Pier 1 Imports 10-Q 9 Oct 19 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Aug. 31, 2019	Oct. 04, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Trading Symbol	PIR
Entity Registrant Name	PIER 1 IMPORTS INC/DE
Entity Central Index Key	0000278130
Current Fiscal Year End Date	--02-29
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		4,276,081
Entity Shell Company	false
Entity File Number	001-07832
Entity Tax Identification Number	75-1729843
Entity Address, Address Line One	100 Pier 1 Place
Entity Address, City or Town	Fort Worth
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76102
City Area Code	817
Local Phone Number	252-8000
Title of 12(b) Security	Common Stock, par value $0.001 per share
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Sep. 01, 2018	Aug. 31, 2019	Sep. 01, 2018
Income Statement [Abstract]
Net sales	$ 304,590	$ 355,336	$ 618,914	$ 727,200
Cost of sales	253,752	261,830	489,256	513,555
Gross profit	50,838	93,506	129,658	213,645
Selling, general and administrative expenses	131,872	143,149	274,854	281,729
Depreciation	12,021	12,823	24,424	25,723
Operating loss	(93,055)	(62,466)	(169,620)	(93,807)
Nonoperating (income) and expenses:
Interest, investment income and other	(227)	(846)	(358)	(1,163)
Interest expense	5,150	3,594	10,297	7,144
Nonoperating (income) and expenses	4,923	2,748	9,939	5,981
Loss before income taxes	(97,978)	(65,214)	(179,559)	(99,788)
Income tax provision (benefit)	2,573	(14,126)	2,705	(20,197)
Net loss	$ (100,551)	$ (51,088)	$ (182,264)	$ (79,591)
Loss per share:
Basic	$ (24.29)	$ (12.68)	$ (44.28)	$ (19.80)
Diluted	$ (24.29)	$ (12.68)	$ (44.28)	$ (19.80)
Average shares outstanding during period:
Basic	4,139	4,028	4,116	4,019
Diluted	4,139	4,028	4,116	4,019

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Sep. 01, 2018	Aug. 31, 2019	Sep. 01, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (100,551)	$ (51,088)	$ (182,264)	$ (79,591)
Other comprehensive income (loss)
Foreign currency translation adjustments	630	(32)	79	(261)
Pension adjustments	2	6	3	338
Other comprehensive income (loss)	632	(26)	82	77
Comprehensive loss, net of tax	$ (99,919)	$ (51,114)	$ (182,182)	$ (79,514)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2019	Mar. 02, 2019	Sep. 01, 2018
Current assets:
Cash and cash equivalents, including temporary investments of $2,956, $49,532 and $89,208, respectively	$ 10,007	$ 54,878	$ 116,769
Accounts receivable, net	25,609	21,189	24,183
Inventories	328,642	347,584	386,691
Prepaid expenses and other current assets	50,499	49,876	51,797
Total current assets	414,757	473,527	579,440
Properties and equipment, net of accumulated depreciation of $580,086, $556,426 and $578,476, respectively	121,129	149,356	168,089
Operating lease right-of-use assets	625,171
Other noncurrent assets	29,342	33,407	57,460
Assets, Total	1,190,399	656,290	804,989
Current liabilities:
Accounts payable	146,442	121,969	181,486
Gift cards and other deferred revenue	37,424	37,655	43,388
Borrowings under revolving line of credit	55,000
Accrued income taxes payable		302
Current portion of long-term debt	2,438	2,000	2,000
Current portion of operating lease liabilities	150,184
Other accrued liabilities	98,475	107,539	117,755
Total current liabilities	489,963	269,465	344,629
Long-term debt	258,900	245,624	197,310
Long-term operating lease liabilities	513,641
Other noncurrent liabilities	17,571	51,672	55,882
Commitments and contingencies
Shareholders' equity (deficit):
Common stock, $0.001 par, 25,000,000 shares authorized, 6,262,000 issued	6	6	6
Paid-in capital	141,943	138,469	137,510
Retained earnings	353,698	534,419	653,661
Cumulative other comprehensive loss	(7,779)	(7,861)	(7,400)
Less -- 1,990,000, 1,981,000 and 1,984,000 common shares in treasury, at cost, respectively	(577,544)	(575,504)	(576,609)
Total shareholders' equity (deficit)	(89,676)	89,529	207,168
Liabilities and Equity, Total	$ 1,190,399	$ 656,290	$ 804,989

