Pier 1 2011 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 26, 2011 AND FEBRUARY 27, 2010
Net Sales
Net sales consisted primarily 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 2011, 2010 and
2009 were as follows (in thousands):
2011 2010 2009
Stores $ 1,381,944 $ 1,279,742 $ 1,308,331
Other (1) 14,526 11,110 12,346
Net sales $ 1,396,470 $ 1,290,852 $ 1,320,677
(1) Other sales consisted primarily of wholesale sales and royalties received from Grupo Sanborns, S.A.
de C.V. and gift card breakage.
Net sales during fiscal 2011 were $1,396.5 million, an increase of $105.6 million or 8.2%, from $1,290.9
million for the prior fiscal year. The increase in sales for the fiscal year was comprised of the following
components (in thousands):
Net Sales
Net sales for fiscal 2010 $ 1,290,852
Incremental sales growth (decline) from:
New stores 2,969
Comparable stores 136,420
Closed stores and other (33,771)
Net sales for fiscal 2011 $ 1,396,470
The total sales growth for fiscal 2011 was primarily the result of an increase in traffic, conversion rate,
and average ticket compared to prior year. As of February 26, 2011, the Company operated 1,046 stores in the
United States and Canada, compared to 1,054 stores at the end of fiscal 2010. The Company’s net sales from
Canadian stores were subject to fluctuation in currency conversion rates. These fluctuations contributed to a 70
basis points increase in both the net sales and comparable store calculations in fiscal 2011 compared to fiscal
2010.
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