Pier 1 2010 Annual Report Download - page 31

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FISCAL YEARS ENDED FEBRUARY 28, 2009 AND MARCH 1, 2008
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 2009, 2008
and 2007 were as follows (in thousands):
2009 2008 2007
Stores $ 1,308,331 $ 1,486,147 $ 1,590,854
Direct to consumer - 8,366 18,943
Other (1) 12,346 17,319 13,419
Net sales $ 1,320,677 $ 1,511,832 $ 1,623,216
(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 2009 were $1,320.7 million, a decrease of $191.1 million or 12.6%, from $1,511.8
million for the prior fiscal year. The decrease in sales for the fiscal year was comprised of the following
components (in thousands):
2009
Stores opened during fiscal 2008 $ 1,231
Comparable stores (129,901)
Closed stores and other (1) (62,485)
Net decrease in sales $ (191,155)
(1) Includes a decrease in sales related to the absence of direct to consumer
sales and sales to third parties.
The total sales decline for fiscal 2009 was attributable to macro-economic conditions, which caused a
slowdown in consumer spending, a net decrease of 25 stores for the fiscal year, and a comparable store sales
decline of 9.2%. The Company’s net sales from Canadian stores were subject to fluctuation in currency
conversion rates. These fluctuations had an unfavorable impact of approximately 50 basis points on both net
sales and comparable store calculations in fiscal 2009 compared to fiscal 2008.
During fiscal 2009, the Company opened one new store and closed 26 store locations. As of February 28,
2009, the Company operated 1,092 stores in the United States and Canada.
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