Pier 1 2010 Annual Report Download - page 27

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Stores included in the comparable store sales calculation are those stores that have been opened since the
beginning of the preceding fiscal year. Remodeled or relocated stores are included if they meet specific criteria.
Those criteria include the following: the new store is within a specified distance serving the same market, no
significant change in store size, and no significant overlap or gap between the closing and reopening. Such stores
are included in the comparable store sales calculation in the first full month after the re-opening. If a relocated or
remodeled store does not meet the above criteria, it is excluded from the calculation until it meets the Company’s
established definition of a comparable store.
FISCAL YEARS ENDED FEBRUARY 27, 2010 AND FEBRUARY 28, 2009
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. Sales by retail concept during fiscal years 2010,
2009 and 2008 were as follows (in thousands):
2010 2009 2008
Stores $ 1,279,742 $ 1,308,331 $ 1,486,147
Direct to consumer - - 8,366
Other (1) 11,110 12,346 17,319
Net sales $ 1,290,852 $ 1,320,677 $ 1,511,832
(1) Other sales consisted primarily of wholesale sales and royalties received from franchise stores,
Grupo Sanborns, S.A. de C.V., other third parties and gift card breakage.
Net sales during fiscal 2010 were $1,290.9 million, a decrease of $29.8 million or 2.3%, from $1,320.7
million for the prior fiscal year. The decrease in sales for the fiscal year was comprised of the following
components (in thousands):
2010
Comparable stores 19,044
Closed stores and other (48,869)
Net decrease in sales $ (29,825)
The total sales decline for fiscal 2010 was primarily the result of a net decrease of 38 stores compared to
the same period in the prior year. As of February 27, 2010, the Company operated 1,054 stores in the United
States and Canada, compared to 1,092 stores at the end of fiscal 2009. The Company’s net sales from Canadian
stores were subject to fluctuation in currency conversion rates. However, these fluctuations had no net impact on
either the net sales or comparable store calculations in fiscal 2010 compared to fiscal 2009.
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