Pier 1 Imports Inc. (NYSE: PIR) is a Fort Worth, Texas based retailer specializing in imported home furnishings and decor, particularly furniture, table-top items, decorative accessories and seasonal decor. The chain operates over 1,000 stores under the name Pier 1 Imports in the United States, Canada, Mexico and Puerto Rico. The company also had a children's furniture and accessories retail concept in the United States called Pier 1 Kids which was disbanded in September 2007. It was a member of the S&P MidCap 400 list through the end of 2006, when it was bumped off the list. Pier 1 Imports also owned a chain of home-decor retailers (40 locations as of February 2006) in the United Kingdom called "The Pier" until it sold to Palli Limited, a subsidiary of Lagerinn ehf. in March 2006. This chain went into Administration in December 2008[1] and was finally closed in January 2009.
The company was founded in 1962 in San Mateo, California.
Former spokespeople for the company, seen largely in broadcast commercials, include Cheers alumna Kirstie Alley and Thom Filicia of Queer Eye for the Straight Guy.
Pier 1 Imports, Inc. is a leading specialty retailer, operating more than 800 casual home furnishing stores in 48 U.S. states, two Canadian provinces, and in Mexico, Puerto Rico, the United Kingdom, and Japan. The vast majority operate under the Pier 1 Imports name, while the U.K. units are known as 'The Pier' and the operations in Mexico and Puerto Rico consist of 'store within a store' outlets in Sears stores. The U.S. and Canadian stores are typically freestanding units of about 7,500 square feet located near major shopping centers or malls. They offer a wide selection of merchandise, including more than 5,000 items imported from more than 60 countries worldwide (the bulk coming from Asia), with the principal categories consisting of furniture, decorative accessories, dining and kitchen goods, bath and bedding accessories, and seasonal items. Sales through the company's proprietary credit card account for more than 28 percent of overall sales.
Pier 1 Imports, Inc., incorporated in 1986, conducts business as one operating segment consisting of the retail sale of decorative home furnishings, gifts and related items. The specialty retail operations of the Company consist of retail stores operating under the name Pier 1 Imports, which sell a variety of furniture, decorative home furnishings, dining and kitchen goods, bath and bedding accessories, candles, gifts and other specialty items for the home. On February 27, 2010, the Company operated 973 Pier 1 Imports stores in the United States and 81 Pier 1 Imports stores in Canada. During the fiscal year ended February 27, 2010 (fiscal 2010), the Company supplied merchandise and licensed the Pier 1 Imports name to Grupo Sanborns and Sears Puerto Rico, which sold Pier 1 Imports merchandise in a store within a store format in 34 Sears Mexico stores and one Dorian’s store.
In fiscal 2010, the Company closed 38 Pier 1 Imports stores. As of the end of fiscal 2010, the Company operates regional distribution center facilities in or near Baltimore, Maryland; Columbus, Ohio; Fort Worth, Texas; Ontario, California; Savannah, Georgia; and Tacoma, Washington. The Company ceased operations at its Company-owned 514,000 square foot distribution center near Chicago, Illinois, in fiscal 2010. As of October 19, 2009, the Company terminated its agreement with Sears Roebuck de Puerto Rico, Inc. (Sears Puerto Rico) and ceased operations in Puerto Rico. The stores consist of freestanding units located near shopping centers or malls and in-line positions in major shopping centers. Pier 1 Imports operates in all United States metropolitan areas and many of the primary smaller markets.
The Company’s categories of merchandise include decorative accessories and furniture. Decorative accessories merchandise group constitutes the category of merchandise in Pier 1 Imports’ sales mix and contributed approximately 60% to Pier 1 Imports’ total United States and Canadian retail sales in fiscal 2010. These items are imported primarily from Asian and European countries, as well as some domestic sources. This category includes decorative wood accents, lamps, vases, dried and artificial flowers, baskets, ceramics, dinnerware, bath and fragrance products, candles, bedding, seasonal and gift items.