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Aug. 31, 2019	Mar. 02, 2019	Sep. 01, 2018
Statement Of Financial Position [Abstract]
Cash and cash equivalents, temporary investments	$ 2,956	$ 49,532	$ 89,208
Properties and equipment, accumulated depreciation	$ 580,086	$ 556,426	$ 578,476
Common stock, par value	$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized	25,000,000	25,000,000	25,000,000
Common stock, shares issued	6,262,000	6,262,000	6,262,000
Treasury stock, shares	1,990,000	1,981,000	1,984,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2019	Sep. 01, 2018
Cash flows from operating activities:
Net loss	$ (182,264)	$ (79,591)
Adjustments to reconcile to net cash provided by (used in) operating activities:
Depreciation	28,130	29,761
Non-cash lease expense	565
Stock-based compensation expense	918	1,380
Deferred compensation, net	280	1,477
Deferred income taxes	2,337	(21,419)
Other	6,969	1,665
Changes in cash from:
Inventories	18,916	(39,343)
Prepaid expenses and other assets	(3,471)	(2,291)
Accounts payable and other liabilities	18,802	115,327
Accrued income taxes payable, net of payments	(422)	(2,461)
Net cash provided by (used in) operating activities	(109,240)	4,505
Cash flows from investing activities:
Capital expenditures	(6,339)	(25,643)
Proceeds from disposition of properties	509	1,678
Proceeds from sale of restricted investments	2,226	2,411
Purchase of restricted investments	(749)	(1,121)
Net cash used in investing activities	(4,353)	(22,675)
Cash flows from financing activities:
Stock purchase plan and other, net	516	712
Repayments of long-term debt	(1,000)	(1,000)
Borrowings under revolving line of credit	118,000
Repayments of borrowings under revolving line of credit	(63,000)
Borrowings under company owned life insurance	14,244
Net cash provided by (used in) financing activities	68,760	(288)
Effect of exchange rate changes on cash	(38)	(152)
Change in cash and cash equivalents	(44,871)	(18,610)
Cash and cash equivalents at beginning of period	54,878	135,379
Cash and cash equivalents at end of period	$ 10,007	$ 116,769

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock Outstanding	Common Stock	Paid-in Capital	Retained Earnings	Cumulative Other Comprehensive Income (Loss)	Treasury Stock
Beginning Balance at Mar. 03, 2018	$ 277,570		$ 6	$ 168,543	$ 726,232	$ (7,477)	$ (609,734)
Beginning Balance, Common Stock at Mar. 03, 2018		4,163
Net loss	(79,591)				(79,591)
Cumulative effect of accounting change	7,020				7,020
Other comprehensive income (loss)	77					77
Stock-based compensation expense	1,380			(25,791)			27,171
Stock-based compensation expense (in shares)		98
Stock purchase plan and other	712			(5,242)			5,954
Stock purchase plan and other (in shares)		17
Ending Balance at Sep. 01, 2018	207,168		6	137,510	653,661	(7,400)	(576,609)
Ending Balance, Common Stock at Sep. 01, 2018		4,278
Beginning Balance at Jun. 02, 2018	256,788		6	180,644	704,749	(7,374)	(621,237)
Beginning Balance, Common Stock at Jun. 02, 2018		4,124
Net loss	(51,088)				(51,088)
Other comprehensive income (loss)	(26)					(26)
Stock-based compensation expense	1,070			(40,076)			41,146
Stock-based compensation expense (in shares)		142
Stock purchase plan and other	424			(3,058)			3,482
Stock purchase plan and other (in shares)		12
Ending Balance at Sep. 01, 2018	207,168		6	137,510	653,661	(7,400)	(576,609)
Ending Balance, Common Stock at Sep. 01, 2018		4,278
Beginning Balance at Mar. 02, 2019	89,529		6	138,469	534,419	(7,861)	(575,504)
Beginning Balance, Common Stock at Mar. 02, 2019		4,281
Net loss	(182,264)				(182,264)
Cumulative effect of accounting change	1,543				1,543
Other comprehensive income (loss)	82					82
Stock-based compensation expense	918			19,069			(18,151)
Stock-based compensation expense (in shares)		(61)
Stock purchase plan and other	516			(15,595)			16,111
Stock purchase plan and other (in shares)		52
Ending Balance at Aug. 31, 2019	(89,676)		6	141,943	353,698	(7,779)	(577,544)
Ending Balance, Common Stock at Aug. 31, 2019		4,272
Beginning Balance at Jun. 01, 2019	9,223		6	151,692	454,249	(8,411)	(588,313)
Beginning Balance, Common Stock at Jun. 01, 2019		4,237
Net loss	(100,551)				(100,551)
Other comprehensive income (loss)	632					632
Stock-based compensation expense	790			1,534			(744)
Stock-based compensation expense (in shares)		(3)
Stock purchase plan and other	230			(11,283)			11,513
Stock purchase plan and other (in shares)		38
Ending Balance at Aug. 31, 2019	$ (89,676)		$ 6	$ 141,943	$ 353,698	$ (7,779)	$ (577,544)
Ending Balance, Common Stock at Aug. 31, 2019		4,272

