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Report Date : |
30.10.2013 |
IDENTIFICATION DETAILS
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Name : |
WILLIAMS-SONOMA, INC. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
09.04.1973 |
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Legal Form : |
Public Company |
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Line of Business : |
Subject operates as a multi-channel specialty retailer of home
products |
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No. of Employees : |
7,200 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
United States - ECONOMIC OVERVIEW
The
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Source : CIA |
Company name: WILLIAMS-SONOMA, INC.
Address: 3250 Van Ness Avenue, San Francisco,
CA 94109 - USA
Telephone: +1
415-421-7900
Fax: +1 415-616-8359
Website: www.williams-sonomainc.com
Corporate ID#: C0678218
State:
Judicial form: Public Company (NYSE = WSM)
Date incorporated: April 9,
1973
Date founded: 1956
Stock: 95,704,002 shares issued and
outstanding
(as
of September 1, 2013)
Value: USD
0.01= par value
Name of manager: Laura
J. ALBER
Business:
Williams-Sonoma, Inc. operates as a multi-channel specialty retailer of
home products.
It operates in two segments, Direct-to-Customer and Retail.
Its Williams-Sonoma stores offer cooking, dining, and entertaining
products, including cookware, tools, electrics, cutlery, tabletop and bar,
outdoor, and cookbooks, as well as wedding registry; Pottery Barn stores offer
lifestyle displays; Pottery Barn Kids stores offer products for creating spaces
where children play, laugh, learn, and grow, as well as baby registry
solutions; West Elm stores offer home furnishing products, including furniture,
textiles, decorative accessories, lighting, and tabletop items, as well as home
toolkit in four product categories comprising kitchen, garden, care and repair,
and personal care;
PBteen stores offer a line of furniture, bedding, lighting, decorative
accents, and more for teen bedrooms, dorm rooms, study spaces, and lounges;
Rejuvenation stores offer lighting and home-goods product lines that
span periods back to the 1870s; and Mark and Graham stores offer men’s and
women’s accessories, gifts, small leather goods, jewelry, entertaining and bar,
home décor, and do-it-yourself wrapping supplies and seasonal items. The
company also sells products through its e-commerce Websites, including
williams-sonoma.com, potterybarn.com, potterybarnkids.com, pbteen.com,
westelm.com, rejuvenation.com, and markandgraham.com; and direct-mail catalogs
comprising Williams-Sonoma, Pottery Barn, Pottery Barn Bed and Bath, Pottery
Barn Kids, PBteen, West Elm, Rejuvenation, and Mark and Graham.
As of May 1, 2013, it marketed products through 7 e-commerce Websites, 8
direct mail catalogs, and 581 stores.
The company operates in the
Williams-Sonoma, Inc. was founded in 1956 and is based in
EIN: 20-3424952
Staff: 7,200
Operations & branches:
At above address, we find the corporate headquarters, on lease.
The Company maintains numerous
branches in the U.S including the one located:
Shareholders:
As of 09-30-2013, 89% of the stock was held by institutional and mutual
fund owners, including:
|
JP Morgan Chase & Company |
10.57% |
|
Capital Research Global Investors |
7.02% |
|
Blackhill Capital, Inc. |
5.06% |
|
American Mutual Fund Inc |
4.93% |
|
Select Equity Group, Inc. |
4.47% |
Management:
Laura J. ALBER, President, Director and CEO
Ms. Laura J. Alber has been the Chief Executive Officer of
Williams-Sonoma Inc. since May 26, 2010 and its President since July 2006.
Ms. Alber served as the President of Pottery Barn Brands, a subsidiary
of Williams-sonoma Inc. from February 11, 2002 to 2006. She was responsible for
the Pottery Barn Merchandising and Pottery Barn Kids stores.
Prior to 2002, she served in various brand management roles, including
Executive Vice President of Pottery Barn from 2000 to 2002 and Senior Vice
President of Pottery Barn Catalogs and Pottery Barn Kids Retail from 1999 to
2000 and Divisional Vice President of Pottery Barn Catalog from 1997 to 1999.