Furniture merchandise group consists of furniture and furniture cushions to be used in living, dining, office, kitchen and bedroom areas, sunrooms and on patios. Also included in this group are wall decorations and mirrors. This product group constituted approximately 40% of Pier 1 Imports’ total United States and Canadian retail sales in fiscal year 2010. These goods are imported from a variety of countries, such as Vietnam, Malaysia, Brazil, Thailand, China, the Philippines, India and Indonesia. This merchandise is made of metal or handcrafted natural materials, including rattan, pine, beech, rubberwood and selected hardwoods with either natural, stained, painted or upholstered finishes.
International expansion continued in the late 1990s, although the company's Mexican operations suffered from the devaluation of the peso. During fiscal 1996 Pier 1 entered into an agreement with Sears Roebuck de Puerto Rico, Inc. to develop Pier 1 'stores within a store' in Sears outlets located in Puerto Rico, an arrangement similar to the one in Mexico. By early 1999 seven Sears Puerto Rico stores were offering Pier 1 merchandise. In 1997 Pier 1 entered into a joint venture with Akatsuki Printing Co., Ltd. and Skylark Group to open stores in Japan. By early 1999 there were 18 Pier 1 stores in that country. Also during this time, the company purchased an Omaha, Nebraska-based national bank, which was soon renamed Pier 1 National Bank and which held the credit card accounts for the company's proprietary card. The Pier 1 credit card was responsible for 28 percent of sales by the end of the decade.
Pier 1's earnings decline appeared to be only temporary, as the company rebounded by fiscal 1998 to post profits of $78 million on record sales of $1.08 billion. This also marked the first time sales had exceeded the $1 billion mark. In June 1998 Girouard was appointed CEO, taking over from the retiring Johnson. Girouard added the chairmanship as well in February of the following year. Although sales grew again in 1999, reaching $1.14 billion, this represented an increase of only 5.6 percent over the previous year, compared to the 13 to 17 percent increases of the previous three years.
With markets for new Pier 1 stores in the United States at a minimum, and with competition increasing from fast-growing discounters such as Cost Plus and such upscale housewares chains as Pottery Barn and Crate and Barrel, Pier 1 Imports appeared to be hitting a plateau, prompting Girouard to investigate alternative avenues of growth. He first considered opening a second chain which would offer discount merchandising, before deciding that the upscale markets had more potential. In mid-1999 the company entered negotiations to purchase the privately held Z Gallerie, a retail chain offering high-end home furnishings. The deal, however, fell apart in August, leading to the immediate departure of another CFO, Stephen F. Mangum, who had championed the acquisition. In the aftermath, the company's stock plunged 33 percent in one day. Girouard subsequently abandoned plans to open or acquire a second chain, deciding instead to concentrate on revitalizing the Pier 1 concept by cutting prices, opening stores in smaller markets, and experimenting with larger formats. A 1,000-item online catalog was also being developed.
Principal Subsidiaries: Pier 1 Assets, Inc.; Pier 1 Licensing, Inc.; Pier 1 Imports (U.S.), Inc.; Pier 1 Funding, Inc.; Pier Lease, Inc.; Pier-SNG, Inc.; PIR Trading, Inc.; Pier International Limited (Hong Kong); Pier Alliance Ltd. (Bermuda); The Pier Retail Group Limited (U.K.); The Pier (Retail) Limited (U.K.); Pier Direct Limited (U.K.); Pier-FTW, Inc.; Pacific Industrial Properties, Inc.; Pier Group, Inc.; Pier 1 Holdings, Inc.; Pier 1 Services Company; Pier 1 National Bank.
Principal Competitors: The Bombay Company, Inc.; Cost Plus, Inc.; Euromarket Designs Inc.; Garden Ridge Corporation; HomePlace of America Inc.; IKEA International A/S; Lechters, Inc.; Michaels Stores, Inc.; MJDesigns, Inc.; Spiegel, Inc.; Williams-Sonoma, Inc.
