Pier 1 2007 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 2007 Pier 1 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 133

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133

FISCAL YEARS ENDED MARCH 3, 2007 AND FEBRUARY 25, 2006
Net Sales
Net sales consisted almost entirely of sales to retail customers, net of discounts and returns, but also
included delivery revenues and wholesale sales and royalties received from franchise stores and Sears Roebuck
de Mexico, S.A. de C.V. Sales by retail concept during fiscal years 2007, 2006 and 2005 were as follows (in
thousands):
2007 2006 2005
Stores ....................................... $1,590,854 $1,753,927 $1,807,441
Direct to consumer .............................. 18,943 15,345 10,408
Other
(1)
...................................... 13,419 7,429 7,494
Net sales ................................... $1,623,216 $1,776,701 $1,825,343
(1) Other sales consisted primarily of wholesale sales and royalties received from franchise stores and from Sears Roebuck de Mexico,
S.A. de C.V.
Net sales during fiscal 2007 were $1,623.2 million, a decrease of $153.5 million or 8.6%, from
$1,776.7 million for the prior fiscal year. The decrease in sales for the fiscal year was comprised of the
following components (in thousands):
2007
New stores opened during fiscal 2007 ...................................... $ 27,889
Stores opened during fiscal 2006 .......................................... 24,472
Comparable stores..................................................... (184,797)
Closed stores and other ................................................. (21,049)
Net decrease in sales ................................................... $(153,485)
Comparable store sales for fiscal 2007 declined 11.3%. The Company’s net sales from Canadian stores
were subject to fluctuation in currency conversion rates. These fluctuations had an immaterial impact on both
net sales and comparable store calculations in fiscal 2007 compared to fiscal 2006.
During fiscal 2007, the Company opened 34 and closed 64 stores in the United States and Canada,
bringing its Pier 1 and Pier 1 Kids store count to 1,196 at year-end, compared to 1,226 last year. The
Company continues to evaluate its real estate portfolio on a store-by-store and market-by-market basis and
will open or close stores as deemed appropriate. During fiscal 2008, the Company expects to open five new
Pier 1 stores and close approximately 60 stores, including 10 Pier 1 Kids stores. A summary reconciliation of
the Company’s stores open at the beginning of fiscal 2007, 2006 and 2005 to the number open at the end of
each period follows (openings and closings include relocated stores):
United States Canada Total
(2)
Open at February 28, 2004............................... 1,055 68 1,123
Openings .......................................... 101 13 114
Closings .......................................... (41) (1) (42)
Open at February 26, 2005............................... 1,115 80 1,195
Openings .......................................... 65 4 69
Closings .......................................... (37) (1) (38)
Open at February 25, 2006............................... 1,143 83 1,226
Openings .......................................... 32 2 34
Closings .......................................... (63) (1) (64)
Open at March 3, 2007
(1)
................................ 1,112 84 1,196
21