She has been a Director of Williams-sonoma Inc. since 2010 and RealD
Inc. since February 2013. Ms. Alber has been the visionary leader behind
several of Williams- Sonoma's most impressive growth strategies, including the
multi-channel expansion of the Pottery Barn brand and the creation of the
Pottery Barn Kids, Pottery Barn Bed+
She joined Williams-Sonoma in 1995 as a Senior Buyer for the Pottery
Barn brand. Ms. Alber served as a Director of Pottery Barn Catalog from 1996 to
1997.
She received a B.A. in Psychology from the
Julie WHALEN is Executive Vice President and CFO
Ms. Julie P. Whalen has been Chief Financial Officer and Executive Vice
President of Williams-Sonoma Inc. since July 27, 2012 and has been its
Treasurer since 2011. Ms. Whalen serves as Principal Accounting Officer of
Williams-Sonoma Inc. She served as Acting Chief Financial Officer of
Williams-Sonoma Inc. since March 6, 2012. She served as Senior Vice President
of Williams-Sonoma Inc. until July 27, 2012.
Ms. Whalen joined the Williams-Sonoma in 2001 and was promoted to Vice
President, Corporate Controller in 2003.
Ms. Whalen began her career in public accounting with KPMG Peat Marwick.
She is a Certified Public Accountant and holds a law degree from
Subsidiaries &
Partnership:
|
Williams-Sonoma Stores, Inc. |
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Williams-Sonoma DTC, Inc. |
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On August 28, 2013, Williams-Sonoma Inc. announced earnings results for
the second quarter and six months ended August 4, 2013.
For the quarter, net revenues grew 12.3% to $982 million against $874
million reported a year ago. Comparable brand revenue growth increased 8.4% on
top of 7.4% reported a year ago. Diluted earnings per share grew 14.0% to $0.49
compared to $0.43 reported a year ago. Operating income was $78.09 million
compared to $70.10 million reported a year ago. Earnings before income taxes
were $78.21 million compared to $70.27 million reported a year ago. Net
earnings were $48.92 million compared to $43.38 million reported a year ago.
For the year to date, net revenues were $1,870.02 million against
$1,691.9 million a year ago. Operating income was $141.87 million against
$119.43 million a year ago. Earnings before income taxes were $142.18 million
against $119.78 million a year ago. Net earnings were $88.38 million against
$74.1 million a year ago.
Diluted earnings per share were $0.89 against $0.73 a year ago. Net cash
provided by operating activities was $64.06 million against $38.74 million a
year ago. Purchases of property and equipment were $98 million against $69.61
million a year ago.
Net revenues in the third quarter of fiscal 2013 are expected to be in
the range of $1,020 million to $1,040 million. Comparable brand revenue growth
in third quarter of fiscal 2013 is expected to be in the range of 4% to 6%.
Diluted EPS in third quarter of fiscal 2013 is expected to be in the range of
$0.51 to $0.54. The company is on track to achieve another record year of
revenue and deliver a double-digit increase in earnings per share. Due to its
performance year-to-date and its confidence in the remainder of the year, the
company is raising 2013 revenue guidance to a range of $4.26 billion to $4.34
billion and non-GAAP diluted EPS guidance to a range of $2.69 to $2.79. The
company expects comparable brand revenue Growth of 4% to 6%, operating margin
of 10.0% to 10.3%, income tax rate of 38.0% to 38.5%, capital spending of $200
million to $220 million and depreciation and amortization of $150 million to
$160 million. For the full year, as a result of this outperformance in the
second quarter, the company raised guidance for revenue by $40 million, and
raised guidance for diluted earnings per share by $0.02.
On attachment
- 10K 2013 (year ending
January 2013)
- 2nd 10Q 2013
Banks: Bank of
Bank of
JP Morgan Chase Bank
Legal filings & complaints:
As of today date, there are several legal filing pending with various Courts,
involving the Company as plaintiff or defendant.