OVERALL
Beta: 4.62
Market Cap (Mil.): $1,374.78
Shares Outstanding (Mil.): 118.21
Annual Dividend: --
Yield (%): --
FINANCIALS
PIR Industry Sector
P/E (TTM): 13.72 16.27 19.29
EPS (TTM): 3.65 -- --
ROI: 21.93 15.81 1.61
ROE: 27.97 17.77 2.45
Statistics:
Public Company
Founded: 1962 as Cost Plus
Employees: 12,600
Sales: $1.14 billion (1999)
Stock Exchanges: New York
Ticker Symbol: PIR
NAIC: 442110 Furniture Stores; 442299 All Other Home Furnishings Stores; 453220 Gift, Novelty, and Souvenir Stores
Key Dates:
1962: Charles Tandy and Luther Henderson open their first Cost Plus store.
1966: A group of investors led by Henderson buys Tandy's Cost Plus operation and changes the name to Pier 1 Imports.
1970: Company goes public.
1971: International expansion begins with the opening of stores in Australia and England.
1979: Chain includes approximately 300 stores worldwide.
1985: Intermark purchases a majority interest in Pier 1; new efforts are made to win back customer base and reposition the company.
1989: Number of stores exceeds 550.
1991: Intermark sells its stake in Pier 1, returning Pier 1 to true public ownership.
1993: Pier 1 'stores within a store' are launched in Mexico; partnership is forged to operate 'The Pier' chain in England.
1997: Company enters into a joint venture to open stores in Japan.
1999: For the fiscal year ending in February, net sales exceed $1 billion for the first time.
Name Age Since Current Position
Ferrari, Michael 70 2010 Non-Executive Chairman of the Board
Smith, Alexander 58 2007 President, Chief Executive Officer, Director
Turner, Charles 54 2002 Chief Financial Officer, Executive Vice President
Humenesky, Gregory 59 2005 Executive Vice President - Human Resources
Leite, Sharon 48 2007 Executive Vice President - Store Operations
David, Catherine 47 2009 Executive Vice President - Merchandising
Carter, Michael 52 2005 Senior Vice President, General Counsel, Secretary
Kinnison, Donald 53 2009 Senior Vice President - Marketing and Visual Merchandising
Benkel, Michael 42 2009 Senior Vice President - Planning and Allocations
Coffey, Laura 44 2011 Senior Vice President - Business Development and Strategic Planning
Burgoyne, John 68 1999 Director
London, Terry 61 2003 Director
Smith, Cece 65 2007 Director
Dodds, Hamish 2011 Director
Hoffman, Brendan 2011 Director
Babrowski, Claire 54 2011 Director
Address:
301 Commerce Street
Suite 600
Fort Worth, Texas 76102
U.S.A.
The company was founded in 1962 in San Mateo, California.
Former spokespeople for the company, seen largely in broadcast commercials, include Cheers alumna Kirstie Alley and Thom Filicia of Queer Eye for the Straight Guy.
Pier 1 Imports, Inc. is a leading specialty retailer, operating more than 800 casual home furnishing stores in 48 U.S. states, two Canadian provinces, and in Mexico, Puerto Rico, the United Kingdom, and Japan. The vast majority operate under the Pier 1 Imports name, while the U.K. units are known as 'The Pier' and the operations in Mexico and Puerto Rico consist of 'store within a store' outlets in Sears stores. The U.S. and Canadian stores are typically freestanding units of about 7,500 square feet located near major shopping centers or malls. They offer a wide selection of merchandise, including more than 5,000 items imported from more than 60 countries worldwide (the bulk coming from Asia), with the principal categories consisting of furniture, decorative accessories, dining and kitchen goods, bath and bedding accessories, and seasonal items. Sales through the company's proprietary credit card account for more than 28 percent of overall sales.
Pier 1 Imports, Inc., incorporated in 1986, conducts business as one operating segment consisting of the retail sale of decorative home furnishings, gifts and related items. The specialty retail operations of the Company consist of retail stores operating under the name Pier 1 Imports, which sell a variety of furniture, decorative home furnishings, dining and kitchen goods, bath and bedding accessories, candles, gifts and other specialty items for the home. On February 27, 2010, the Company operated 973 Pier 1 Imports stores in the United States and 81 Pier 1 Imports stores in Canada. During the fiscal year ended February 27, 2010 (fiscal 2010), the Company supplied merchandise and licensed the Pier 1 Imports name to Grupo Sanborns and Sears Puerto Rico, which sold Pier 1 Imports merchandise in a store within a store format in 34 Sears Mexico stores and one Dorian’s store.
