Pier 1 2009 Annual Report Download - page 14

MICHAEL A. CARTER, age 50, has served as Senior Vice President and General Counsel,
Secretary of the Company since December 2005. He served as Vice President—Legal Affairs of Pier 1
Imports, (U.S.), Inc. from April 1999 to December 2005. He served as Corporate Counsel of Pier 1
Imports (U.S.), Inc. from March 1990 until April 1999. He served as Assistant Secretary of the
Company from April 1991 until December 2005.
The officers of the Company are appointed by the Board of Directors, hold office until their
successors are elected and qualified and/or until their earlier death, resignation or removal. None of
the above executive officers has any family relationship with any other of such officers or with any
director of the Company. None of such officers was selected pursuant to any arrangement or
understanding between him and any other person.
Item 1A. Risk Factors.
The following information describes certain significant risks and uncertainties inherent in the
Company’s business that should be carefully considered, along with other information contained
elsewhere in this report and in other filings, when making an investment decision with respect to the
Company. If one or more of these risks actually occurs, the impact on the Company’s operations,
financial position, or liquidity could be material and the business could be harmed substantially.
Additional risks and uncertainties not presently known to the Company or that it currently believes are
immaterial may also adversely affect the Company’s business, financial condition, future results of
operations and cash flow. In addition to the risks discussed below, the Company is also subject to
certain market risks as described in Item 7A to this report.
Strategic Risks and Strategy Execution Risks
The deterioration of the United States economy and its impact on consumer confidence and spending
could continue for an unspecified period of time, and could further adversely impact the Company’s results of
operations.
The United States economy remains in a deep recession and is suffering from a near collapse of
the credit and financial markets. The market value of domestic and foreign companies has declined
significantly since August 2008, which has adversely affected the savings and investments of United
States consumers. Consumer confidence and spending have deteriorated significantly as a result of this
current market turmoil. The difficult economic situation faced in the United States and other countries
may not end in the near future and consumer confidence and spending could remain depressed and
possibly deteriorate even further. During times of economic uncertainty, consumers tend to sacrifice
purchases of discretionary items, including the Company’s merchandise, which could continue to
adversely impact the Company’s financial results and turnaround plan.
The success of the business is dependent on factors affecting consumer spending that are not controllable
by the Company.
Consumer spending, including spending for the home and home-related furnishings, are further
dependent upon factors besides general economic conditions and include, but are not limited to, levels
of employment, disposable consumer income, prevailing interest rates, consumer debt, costs of fuel,
inflation, recession and fears of recession, war and fears of war, inclement weather, tax rates and rate
increases, consumer confidence in future economic conditions and political conditions, and consumer
perceptions of personal well-being and security. Unfavorable changes in factors affecting discretionary
spending could reduce demand for the Company’s products and therefore lower sales and negatively
impact the business and its operating results.
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