Loss Per Share

Loss Per Share	6 Months Ended
	Aug. 31, 2019
Earnings Per Share [Abstract]
Loss Per Share	NOTE 1 – LOSS PER SHARE Basic loss per share amounts were determined by dividing net loss by the weighted average number of common shares outstanding for the period. Stock-based awards totaling 802,600 and 475,800 were excluded from the computation for the 13 and 26 weeks ended August 31, 2019, respectively, as the effect would be antidilutive. Stock-based awards totaling 133,200 and 98,600 were excluded from the computation for the 13 and 26 weeks ended September 1, 2018, respectively, as the effect would be antidilutive. Loss per share amounts were calculated as follows (in thousands except per share amounts): 13 Weeks Ended 26 Weeks Ended August 31, September 1, August 31, September 1, 2019 2018 2019 2018 Net loss $ (100,551 ) $ (51,088 ) $ (182,264 ) $ (79,591 ) Weighted average shares outstanding: Basic 4,139 4,028 4,116 4,019 Effect of dilutive stock options — — — — Effect of dilutive restricted stock — — — — Diluted 4,139 4,028 4,116 4,019 Loss per share: Basic $ (24.29 ) $ (12.68 ) $ (44.28 ) $ (19.80 ) Diluted $ (24.29 ) $ (12.68 ) $ (44.28 ) $ (19.80 ) Per share figures for all periods presented reflect the Company’s 1‑for‑20 reverse stock split effected on June 20, 2019. See Note 5 Notes to Consolidated Financial Statements

Leases

Leases	6 Months Ended
	Aug. 31, 2019
Leases [Abstract]
Leases	NOTE 2 – LEASES In the first quarter of fiscal 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-02, “ Leases Topic 842 Note 9 of the Notes to Consolidated Financial Statements The Company leases certain property consisting principally of its corporate headquarters, its retail stores, the majority of its distribution and fulfillment centers, and certain equipment under operating leases. Many of the Company’s leases include options to renew at the Company’s discretion. The renewal options are not included in the measurement of right-of-use (“ROU”) assets and lease liabilities as the Company is not reasonably certain to exercise available options. Rent escalations occurring during the term of the leases are included in the calculation of the future minimum lease payments and the rent expense related to these leases is recognized on a straight-line basis over the lease term. The Company determines whether an agreement contains a lease at inception based on the Company’s right to obtain substantially all of the economic benefits from the use of the identified asset and its right to direct the use of the identified asset. Lease liabilities represent the present value of future lease payments and the ROU assets represent the Company’s right to use the underlying assets for the respective lease terms. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The ROU asset is further adjusted to account for previously recorded lease-related expenses such as deferred rent and other lease liabilities. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate as the discount rate to calculate the present value of future lease payments. The incremental borrowing rate represents an estimate of the interest rate that would be required to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company elected not to recognize a ROU asset and a lease liability for leases with an initial term of twelve months or less and not to separate lease and non-lease components. In addition to minimum lease payments, certain leases require payment of a proportionate share of real estate taxes and certain building operating expenses or payments based on a percentage of sales in excess of a specified base. These variable lease costs are not included in the measurement of the ROU asset or lease liability due to unpredictability of the payment amount and are recorded as a lease expense in the period incurred. The Company’s lease agreements do not contain residual value guarantees or significant restrictions or covenants other than those customary in such arrangements. As of August 31, 2019, the Company did not have material leases that had been signed but not yet commenced. The components of lease cost are as follows (in thousands): 13 Weeks Ended 26 Weeks Ended August 31, August 31, 2019 2019 Operating lease cost $ 53,693 $ 109,603 Short-term lease cost 1,280 2,082 Variable lease cost 13,771 28,376 Less: Sublease income 424 856 Total lease cost $ 68,320 $ 139,205 The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company’s leases as of August 31, 2019: Weighted-average remaining lease term - operating leases (years) 5.03 Weighted-average discount rate - operating leases 10.04 % At August 31, 2019, the Company had the following future minimum operating lease payments (in thousands): Fiscal Year 2020 (remaining) $ 108,724 2021 195,117 2022 165,957 2023 131,316 2024 94,960 Thereafter 153,191 Total lease payments 849,265 Less: Interest 185,440 Total lease obligations $ 663,825 The following table discloses supplemental cash flow information related to the Company’s leases (in thousands): 13 Weeks Ended 26 Weeks Ended August 31, August 31, 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 56,634 $ 114,129

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets	6 Months Ended
	Aug. 31, 2019
Tangible Asset Impairment Charges [Abstract]
Impairment of Long-Lived Assets	NOTE 3 – IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets are reviewed for impairment at least quarterly or whenever an event or change in circumstances indicates that their carrying values may not be recoverable. If the impairment analysis indicates that the carrying value of the assets exceeds the sum of the expected undiscounted cash flows, the assets may be considered impaired. For store level long-lived assets, expected cash flows are determined based on management’s estimate of future sales, merchandise margin rates and expenses over the remaining expected terms of the leases. Long-lived store assets are valued at fair value using inputs classified as Level 3 in the fair value hierarchy, which are unobservable inputs based on the Company’s assumptions. Impairment, if any, is recorded in the period in which the impairment occurred. The Company recorded impairment charges for the second quarter and first half of fiscal 2020 of $3,026,000 and $3,206,000, respectively, related to fixed assets. The Company also recorded impairment charges for the second quarter and first half of fiscal 2020 of $1,267,000 and $1,439,000, respectively, related to lease ROU assets. Impairment charges were included in selling, general and administrative (“SG&A”) expenses. The Company recorded no impairment charges in the second quarter and first half of fiscal 2019. The projection of future cash flows requires the use of judgment and estimates. If actual results differ from the Company’s estimates, additional charges for asset impairments may be recorded in the future.

