259,545) | ÷ | 1,203,566) |
| Jan 29, 2017 | 24.47% | = | 100 | × | 305,387) | ÷ | 1,248,220) |
| Jan 31, 2016 | 25.88% | = | 100 | × | 310,068) | ÷ | 1,198,226) |
| Feb 1, 2015 | 25.22% | = | 100 | × | 308,854) | ÷ | 1,224,706) |
| Feb 2, 2014 | 22.21% | = | 100 | × | 278,902) | ÷ | 1,256,002) |
| Feb 3, 2013 | 19.61% | = | 100 | × | 256,730) | ÷ | 1,309,138) |
| Jan 29, 2012 | 18.88% | = | 100 | × | 236,931) | ÷ | 1,255,262) |
| Jan 30, 2011 | 15.91% | = | 100 | × | 200,227) | ÷ | 1,258,863) |
| Jan 31, 2010 | 6.39% | = | 100 | × | 77,442) | ÷ | 1,211,595) |
| Feb 1, 2009 | 2.62% | = | 100 | × | 30,024) | ÷ | 1,147,984) |
| Feb 3, 2008 | 16.79% | = | 100 | × | 195,757) | ÷ | 1,165,723) |
| Jan 28, 2007 | 18.14% | = | 100 | × | 208,868) | ÷ | 1,151,431) |
| Jan 29, 2006 | 19.09% | = | 100 | × | 214,866) | ÷ | 1,125,318) |
| Jan 30, 2005 | 19.97% | = | 100 | × | 191,234) | ÷ | 957,662) |
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), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
1 US$ in thousands
The financial performance of the organization from 2005 to 2024 is characterized by three distinct phases: a period of stability followed by a sharp contraction, a decade of steady recovery and growth, and a recent era of exceptional profitability and subsequent normalization.
- Cyclical Performance and Volatility
- A significant period of volatility occurred between 2008 and 2010. Return on equity (ROE) declined from 16.79% in 2008 to a nadir of 2.62% in 2009, coinciding with a sharp reduction in net earnings from US$ 195.7 million to US$ 30.0 million. Recovery began in 2010 and returned to pre-crisis levels by 2011, with ROE climbing back to 15.91%.
- Sustainable Growth Phase
- From 2011 to 2019, a consistent upward trend in profitability is observed. Net earnings grew from US$ 200.2 million to US$ 333.7 million, while ROE generally trended upward, peaking at 28.87% in 2019. During this interval, stockholders' equity remained relatively stable, fluctuating between US$ 1.1 billion and US$ 1.3 billion, indicating that the increase in ROE was driven primarily by earnings growth rather than aggressive equity reduction.
- Accelerated Profitability and Peak ROE
- A period of exponential growth is evident between 2020 and 2023. Net earnings surged from US$ 356.1 million in 2020 to a peak of US$ 1.128 billion in 2023. This resulted in a dramatic escalation of ROE, which reached 67.68% in 2022 and 66.31% in 2023. This surge suggests a period of high operational efficiency and significant margin expansion.
- Recent Normalization and Equity Expansion
- In 2024, a trend toward normalization is observed. While net earnings remained high at US$ 949.8 million, ROE decreased to 44.63%. This decline is attributable to both a reduction in net earnings from the prior year's peak and a substantial increase in stockholders' equity, which rose to US$ 2.128 billion, thereby increasing the denominator of the ROE calculation.
