Pier 1 2011 Annual Report Download - page 28

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A summary reconciliation of the Company’s stores open at the beginning of fiscal 2011, 2010 and 2009
to the number open at the end of each period follows (openings and closings include relocated stores):
United States Canada Total
Open at March 1, 2008 1,034 83 1,117
Openings 1 - 1
Closings (24) (2) (26)
Open at February 28, 2009 1,011 81 1,092
Openings - - -
Closings (38) - (38)
Open at February 27, 2010 (1) 973 81 1,054
Openings 3 - 3
Closings (9) (2) (11)
Open at February 26, 2011 (2) 967 79 1,046
(1) During the third quarter of fiscal 2010, the company ended its relationship with Sears Roebuck
de Puerto Rico, Inc. and closed all seven “store within a store” locations in Puerto Rico. These
locations are excluded from the table above.
(2) The Company supplies merchandise and licenses the Pier 1 Imports name to Grupo Sanborns,
S.A. de C.V. which sells Pier 1 Imports merchandise primarily in a “store within a store” format.
At the end of fiscal 2011, there were 38 of these locations in Mexico and one in El Salvador.
These locations are excluded from the table above.
Gross Profit
Gross profit, which is calculated by deducting store occupancy costs from merchandise margin dollars,
was 39.8% expressed as a percentage of sales in fiscal 2011, compared to 34.1% a year ago. Merchandise
margins were 58.6% as a percentage of sales, an increase of 380 basis points over 54.8% in fiscal 2010.
Improvements in merchandise margin over last year were primarily the result of significantly lower markdowns
resulting from strong input margins and well-managed inventory levels throughout the year.
Store occupancy costs during fiscal 2011 were $262.4 million or 18.8% of sales, a decrease of $4.7
million and 190 basis points from store occupancy costs of $267.1 million, or 20.7% of sales during fiscal 2010.
The decrease was primarily the result of favorable rental negotiations on a large number of stores in the prior
year and fewer open stores, coupled with decreases in property taxes and property insurance, partially offset by
an increase in maintenance and utility costs.
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