Secured debts summary (UCC):
Several
Trade references:
Date reported: October 2013
High credit: USD 100,000
Now owing: 0
Past due: 0
Last purchase: September 2013
Line of business: Office supply
Paying status: On terms
Date reported: October 2013
High credit: USD 9,000,000+
Now owing: 0
Past due: 0
Last purchase: September 2013
Line of business: Payroll
Paying status: As agreed
Date reported: October 2013
High credit: USD 30,000+
Now owing: 0
Past due: 0
Last purchase: September 2013
Line of business: Telecommunications
Paying status: On terms
Domestic credit history:
National Credit Bureaus
gave a satisfying credit rating.
International credit history:
Payments of imports are currently made on terms.
Other comments:
The Company maintains a
strong business.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is low.
Our opinion:
A business connection may
be conducted.
Standard
& Poor’s
|
|
|
Publication
date: 05-Aug-2011 20:13:14 EST |
·
We have also removed both the short- and long-term ratings
from CreditWatch negative.
·
The downgrade reflects our opinion that the fiscal
consolidation plan that Congress and the Administration recently agreed to
falls short of what, in our view, would be necessary to stabilize the
government's medium-term debt dynamics.
·
More broadly, the downgrade reflects our view that the
effectiveness, stability, and predictability of American policymaking and
political institutions have weakened at a time of ongoing fiscal and economic
challenges to a degree more than we envisioned when we assigned a negative
outlook to the rating on April 18, 2011.
·
Since then, we have changed our view of the difficulties in
bridging the gulf between the political parties over fiscal policy, which makes
us pessimistic about the capacity of Congress and the Administration to be able
to leverage their agreement this week into a broader fiscal consolidation plan
that stabilizes the government's debt dynamics any time soon.
·
The outlook on the long-term rating is negative. We could
lower the long-term rating to 'AA' within the next two years if we see that
less reduction in spending than agreed to, higher interest rates, or new fiscal
pressures during the period result in a higher general government debt
trajectory than we currently assume in our base case.
The transfer and convertibility (T&C) assessment of the
debt service--remains
'AAA'.
We lowered our long-term
rating on the U.S. because we believe that the prolonged controversy over
raising the statutory debt ceiling and the related fiscal policy debate
indicate that further near-term progress containing the growth in public
spending, especially on entitlements, or on reaching an agreement on raising
revenues is less likely than we previously assumed and will remain a
contentious and fitful process. We also believe that the fiscal consolidation
plan that Congress and the Administration agreed to this week falls short of
the amount that we believe is necessary to stabilize the general government
debt burden by the middle of the decade.
Our lowering of the
rating was prompted by our view on the rising public debt burden and our
perception of greater policymaking uncertainty, consistent with our criteria
(see "Sovereign Government Rating Methodology and
Assumptions ," June 30, 2011,
especially Paragraphs 36-41). Nevertheless, we view the
We have taken the ratings
off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment
of 2011 has removed any perceived immediate threat of payment default posed by
delays to raising the government's debt ceiling. In addition, we believe that
the act provides sufficient clarity to allow us to evaluate the likely course
of
The political brinksmanship of recent months highlights what we see as
the containment of which
we and most other independent observers regard as key to long-term fiscal
sustainability.
Our opinion is that
elected officials remain wary of tackling the structural issues required to
effectively address the rising U.S. public debt burden in a manner consistent
with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and
Assumptions," June 30, 2011,
especially Paragraphs 36-41). In our view, the difficulty in framing a
consensus on fiscal policy weakens the government's ability to manage public
finances and diverts attention from the debate over how to achieve more balanced
and dynamic economic growth in an era of fiscal stringency and private-sector
deleveraging (ibid). A new political consensus might (or might not) emerge
after the 2012 elections, but we believe that by then, the government debt
burden will likely be higher, the needed medium-term fiscal adjustment
potentially greater, and the inflection point on the U.S. population's
demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely
Cost Even More Green, Now,"
June 21, 2011).
Standard & Poor's
takes no position on the mix of spending and revenue measures that Congress and
the Administration might conclude is appropriate for putting the
The act calls for as much
as $2.4 trillion of reductions in expenditure growth over the 10 years through
2021. These cuts will be implemented in two steps: the $917 billion agreed to
initially, followed by an additional $1.5 trillion that the newly formed
Congressional Joint Select Committee on Deficit Reduction is supposed to
recommend by November 2011. The act contains no measures to raise taxes or
otherwise enhance revenues, though the committee could recommend them.