In fiscal 2010, the Company closed 38 Pier 1 Imports stores. As of the end of fiscal 2010, the Company operates regional distribution center facilities in or near Baltimore, Maryland; Columbus, Ohio; Fort Worth, Texas; Ontario, California; Savannah, Georgia; and Tacoma, Washington. The Company ceased operations at its Company-owned 514,000 square foot distribution center near Chicago, Illinois, in fiscal 2010. As of October 19, 2009, the Company terminated its agreement with Sears Roebuck de Puerto Rico, Inc. (Sears Puerto Rico) and ceased operations in Puerto Rico. The stores consist of freestanding units located near shopping centers or malls and in-line positions in major shopping centers. Pier 1 Imports operates in all United States metropolitan areas and many of the primary smaller markets.
The Company’s categories of merchandise include decorative accessories and furniture. Decorative accessories merchandise group constitutes the category of merchandise in Pier 1 Imports’ sales mix and contributed approximately 60% to Pier 1 Imports’ total United States and Canadian retail sales in fiscal 2010. These items are imported primarily from Asian and European countries, as well as some domestic sources. This category includes decorative wood accents, lamps, vases, dried and artificial flowers, baskets, ceramics, dinnerware, bath and fragrance products, candles, bedding, seasonal and gift items.
Furniture merchandise group consists of furniture and furniture cushions to be used in living, dining, office, kitchen and bedroom areas, sunrooms and on patios. Also included in this group are wall decorations and mirrors. This product group constituted approximately 40% of Pier 1 Imports’ total United States and Canadian retail sales in fiscal year 2010. These goods are imported from a variety of countries, such as Vietnam, Malaysia, Brazil, Thailand, China, the Philippines, India and Indonesia. This merchandise is made of metal or handcrafted natural materials, including rattan, pine, beech, rubberwood and selected hardwoods with either natural, stained, painted or upholstered finishes.
International expansion continued in the late 1990s, although the company's Mexican operations suffered from the devaluation of the peso. During fiscal 1996 Pier 1 entered into an agreement with Sears Roebuck de Puerto Rico, Inc. to develop Pier 1 'stores within a store' in Sears outlets located in Puerto Rico, an arrangement similar to the one in Mexico. By early 1999 seven Sears Puerto Rico stores were offering Pier 1 merchandise. In 1997 Pier 1 entered into a joint venture with Akatsuki Printing Co., Ltd. and Skylark Group to open stores in Japan. By early 1999 there were 18 Pier 1 stores in that country. Also during this time, the company purchased an Omaha, Nebraska-based national bank, which was soon renamed Pier 1 National Bank and which held the credit card accounts for the company's proprietary card. The Pier 1 credit card was responsible for 28 percent of sales by the end of the decade.
Pier 1's earnings decline appeared to be only temporary, as the company rebounded by fiscal 1998 to post profits of $78 million on record sales of $1.08 billion. This also marked the first time sales had exceeded the $1 billion mark. In June 1998 Girouard was appointed CEO, taking over from the retiring Johnson. Girouard added the chairmanship as well in February of the following year. Although sales grew again in 1999, reaching $1.14 billion, this represented an increase of only 5.6 percent over the previous year, compared to the 13 to 17 percent increases of the previous three years.
With markets for new Pier 1 stores in the United States at a minimum, and with competition increasing from fast-growing discounters such as Cost Plus and such upscale housewares chains as Pottery Barn and Crate and Barrel, Pier 1 Imports appeared to be hitting a plateau, prompting Girouard to investigate alternative avenues of growth. He first considered opening a second chain which would offer discount merchandising, before deciding that the upscale markets had more potential. In mid-1999 the company entered negotiations to purchase the privately held Z Gallerie, a retail chain offering high-end home furnishings. The deal, however, fell apart in August, leading to the immediate departure of another CFO, Stephen F. Mangum, who had championed the acquisition. In the aftermath, the company's stock plunged 33 percent in one day. Girouard subsequently abandoned plans to open or acquire a second chain, deciding instead to concentrate on revitalizing the Pier 1 concept by cutting prices, opening stores in smaller markets, and experimenting with larger formats. A 1,000-item online catalog was also being developed.
