FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended August 29, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the transition period from [ ] to [ ]
Commission File Number 1-7832
PIER 1 IMPORTS, INC.
(Exact name of registrant as specified in its charter)
Delaware 75-1729843
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
301 Commerce Street, Suite 600, Fort Worth, Texas 76102
(Address of principal executive offices including zip code)
(817) 252-8000
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [ X ]. No [ ].
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Shares outstanding as of October 2, 1998
- ----------------------------- ----------------------------------------
Common Stock, $1.00 par value 97,266,076
PART I
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Item 1. Financial Statements.
--------------------
PIER 1 IMPORTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
Aug. 29, Aug. 30, Aug. 29, Aug. 30,
1998 1997 1998 1997
-------- -------- -------- --------
Net sales $281,489 $258,105 $531,997 $487,348
Operating costs and expenses:
Cost of sales (including
buying and store occupancy) 163,421 151,442 304,242 281,529
Selling, general and
administrative expenses 82,199 73,011 158,489 143,949
Depreciation and amortization 6,553 5,695 13,549 11,110
-------- -------- -------- --------
252,173 230,148 476,280 436,588
-------- -------- -------- --------
Operating income 29,316 27,957 55,717 50,760
Nonoperating (income) and expense:
Interest and investment income (909) (255) (1,639) (549)
Interest expense 2,064 2,071 4,192 4,098
Trading loss (recovery) -- (6,355) -- (6,355)
-------- -------- -------- --------
1,155 (4,539) 2,553 (2,806)
-------- -------- -------- --------
Income before income taxes 28,161 32,496 53,164 53,566
Provision for income taxes 10,700 10,454 20,202 18,885
-------- -------- -------- --------
Net income $ 17,461 $ 22,042 $ 32,962 $ 34,681
======== ======== ======== ========
Net income per share:*
Basic $.18 $.22 $.33 $.34
======== ======== ======== ========
Diluted $.17 $.20 $.31 $.32
======== ======== ======== ========
Average shares outstanding during
period:*
Basic 98,314 101,188 99,164 101,095
======== ======== ======== ========
Diluted 110,414 112,999 111,110 112,799
======== ======== ======== ========
*Adjusted to reflect a three for two stock split effected in the form of a
stock dividend distributed July 29, 1998.
The accompanying notes are an integral part of these financial statements.
PIER 1 IMPORTS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
(Unaudited)
August 29, February 28,
1998 1998
---------- ------------
ASSETS
Current assets:
Cash, including temporary investments of $19,599
and $67,972, respectively $ 33,880 $ 80,729
Accounts receivable, net 12,797 12,638
Inventories 264,519 234,180
Prepaid expenses and other current assets 72,896 74,834
-------- --------
Total current assets 384,092 402,381
Properties, net 214,888 216,330
Other assets 38,892 34,699
-------- --------
$637,872 $653,410
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current portion of long-term debt $ 2,931 $ 1,994
Accounts payable and accrued liabilities 122,631 119,596
-------- --------
Total current liabilities 125,562 121,590
Long-term debt 114,479 114,881
Other non-current liabilities 26,157 24,208
Stockholders' equity:
Common stock, $1.00 par, 500,000,000 shares
authorized, 100,779,000 and 67,903,000 issued,
respectively 100,779 67,903
Paid-in capital 164,857 166,824
Retained earnings 159,904 165,345
Cumulative other comprehensive income (1,523) (1,108)
Less - 2,147,000 and 176,000 common shares in
treasury, at cost, respectively (50,001) (3,149)
Less - unearned compensation (2,342) (3,084)
-------- --------
371,674 392,731
-------- --------
$637,872 $653,410
======== ========
The accompanying notes are an integral part of these financial statements.
