Pier 1 2011 Annual Report Download - page 11

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 2011, Pier 1 Imports sold merchandise imported from many different countries with approximately
56% of its sales derived from merchandise produced in China. The remainder of its merchandise is sourced from
India, Vietnam, Indonesia and other countries around the world.
Imported merchandise and the majority of domestic purchases are delivered to the Company’s
distribution centers, where merchandise is received, allocated and shipped to the various stores in each
distribution center’s region.
The Company owns a number of federally registered trademarks and service marks under which Pier 1
Imports stores conduct business. Additionally, the Company has registered and has applications pending for the
registration of certain other Pier 1 Imports trademarks and service marks in the United States, Canada and other
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 home 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 26, 2011, the Company employed approximately 17,000 associates in the United States and
Canada, of which approximately 3,400 were full-time employees and 13,600 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 website 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 27A of the Securities Act of 1933 and
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
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