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Comparison to Competitors
Williams-Sonoma Inc., ROE, long-term trends, comparison to competitors
| Williams-Sonoma Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 28, 2024 | 44.63% | 20.72% | 1,450.48% | — | 61.27% |
| Jan 29, 2023 | 66.31% | 15.07% | 1,095.07% | — | 54.97% |
| Jan 30, 2022 | 67.68% | -1.86% | — | — | 54.69% |
| Jan 31, 2021 | 41.23% | 24.13% | 390.00% | 406.05% | 1.55% |
| Feb 2, 2020 | 28.81% | 22.84% | — | 217.09% | 55.01% |
| Feb 3, 2019 | 28.87% | 18.67% | — | 63.50% | 60.61% |
| Jan 28, 2018 | 21.56% | 23.13% | 593.54% | 58.69% | 50.66% |
| Jan 29, 2017 | 24.47% | 10.95% | 183.64% | 48.07% | 50.95% |
| Jan 31, 2016 | 25.88% | 12.29% | 110.97% | 33.26% | 52.88% |
| Feb 1, 2015 | 25.22% | 4.45% | 68.06% | 27.07% | 51.95% |
| Feb 2, 2014 | 22.21% | -2.24% | 43.00% | 19.29% | 50.53% |
| Feb 3, 2013 | 19.61% | 2.81% | 25.51% | 14.14% | 52.01% |
| Jan 29, 2012 | 18.88% | -0.48% | 21.70% | 11.12% | 46.62% |
| Jan 30, 2011 | 15.91% | 8.13% | 17.67% | 11.10% | 43.33% |
| Jan 31, 2010 | 6.39% | 16.78% | 13.72% | 9.35% | 42.00% |
| Feb 1, 2009 | 2.62% | 17.16% | 12.71% | 12.16% | 41.26% |
| Feb 3, 2008 | 16.79% | 24.14% | 24.81% | 17.45% | 36.21% |
| Jan 28, 2007 | 18.14% | 39.77% | 23.02% | 19.75% | 32.23% |
| Jan 29, 2006 | 19.09% | 44.08% | 21.70% | 19.32% | 36.48% |
| Jan 30, 2005 | 19.97% | 145.93% | 20.70% | 18.86% | 40.17% |
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), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Williams-Sonoma Inc., ROE, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Williams-Sonoma Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 28, 2024 | 44.63% | 31.01% |
| Jan 29, 2023 | 66.31% | 29.39% |
| Jan 30, 2022 | 67.68% | 17.48% |
| Jan 31, 2021 | 41.23% | 35.05% |
| Feb 2, 2020 | 28.81% | 40.86% |
| Feb 3, 2019 | 28.87% | 40.77% |
| Jan 28, 2018 | 21.56% | 44.19% |
| Jan 29, 2017 | 24.47% | 38.11% |
| Jan 31, 2016 | 25.88% | 37.81% |
| Feb 1, 2015 | 25.22% | 32.09% |
| Feb 2, 2014 | 22.21% | 24.32% |
| Feb 3, 2013 | 19.61% | 19.26% |
| Jan 29, 2012 | 18.88% | 15.66% |
| Jan 30, 2011 | 15.91% | 15.30% |
| Jan 31, 2010 | 6.39% | 14.12% |
| Feb 1, 2009 | 2.62% | 14.43% |
| Feb 3, 2008 | 16.79% | 22.32% |
| Jan 28, 2007 | 18.14% | 22.78% |
| Jan 29, 2006 | 19.09% | 21.78% |
| Jan 30, 2005 | 19.97% | 21.81% |
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), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
Comparison to Industry (Consumer Discretionary)
Williams-Sonoma Inc., ROE, long-term trends, comparison to industry (consumer discretionary)
| Williams-Sonoma Inc. | Consumer Discretionary | |
|---|---|---|
| Jan 28, 2024 | 44.63% | 27.93% |
| Jan 29, 2023 | 66.31% | 29.93% |
| Jan 30, 2022 | 67.68% | 20.78% |
| Jan 31, 2021 | 41.23% | 33.71% |
| Feb 2, 2020 | 28.81% | 24.49% |
| Feb 3, 2019 | 28.87% | 34.62% |
| Jan 28, 2018 | 21.56% | 34.33% |
| Jan 29, 2017 | 24.47% | 22.85% |
| Jan 31, 2016 | 25.88% | 28.74% |
| Feb 1, 2015 | 25.22% | 29.03% |
| Feb 2, 2014 | 22.21% | 20.60% |
| Feb 3, 2013 | 19.61% | 20.34% |
| Jan 29, 2012 | 18.88% | 21.97% |
| Jan 30, 2011 | 15.91% | 34.92% |
| Jan 31, 2010 | 6.39% | 24.34% |
| Feb 1, 2009 | 2.62% | 25.32% |
| Feb 3, 2008 | 16.79% | 1.64% |
| Jan 28, 2007 | 18.14% | 16.06% |
| Jan 29, 2006 | 19.09% | 3.84% |
| Jan 30, 2005 | 19.97% | 19.92% |
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), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).