Pier 1 2012 Annual Report Download - page 27
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Overview of Business
The Company’s key financial and operational indicators used by management to evaluate the
performance of the business include the following (trends for these indicators are explained in the comparative
discussions of this section):
Key Performance Indicators 2012 2011 2010
Total sales growth (decline) 9.8% 8.2% (2.3%)
Comparable stores sales growth 9.5% 10.9% 1.5%
Sales per average retail square foot $ 184 $ 168 $ 152
Merchandise margins as a % of sales 59.8% 58.6% 54.8%
Gross profit as a % of sales 42.5% 39.8% 34.1%
Selling, general and administrative expenses as a % of sales 31.0% 30.9% 32.6%
Operating income (loss) as a % of sales 10.1% 7.4% (0.3%)
Net income as a % of sales 11.0% 7.2% 6.7%
Inventory per retail square foot $ 39 $ 38 $ 38
Total retail square footage (in thousands) 8,271 8,232 8,290
Total retail square footage increase (decline) 0.5% (0.7%) (3.4%)
Stores included in the comparable store sales calculation are those stores that have been open 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 25, 2012 AND FEBRUARY 26, 2011
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 2012 and 2011
were as follows (in thousands):
2012 2011
Stores $ 1,518,200 $ 1,381,944
Other (1) 15,411 14,526
Net sales $ 1,533,611 $ 1,396,470
(1) Other sales consisted primarily of wholesale sales and royalties received from subsidiaries of Grupo Sanborns, S.A. de C.V.
and gift card breakage.
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