Long-Term Debt and Available Cr

Long-Term Debt and Available Credit	6 Months Ended
	Aug. 31, 2019
Debt Disclosure [Abstract]
Long-Term Debt and Available Credit	NOTE 4 – LONG-TERM DEBT AND AVAILABLE CREDIT Revolving Credit Facility — The Company has a $350,000,000 secured revolving credit facility, with a $150,000,000 accordion feature (subject to the terms and conditions set forth therein), that matures on June 2, 2022 (“Revolving Credit Facility”). Credit extensions under the Revolving Credit Facility are limited to the lesser of $350,000,000 or the amount of the calculated borrowing base, as defined in the Revolving Credit Facility, which was $251,936,000 as of August 31, 2019. The Company had $55,000,000 in cash borrowings and $46,431,000 in letters of credit outstanding under the Revolving Credit Facility, with $150,505,000 remaining available for cash borrowings, all as of August 31, 2019. At the Company’s option, borrowings will bear interest, payable quarterly or, if earlier, at the end of each interest period, at either the adjusted LIBOR rate as defined in the Revolving Credit Facility plus a spread varying from 125 to 150 basis points per annum, depending on the amount then borrowed under the Revolving Credit Facility, or the prime rate as defined in the Revolving Credit Facility plus a spread varying from 25 to 50 basis points per annum, depending on the amount then borrowed under the Revolving Credit Facility. The Revolving Credit Facility includes a $50,000,000 first-in, last-out tranche (“FILO Tranche”). The FILO Tranche expands the Revolving Credit Facility to $400,000,000 and modifies the borrowing base. The FILO Tranche includes a $15,000,000 first-in, last-out loan (“FILO Loan”), subject to a borrowing base, which bears interest at either the adjusted LIBOR rate plus 300 basis points per annum or the prime rate plus a spread varying from 25 to 50 basis points per annum, depending on the amount then borrowed under the Revolving Credit Facility. The FILO Tranche also includes a $35,000,000 term loan (“ABL Term Loan”), subject to a borrowing base, which bears interest at the adjusted LIBOR rate plus 800 basis points per annum, and which will amortize in equal quarterly installments of 1.25% of the original principal amount thereof commencing on June 30, 2020. The FILO Tranche is a term loan and does not revolve. The maturity date of each of the FILO Loan and the ABL Term Loan is June 2, 2022. As of August 31, 2019, the Company had $50,000,000 in cash borrowings under the FILO Loan and ABL Term Loan with a carrying value of $48,983,000, net of debt issuance costs. Term Loan Facility — The Company has a senior secured term loan facility that matures on April 30, 2021 (“Term Loan Facility”). As of August 31, 2019, March 2, 2019 and September 1, 2018, the Company had $190,000,000, $191,000,000 and $192,000,000, respectively, outstanding under the Term Loan Facility with carrying values of $188,685,000, $189,290,000 and $189,894,000, respectively, net of unamortized discounts and debt issuance costs. The fair value of the amount outstanding under the Term Loan Facility was approximately $51,272,000 as of August 31, 2019, which was measured at fair value using the quoted market price. The fair value measurement is classified as Level 2 in the fair value hierarchy based on the frequency and volume of trading for which the price was readily available. Level 2 inputs include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Company Owned Life Insurance Loans — During the second quarter of fiscal 2020, the Company entered into loans secured by Company owned life insurance (“COLI”) policies on former key executives. As of August 31, 2019, the Company had $14,244,000 in cash borrowings outstanding under the COLI loans. The cash surrender value of the related policies was $14,455,000 and is included in other noncurrent assets. Borrowings bear interest, payable annually, at the higher of the published monthly average as defined in the COLI policies or 5.0%. When a policy becomes payable in accordance with provisions of the policy, the related loan will mature and any outstanding loan amount will be deducted from the proceeds.