Principal Subsidiaries: Pier 1 Assets, Inc.; Pier 1 Licensing, Inc.; Pier 1 Imports (U.S.), Inc.; Pier 1 Funding, Inc.; Pier Lease, Inc.; Pier-SNG, Inc.; PIR Trading, Inc.; Pier International Limited (Hong Kong); Pier Alliance Ltd. (Bermuda); The Pier Retail Group Limited (U.K.); The Pier (Retail) Limited (U.K.); Pier Direct Limited (U.K.); Pier-FTW, Inc.; Pacific Industrial Properties, Inc.; Pier Group, Inc.; Pier 1 Holdings, Inc.; Pier 1 Services Company; Pier 1 National Bank.
Principal Competitors: The Bombay Company, Inc.; Cost Plus, Inc.; Euromarket Designs Inc.; Garden Ridge Corporation; HomePlace of America Inc.; IKEA International A/S; Lechters, Inc.; Michaels Stores, Inc.; MJDesigns, Inc.; Spiegel, Inc.; Williams-Sonoma, Inc.
OVERALL
Beta: 4.62
Market Cap (Mil.): $1,374.78
Shares Outstanding (Mil.): 118.21
Annual Dividend: --
Yield (%): --
FINANCIALS
PIR Industry Sector
P/E (TTM): 13.72 16.27 19.29
EPS (TTM): 3.65 -- --
ROI: 21.93 15.81 1.61
ROE: 27.97 17.77 2.45
Statistics:
Public Company
Founded: 1962 as Cost Plus
Employees: 12,600
Sales: $1.14 billion (1999)
Stock Exchanges: New York
Ticker Symbol: PIR
NAIC: 442110 Furniture Stores; 442299 All Other Home Furnishings Stores; 453220 Gift, Novelty, and Souvenir Stores
Key Dates:
1962: Charles Tandy and Luther Henderson open their first Cost Plus store.
1966: A group of investors led by Henderson buys Tandy's Cost Plus operation and changes the name to Pier 1 Imports.
1970: Company goes public.
1971: International expansion begins with the opening of stores in Australia and England.
1979: Chain includes approximately 300 stores worldwide.
1985: Intermark purchases a majority interest in Pier 1; new efforts are made to win back customer base and reposition the company.
1989: Number of stores exceeds 550.
1991: Intermark sells its stake in Pier 1, returning Pier 1 to true public ownership.
1993: Pier 1 'stores within a store' are launched in Mexico; partnership is forged to operate 'The Pier' chain in England.
1997: Company enters into a joint venture to open stores in Japan.
1999: For the fiscal year ending in February, net sales exceed $1 billion for the first time.
Name Age Since Current Position
Ferrari, Michael 70 2010 Non-Executive Chairman of the Board
Smith, Alexander 58 2007 President, Chief Executive Officer, Director
Turner, Charles 54 2002 Chief Financial Officer, Executive Vice President
Humenesky, Gregory 59 2005 Executive Vice President - Human Resources
Leite, Sharon 48 2007 Executive Vice President - Store Operations
David, Catherine 47 2009 Executive Vice President - Merchandising
Carter, Michael 52 2005 Senior Vice President, General Counsel, Secretary
Kinnison, Donald 53 2009 Senior Vice President - Marketing and Visual Merchandising
Benkel, Michael 42 2009 Senior Vice President - Planning and Allocations
Coffey, Laura 44 2011 Senior Vice President - Business Development and Strategic Planning
Burgoyne, John 68 1999 Director
London, Terry 61 2003 Director
Smith, Cece 65 2007 Director
Dodds, Hamish 2011 Director
Hoffman, Brendan 2011 Director
Babrowski, Claire 54 2011 Director
Address:
301 Commerce Street
Suite 600
Fort Worth, Texas 76102
U.S.A.