Pier 1 2009 Annual Report Download - page 12

Pier 1 Imports merchandise largely consists of items that feature a significant degree of
handcraftsmanship and are mostly imported directly from foreign suppliers. For the most part, the
imported merchandise is handcrafted in cottage industries and small factories. Pier 1 Imports has
enjoyed long-standing relationships with many vendors and agents and is not dependent on any
particular supplier. The Company believes alternative sources of merchandise could be procured over a
relatively short period of time, if necessary. In selecting the source of merchandise, Pier 1 Imports
considers quality, dependability of delivery, and cost. During fiscal 2009, Pier 1 Imports sold
merchandise imported from over 50 different countries with over 40% of its sales derived from
merchandise produced in China. The remainder of its merchandise is sourced from India, Indonesia
and other countries around the world.
Imported merchandise and a portion of domestic purchases are delivered to the Company’s
distribution centers, unpacked and made available for shipment to the various stores in each
distribution center’s region.
The Company, through one of its wholly owned subsidiaries, owns a number of federally registered
trademarks and service marks under which Pier 1 Imports stores do business. Additionally, certain
subsidiaries of the Company have registered and have applications pending for the registration of
certain other Pier 1 Imports trademarks and service marks in the United States and in numerous
foreign countries. The Company believes that its marks have significant value and are important in its
marketing efforts. The Company maintains a policy of pursuing registration of its marks and opposing
any infringement of its marks.
The Company operates in the highly competitive specialty retail business and competes primarily
with specialty sections of large department stores, furniture and decorative home furnishings retailers,
small specialty stores, and mass merchandising discounters.
The Company allows customers to return merchandise within a reasonable time after the date of
purchase without limitation as to reason. Most returns occur within 30 days of the date of purchase.
The Company monitors the level of returns and maintains a reserve for future returns based on
historical experience and other known factors.
On February 28, 2009, the Company employed approximately 16,700 associates in the United
States and Canada, of which approximately 3,500 were full-time employees and 13,200 were part-time
employees.
(d) Financial Information about Geographic Areas.
Information required by this Item is found in Note 1 of the Notes to the Consolidated Financial
Statements.
(e) Available Information.
The Company makes available free of charge through its Internet web site address (www.pier1.com)
its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and
amendments to those reports filed with the Securities and Exchange Commission (the ‘‘SEC’’) pursuant
to Section 13(a) of the Securities Exchange Act of 1934 as soon as reasonably practicable after it
electronically files such material with, or furnishes such material to, the SEC.
Certain statements contained in Item 1, Item 1A, Item 7, Item 7A, Item 8 and elsewhere in this
report may constitute ‘‘forward-looking statements’’ within the meaning of Section 21E of the Securities
Exchange Act of 1934. The Company may also make forward-looking statements in other reports filed
with the SEC and in material delivered to the Company’s shareholders. Forward-looking statements
provide current expectations of future events based on certain assumptions. These statements
encompass information that does not directly relate to any historical or current fact and often may be
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