Pier 1 2014 Annual Report Download - page 27

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
FISCAL YEARS ENDED MARCH 2, 2013 AND FEBRUARY 25, 2012
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 years 2013 and 2012 were as follows (in thousands):
2013 2012
Stores $1,676,293 $1,518,200
Other (1) 28,592 15,411
Net sales $1,704,885 $1,533,611
(1) Other sales consisted primarily of direct-to-customer sales, wholesale sales and royalties received from Grupo Sanborns and gift card breakage.
Net sales during fiscal 2013 were $1.705 billion for the 53-week period, an increase of 11.2%, from $1.534 billion for fiscal
2012. The increase in sales for fiscal 2013 was comprised of the following components (in thousands):
Net Sales
Net sales for fiscal 2012 $1,533,611
Incremental sales growth (decline) from:
New stores opened during fiscal 2013 (1) 31,093
Stores opened during fiscal 2012 13,511
Comparable stores (2) 112,077
Comparable stores for the 53rd week of fiscal 2013 27,178
Other, including closed stores (12,585)
Net sales for fiscal 2013 $1,704,885
(1) Includes incremental sales of $12,544 from direct-to-customer sales.
(2) Includes orders placed online for store pick-up of $4,057, and excludes sales at comparable stores during the 53rd week of fiscal 2013.
The total sales growth for fiscal 2013 was primarily the result of an increase in store traffic and average ticket compared to fiscal
2012. Comparable store sales increased 7.5% for the year. As of March 2, 2013, the Company operated 1,062 stores in the
United States and Canada, compared to 1,052 stores at the end of fiscal 2012. The Company’s net sales from Canadian stores
were subject to fluctuation in currency conversion rates. These fluctuations contributed to a ten basis point decrease in the
comparable store calculation in fiscal 2013 compared to fiscal 2012. Sales on the Pier 1 credit card comprised 25.7% of U.S.
store sales compared to 21.2% in fiscal 2012.
A summary reconciliation of the Company’s stores open at the beginning of fiscal 2013, 2012 and 2011 to the number open at
the end of each period is as follows (openings and closings include relocated stores):
United States Canada Total
Open at February 27, 2010 973 81 1,054
Openings 3 — 3
Closings (9) (2) (11)
Open at February 26, 2011 967 79 1,046
Openings 13 2 15
Closings (9) — (9)
Open at February 25, 2012 971 81 1,052
Openings 22 — 22
Closings (11) (1) (12)
Open at March 2, 2013 (1) 982 80 1,062
(1) The Company supplies merchandise and licenses the Pier 1 Imports name to Grupo Sanborns, which sells Pier 1 Imports merchandise primarily in a “store within a store” format. At the end
of fiscal 2013, there were 49 of these locations in Mexico and one in El Salvador. These locations are excluded from the table above.
PIER 1 IMPORTS, INC. 2014 Form 10-K 23