Matters Concerning Shareholders

Matters Concerning Shareholders' Equity (Deficit)	6 Months Ended
	Aug. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Matters Concerning Shareholders' Equity (Deficit)	NOTE 5 – MATTERS CONCERNING SHAREHOLDERS’ EQUITY (DEFICIT) On June 19, 2019, the Company’s Board of Directors authorized a 1-for-20 reverse stock split of the Company’s common stock (“Reverse Stock Split”) and the Company filed a Certificate of Amendment (“Amendment”) to its Restated Articles of Incorporation with the Secretary of State of the State of Delaware to effect the Reverse Stock Split with respect to the Company’s issued and outstanding shares of common stock, as well as its shares held in treasury. Pursuant to the Amendment, effective as of 12:01 a.m., Eastern Time, on June 20, 2019, each twenty shares of common stock issued and outstanding or held in treasury was, automatically and without any action on the Note 1 of the Notes to Consolidated Financial Statements

Revenue Recognition

Revenue Recognition	6 Months Ended
	Aug. 31, 2019
Revenue From Contract With Customer [Abstract]
Revenue Recognition	NOTE 6 – REVENUE RECOGNITION Revenue is recognized upon customer receipt or delivery for retail sales. The Company’s revenues are reported net of discounts, returns and sales tax, and include wholesale sales and royalties. Amounts charged to customers for shipping and handling are included in net sales. A reserve has been established for estimated merchandise returns based upon historical experience and other known factors. The gross reserve for estimated merchandise returns at August 31, 2019 and September 1, 2018, was $4,480,000 and $5,773,000, respectively. For the 13 and 26 weeks ended August 31, 2019, the Company recognized revenue of $2,753,000 and $7,259,000, respectively, for gift card redemptions. For the 13 and 26 weeks ended September 1, 2018, the Company recognized revenue of $3,276,000 and $8,610,000, respectively, for gift card redemptions. Prior to recognition as revenue, these amounts were previously included in gift cards and other deferred revenue on the Company’s consolidated balance sheets as of March 2, 2019 and March 3, 2018, respectively. Disaggregated Revenues — Net sales consisted almost entirely of sales to retail customers, net of discounts, returns and sales tax, but also included delivery revenues, wholesale sales and royalties, and gift card breakage. Net sales were as follows (in thousands): 13 Weeks Ended 26 Weeks Ended August 31, September 1, August 31, September 1, 2019 2018 2019 2018 Retail sales $ 302,028 $ 352,800 $ 613,952 $ 721,793 Other (1) 2,562 2,536 4,962 5,407 Net sales $ 304,590 $ 355,336 $ 618,914 $ 727,200 (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 in Mexico and El Salvador and online in Mexico. Other sales consisted primarily of these wholesale sales and royalties received from Grupo Sanborns, as well as gift card breakage.

Income Tax

Income Tax	6 Months Ended
	Aug. 31, 2019
Income Tax Disclosure [Abstract]
Income Tax	NOTE 7 – INCOME TAX The income tax provision for the second quarter of fiscal 2020 was $2,573,000, compared to an income tax benefit of $14,126,000 during the same period in the prior fiscal year. The effective tax rate for the second quarter of fiscal 2020 was (2.6%), compared to 21.7% for the same period during fiscal 2019. The income tax provision for the first half of fiscal 2020 was $2,705,000, compared to an income tax benefit of $20,197,000 during the same period in the prior fiscal year. The effective tax rate for the first half of fiscal 2020 was (1.5%), compared to 20.2% in the same period during fiscal 2019. The change in income tax provision (benefit) primarily relates to the timing of the establishment of the Company’s valuation allowance. The Company recognized a federal benefit related to the net loss in the first half of fiscal 2019 prior to the establishment of the valuation allowance in the third quarter of fiscal 2019 against its U.S. federal deferred tax assets and a portion of its state deferred tax assets. During the second quarter of fiscal 2020, the Company recorded an additional valuation allowance of $2,609,000 related to certain state jurisdictions based upon the determination that it was not more likely than not that such assets would be realized. As of August 31, 2019, the Company had total unrecognized tax benefits of $4,100,000, the majority of which, if recognized, would affect the Company’s effective tax rate. It is reasonably possible a significant portion of the Company’s gross unrecognized tax benefits could decrease within the next twelve months primarily due to settlements with certain taxing jurisdictions.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Aug. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 8 – COMMITMENTS AND CONTINGENCIES Putative class action complaints were filed in the United States District Court for the Northern District of Texas – Dallas Division against Pier 1 Imports, Inc., Alexander W. Smith and Charles H. Turner in August and October 2015 alleging violations under the Securities Exchange Act of 1934, as amended. The lawsuits, which were consolidated into a single action captioned Town of Davie Police Pension Plan, Plaintiff, v. Pier 1 Imports, Inc., Alexander W. Smith and Charles H. Turner, Defendants, were filed on behalf of a purported putative class of investors who purchased or otherwise acquired stock of Pier 1 Imports, Inc. between April 10, 2014 and December 17, 2015. The plaintiffs sought to recover damages purportedly caused by the Defendants' alleged violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On June 25, 2018, the District Court granted the Company’s motion to dismiss the complaint, with prejudice. The plaintiffs subsequently appealed and on August 19, 2019 the United States Court of Appeals for the Fifth Circuit affirmed the District Court’s dismissal of the amended complaint. The Company announced in January 2016 a voluntary recall of its Swingasan Chair and Stand in cooperation with the Consumer Product Safety Commission (“CPSC”). In September 2016, the Company received a staff investigatory letter from the CPSC indicating that the CPSC would investigate whether the Company complied with certain reporting requirements of the Consumer Product Safety Act with respect to the recall. The Company responded to the inquiry and cooperated with the CPSC. On September 20, 2017, the Company received a letter from the CPSC proposing to resolve certain alleged violations of the Consumer Product Safety Act relating to the Swingasan recall on terms which would require, among other things, the payment of a civil money penalty. On October 27, 2017, the Company submitted its response to the CPSC letter. The Company disagrees with a number of the allegations and legal conclusions asserted by the CPSC and believes the requested civil money penalty is excessive in view of the circumstances. The CPSC has responded to the Company’s letter and generally declined to accept the Company’s position. The Company entered into settlement discussions with the CPSC during the third quarter of fiscal 2019 that are ongoing. Given the nature of this matter and the uncertainty as to how and when it will be resolved, the Company believes that a reasonable estimate of the potential range of loss in connection with this matter is $2,000,000 to $6,200,000. While the Company anticipates that the final settlement will fall within the estimated range of outcomes, the final terms of the resolution of this matter cannot be predicted with certainty and no assurances can be given as to the specific amount that the Company may be required to pay. There are various other claims, lawsuits, inquiries, investigations and pending actions against the Company incident to the operation of its business. The Company considers these other matters to be ordinary and routine in nature. The Company maintains insurance against most of these matters. It is the opinion of management, after consultation with counsel, that the ultimate resolution of such matters will not have a material adverse effect, either individually or in the aggregate, on the Company’s financial condition, results of operations or liquidity.