The act further provides
that if Congress does not enact the committee's recommendations, cuts of $1.2
trillion will be implemented over the same time period. The reductions would
mainly affect outlays for civilian discretionary spending, defense, and
Medicare. We understand that this fall-back mechanism is designed to encourage
Congress to embrace a more balanced mix of expenditure savings, as the
committee might recommend.
We note that in a letter
to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated
total budgetary savings under the act to be at least $2.1 trillion over the
next 10 years relative to its baseline assumptions. In updating our own fiscal
projections, with certain modifications outlined below, we have relied on the
CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to
include the CBO assumptions contained in its Aug. 1 letter to Congress. In
general, the CBO's "Alternate Fiscal Scenario" assumes a continuation
of recent Congressional action overriding existing law.
We view the act's
measures as a step toward fiscal consolidation. However, this is within the
framework of a legislative mechanism that leaves open the details of what is
finally agreed to until the end of 2011, and Congress and the Administration
could modify any agreement in the future. Even assuming that at least $2.1
trillion of the spending reductions the act envisages are implemented, we
maintain our view that the
Compared with previous
projections, our revised base case scenario now assumes that the 2001 and 2003
tax cuts, due to expire by the end of 2012, remain in place. We have changed
our assumption on this because the majority of Republicans in Congress continue
to resist any measure that would raise revenues, a position we believe Congress
reinforced by passing the act. Key macroeconomic assumptions in the base case
scenario include trend real GDP growth of 3% and consumer price inflation near
2% annually over the decade.
Our revised upside
scenario--which, other things being equal, we view as consistent with the
outlook on the 'AA+' long-term rating being revised to stable--retains these
same macroeconomic assumptions. In addition, it incorporates $950 billion of
new revenues on the assumption that the 2001 and 2003 tax cuts for high earners
lapse from 2013 onwards, as the Administration is advocating. In this scenario,
we project that the net general government debt would rise from an estimated
74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.
Our revised downside
scenario--which, other things being equal, we view as being consistent with a possible
further downgrade to a 'AA' long-term rating--features less-favorable
macroeconomic assumptions, as outlined below and also assumes that the second
round of spending cuts (at least $1.2 trillion) that the act calls for does not
occur. This scenario also assumes somewhat higher nominal interest rates for
U.S. Treasuries. We still believe that the role of the U.S. dollar as the key
reserve currency confers a government funding advantage, one that could change
only slowly over time, and that Fed policy might lean toward continued loose
monetary policy at a time of fiscal tightening. Nonetheless, it is possible
that interest rates could rise if investors re-price relative risks. As a
result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in
10-year bond yields relative to the base and upside cases from 2013 onwards. In
this scenario, we project the net public debt burden would rise from 74% of GDP
in 2011 to 90% in 2015 and to 101% by 2021.
Our revised scenarios
also take into account the significant negative revisions to historical GDP
data that the Bureau of Economic Analysis announced on July 29. From our
perspective, the effect of these revisions underscores two related points when
evaluating the likely debt trajectory of the
When comparing the U.S.
to sovereigns with 'AAA' long-term ratings that we view as relevant
peers--Canada, France, Germany, and the U.K.--we also observe, based on our
base case scenarios for each, that the trajectory of the U.S.'s net public debt
is diverging from the others. Including the
Standard & Poor's
transfer T&C assessment of the
The outlook on the
long-term rating is negative. As our downside alternate fiscal scenario
illustrates, a higher public debt trajectory than we currently assume could
lead us to lower the long-term rating again. On the other hand, as our upside
scenario highlights, if the recommendations of the Congressional Joint Select
Committee on Deficit Reduction--independently or coupled with other
initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high
earners--lead to fiscal consolidation measures beyond the minimum mandated, and
we believe they are likely to slow the deterioration of the government's debt
dynamics, the long-term rating could stabilize at 'AA+'.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.46 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.84.72 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not cause
fatal effect. Satisfactory capability for payment of interest and principal
sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.