New Accounting Standards

New Accounting Standards	6 Months Ended
	Aug. 31, 2019
Accounting Changes And Error Corrections [Abstract]
New Accounting Standards	NOTE 9 – NEW ACCOUNTING STANDARDS Accounting Standards — ASU 2016-02 — Leases (Topic 842) The Company adopted ASU 2016-02, “ Leases Topic 842 The Company recognized a cumulative-effect adjustment to increase the opening balance of retained earnings by $1,543,000 as of March 3, 2019, as a result of previous sale leaseback transactions and previous store impairments. The adoption of ASU 2016-02 did not have a material impact on the Company’s consolidated statements of operations or consolidated statements of cash flows for the periods ended August 31, 2019. See Note 2 of the Notes to Consolidated Financial Statements ASU 2018-02 — Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-02, “ Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Accounting Standards — ASU 2016-13 — Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2018-15 — I ntangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,”

New Accounting Standards (Polic

New Accounting Standards (Policies)	6 Months Ended
	Aug. 31, 2019
Accounting Changes And Error Corrections [Abstract]
New Accounting Standards	Accounting Standards — ASU 2016-02 — Leases (Topic 842) The Company adopted ASU 2016-02, “ Leases Topic 842 The Company recognized a cumulative-effect adjustment to increase the opening balance of retained earnings by $1,543,000 as of March 3, 2019, as a result of previous sale leaseback transactions and previous store impairments. The adoption of ASU 2016-02 did not have a material impact on the Company’s consolidated statements of operations or consolidated statements of cash flows for the periods ended August 31, 2019. See Note 2 of the Notes to Consolidated Financial Statements ASU 2018-02 — Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-02, “ Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Accounting Standards — ASU 2016-13 — Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2018-15 — I ntangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,”

Loss Per Share (Tables)

Loss Per Share (Tables)	6 Months Ended
	Aug. 31, 2019
Earnings Per Share [Abstract]
Calculation of Loss Per Share	Loss per share amounts were calculated as follows (in thousands except per share amounts): 13 Weeks Ended 26 Weeks Ended August 31, September 1, August 31, September 1, 2019 2018 2019 2018 Net loss $ (100,551 ) $ (51,088 ) $ (182,264 ) $ (79,591 ) Weighted average shares outstanding: Basic 4,139 4,028 4,116 4,019 Effect of dilutive stock options — — — — Effect of dilutive restricted stock — — — — Diluted 4,139 4,028 4,116 4,019 Loss per share: Basic $ (24.29 ) $ (12.68 ) $ (44.28 ) $ (19.80 ) Diluted $ (24.29 ) $ (12.68 ) $ (44.28 ) $ (19.80 )

Leases (Tables)

Leases (Tables)	6 Months Ended
	Aug. 31, 2019
Leases [Abstract]
Components of Lease Cost	The components of lease cost are as follows (in thousands): 13 Weeks Ended 26 Weeks Ended August 31, August 31, 2019 2019 Operating lease cost $ 53,693 $ 109,603 Short-term lease cost 1,280 2,082 Variable lease cost 13,771 28,376 Less: Sublease income 424 856 Total lease cost $ 68,320 $ 139,205
Summary of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate	The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company’s leases as of August 31, 2019: Weighted-average remaining lease term - operating leases (years) 5.03 Weighted-average discount rate - operating leases 10.04 %
Summary of Future Minimum Operating Lease Payments	At August 31, 2019, the Company had the following future minimum operating lease payments (in thousands): Fiscal Year 2020 (remaining) $ 108,724 2021 195,117 2022 165,957 2023 131,316 2024 94,960 Thereafter 153,191 Total lease payments 849,265 Less: Interest 185,440 Total lease obligations $ 663,825
Supplemental Cash Flow Information Related to Company's Leases	The following table discloses supplemental cash flow information related to the Company’s leases (in thousands): 13 Weeks Ended 26 Weeks Ended August 31, August 31, 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 56,634 $ 114,129

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Aug. 31, 2019
Revenue From Contract With Customer [Abstract]
Summary of Net Sales	Net sales were as follows (in thousands): 13 Weeks Ended 26 Weeks Ended August 31, September 1, August 31, September 1, 2019 2018 2019 2018 Retail sales $ 302,028 $ 352,800 $ 613,952 $ 721,793 Other (1) 2,562 2,536 4,962 5,407 Net sales $ 304,590 $ 355,336 $ 618,914 $ 727,200 (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 in Mexico and El Salvador and online in Mexico. Other sales consisted primarily of these wholesale sales and royalties received from Grupo Sanborns, as well as gift card breakage.

Loss Per Share - Additional Inf

Loss Per Share - Additional Information (Detail)	Jun. 20, 2019	Aug. 31, 2019shares	Sep. 01, 2018shares	Aug. 31, 2019shares	Sep. 01, 2018shares
Earnings Per Share [Abstract]
Outstanding stock options excluded from computation of diluted earnings per share		802,600	133,200	475,800	98,600
Reverse stock split ratio	0.05

Calculation of Loss Per Share (

Calculation of Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Sep. 01, 2018	Aug. 31, 2019	Sep. 01, 2018
Earnings Per Share Disclosure [Line Items]
Net loss	$ (100,551)	$ (51,088)	$ (182,264)	$ (79,591)
Weighted average shares outstanding - Basic	4,139	4,028	4,116	4,019
Weighted average shares outstanding - Diluted	4,139	4,028	4,116	4,019
Loss per share - Basic	$ (24.29)	$ (12.68)	$ (44.28)	$ (19.80)
Loss per share - Diluted	$ (24.29)	$ (12.68)	$ (44.28)	$ (19.80)

Leases - Components of Lease Co

Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Aug. 31, 2019	Aug. 31, 2019
Leases [Abstract]
Operating lease cost	$ 53,693	$ 109,603
Short-term lease cost	1,280	2,082
Variable lease cost	13,771	28,376
Less: Sublease income	424	856
Total lease cost	$ 68,320	$ 139,205

Leases - Summary of Weighted-Av

Leases - Summary of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Detail)	Aug. 31, 2019
Leases [Abstract]
Weighted-average remaining lease term - operating leases (years)	5 years 10 days
Weighted-average discount rate - operating leases	10.04%

Leases - Summary of Future Mini

Leases - Summary of Future Minimum Operating Lease Payments (Detail) $ in Thousands	Aug. 31, 2019USD ($)
Leases [Abstract]
2020 (remaining)	$ 108,724
2021	195,117
2022	165,957
2023	131,316
2024	94,960
Thereafter	153,191
Total lease payments	849,265
Less: Interest	185,440
Total lease obligations	$ 663,825

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information Related to Company's Leases (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Aug. 31, 2019	Aug. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 56,634	$ 114,129

Impairment of Long-Lived Asse_2

Impairment of Long-Lived Assets - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Sep. 01, 2018	Aug. 31, 2019	Sep. 01, 2018
Tangible Asset Impairment Charges [Abstract]
Impairment charges related to fixed assets	$ 3,026,000	$ 0	$ 3,206,000	$ 0
Impairment charges related to lease ROU assets	$ 1,267,000		$ 1,439,000

Long-Term Debt and Available _2

Long-Term Debt and Available Credit - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2019	Mar. 02, 2019	Sep. 01, 2018
Term Loan Facility
Debt Instrument [Line Items]
Borrowings under loan facility	$ 190,000	$ 191,000	$ 192,000
Carrying value of long term debt	188,685	$ 189,290	$ 189,894
Term Loan Facility | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Fair value of term loan facility	51,272
Company Owned Life Insurance Loans
Debt Instrument [Line Items]
Borrowings under loan facility	14,244
Cash surrender value of life insurance policy	$ 14,455
Borrowing interest terms	Borrowings bear interest, payable annually, at the higher of the published monthly average as defined in the COLI policies or 5.0%.
FILO Loan
Debt Instrument [Line Items]
Borrowings outstanding	$ 50,000
ABL Term Loan
Debt Instrument [Line Items]
Loan, face amount, subject to borrowing base	48,983
Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	350,000
Credit facility accordion feature	$ 150,000
Extended maturity date of revolving credit facility	Jun. 2, 2022
Credit facility borrowing base	$ 251,936
Borrowings outstanding	55,000
Remaining borrowing	$ 150,505
Revolving Credit Facility | LIBOR | Minimum
Debt Instrument [Line Items]
Basis points	1.25%
Revolving Credit Facility | LIBOR | Maximum
Debt Instrument [Line Items]
Basis points	1.50%
Revolving Credit Facility | Prime Rate | Minimum
Debt Instrument [Line Items]
Basis points	0.25%
Revolving Credit Facility | Prime Rate | Maximum
Debt Instrument [Line Items]
Basis points	0.50%
Letters of Credit And Bankers' Acceptances
Debt Instrument [Line Items]
Borrowings outstanding	$ 46,431
Amended Secured Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	400,000
Amended Secured Credit Facility | FILO Tranche
Debt Instrument [Line Items]
Credit facility, additional borrowing capacity	50,000
Amended Secured Credit Facility | FILO Loan
Debt Instrument [Line Items]
Loan, face amount, subject to borrowing base	$ 15,000
Maturity date of loan	Jun. 2, 2022
Amended Secured Credit Facility | ABL Term Loan
Debt Instrument [Line Items]
Loan, face amount, subject to borrowing base	$ 35,000
Percentage of quarterly installments of original principal payments	1.25%
Maturity date of loan	Jun. 2, 2022
Amended Secured Credit Facility | LIBOR | FILO Loan
Debt Instrument [Line Items]
Basis points	3.00%
Amended Secured Credit Facility | LIBOR | ABL Term Loan
Debt Instrument [Line Items]
Basis points	8.00%
Amended Secured Credit Facility | Prime Rate | Minimum | FILO Loan
Debt Instrument [Line Items]
Basis points	0.25%
Amended Secured Credit Facility | Prime Rate | Maximum | FILO Loan
Debt Instrument [Line Items]
Basis points	0.50%

Matters Concerning Shareholde_2

Matters Concerning Shareholders' Equity (Deficit) - Additional Information (Detail)	Jun. 20, 2019shares	Aug. 31, 2019shares	Jun. 19, 2019shares	Mar. 02, 2019shares	Sep. 01, 2018shares
Equity [Abstract]
Reverse stock split ratio, description	1-for-20
Reverse stock split ratio	0.05
Common stock, shares authorized	25,000,000	25,000,000	500,000,000	25,000,000	25,000,000

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Sep. 01, 2018	Aug. 31, 2019	Sep. 01, 2018
Disaggregation Of Revenue [Line Items]
Gross reserve for estimated merchandise returns	$ 4,480	$ 5,773	$ 4,480	$ 5,773
Gift Card Redemptions
Disaggregation Of Revenue [Line Items]
Revenue recognized	$ 2,753	$ 3,276	$ 7,259	$ 8,610

Revenue Recognition - Summary o

Revenue Recognition - Summary of Net Sales (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Aug. 31, 2019	Sep. 01, 2018	Aug. 31, 2019	Sep. 01, 2018
Disaggregation Of Revenue [Line Items]
Net sales		$ 304,590	$ 355,336	$ 618,914	$ 727,200
ASU 2014-09
Disaggregation Of Revenue [Line Items]
Net sales		304,590	355,336	618,914	727,200
ASU 2014-09 | Retail Sales
Disaggregation Of Revenue [Line Items]
Net sales		302,028	352,800	613,952	721,793
ASU 2014-09 | Other
Disaggregation Of Revenue [Line Items]
Net sales	[1]	$ 2,562	$ 2,536	$ 4,962	$ 5,407
[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 in Mexico and El Salvador and online in Mexico. Other sales consisted primarily of these wholesale sales and royalties received from Grupo Sanborns, as well as gift card breakage.

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2019	Sep. 01, 2018	Aug. 31, 2019	Sep. 01, 2018
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 2,573	$ (14,126)	$ 2,705	$ (20,197)
Effective tax rate	(2.60%)	21.70%	(1.50%)	20.20%
Valuation allowance	$ 2,609
Unrecognized tax benefits	$ 4,100		$ 4,100

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - Swingasan Chair and Stand - Voluntary Product Recall	Aug. 31, 2019USD ($)
Minimum
Commitments and Contingencies Disclosure [Line Items]
Estimate of potential loss	$ 2,000,000
Maximum
Commitments and Contingencies Disclosure [Line Items]
Estimate of potential loss	$ 6,200,000

New Accounting Standards - Addi

New Accounting Standards - Additional Information (Detail) - USD ($)	Mar. 03, 2019	Aug. 31, 2019	Sep. 01, 2018
Change In Accounting Estimate [Line Items]
Cumulative effect adjustment of retained earnings		$ 1,543,000	$ 7,020,000
ASU 2016-02
Change In Accounting Estimate [Line Items]
Cumulative effect adjustment of retained earnings	$ 1,543,000