PIER 1 IMPORTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
August 29, August 30,
1998 1997
---------- ----------
Cash flow from operating activities:
Net income $32,962 $34,681
Adjustments to reconcile to net cash provided by
operating activities:
Depreciation and amortization 13,549 11,110
Deferred taxes and other (1,581) 1,772
Changes in cash from:
Inventories (29,849) (20,064)
Accounts receivable and other current assets 380 (3,745)
Accounts payable and accrued expenses 4,302 7,623
Other assets, liabilities and other, net 1,290 (254)
------- -------
Net cash provided by operating activities 21,053 31,123
------- -------
Cash flow from investing activities:
Capital expenditures (48,369) (24,583)
Proceeds from disposition of properties 33,455 5,758
Beneficial interest in securitized receivables 1,968 (7,881)
Acquisition of national bank charter -- (1,003)
------- -------
Net cash used in investing activities (12,946) (27,709)
------- -------
Cash flow from financing activities:
Cash dividends (5,680) (4,192)
Repayments of long-term debt (350) --
Purchases of treasury stock (51,909) (3,366)
Proceeds from stock options exercised, stock
purchase plan and other, net 2,983 1,651
------- -------
Net cash used in financing activities (54,956) (5,907)
------- -------
Change in cash and cash equivalents (46,849) (2,493)
Cash and cash equivalents at beginning of period 80,729 32,280
------- -------
Cash and cash equivalents at end of period $33,880 $29,787
======= =======
The accompanying notes are an integral part of these financial statements.
PIER 1 IMPORTS, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED AUGUST 29, 1998
(In thousands)
(Unaudited)
Cumulative
Other Total
Common Paid-in Retained Comprehensive Treasury Unearned Stockholders'
Stock Capital Earnings Income Stock Compensation Equity
-------- -------- -------- ---------------------- ------------- -------------
Balance, February 28, 1998 $ 67,903 $166,824 $165,345 ($1,108) ($ 3,149) ($3,084) $392,731
--------
Comprehensive income
Net income 32,962 32,962
Other comprehensive income, net of tax:
Foreign currency translation adjustments (415) (415)
--------
Comprehensive income 32,547
--------
Purchases of treasury stock (51,909) (51,909)
Restricted stock grant and amortization 885 885
Stock purchase plan, exercise of stock
options and other (2,082) 5,057 2,975
Cash dividends, declared or paid ($.06
per share) (5,680) (5,680)
Three for two stock split 32,866 (32,723) (143) --
Conversion of 5 3/4% convertible debt 10 115 125
------- -------- -------- ------- -------- ------- --------
Balance, August 29, 1998 $100,779 $164,857 $159,904 ($1,523) ($50,001) ($2,342) $371,674
======= ======== ======== ======= ======= ===== ========
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
PIER 1 IMPORTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED AUGUST 29, 1998
AND AUGUST 30, 1997
(Unaudited)
The accompanying unaudited financial statements should be read in
conjunction with the Form 10-K for the year ended February 28, 1998. All
adjustments that are, in the opinion of management, necessary for a fair
statement of the financial position as of August 29, 1998, and the results of
operations and cash flows for the three and six months ended August 29, 1998
and August 30, 1997 have been made and consist only of normal recurring
adjustments, except for the net trading loss recovery recorded for the three
and six months ended August 30, 1997. The results of operations for the
three and six months ended August 29, 1998 and August 30, 1997 are not
indicative of results to be expected for the fiscal year because of, among
other things, seasonality factors in the retail business. The
classifications of certain amounts previously reported in the statement of
cash flows for the six months ended August 30, 1997 have been modified to
conform with the August 29, 1998 method of presentation.
Note 1 - Net income per share
Basic net income per share was determined by dividing net income by the
weighted average number of common shares outstanding. Diluted net income per
share amounts are similarly computed, but include the effect, when dilutive,
of the Company's weighted average number of stock options outstanding and the
average number of common shares that would be issuable upon conversion of the
Company's convertible securities. To determine diluted net income, interest
and debt issue costs, net of any applicable taxes, have been added back to
net income to reflect assumed conversions.
Net income per share for the three and six months ended August 29, 1998
and August 30, 1997 are calculated as follows:
Three Months Ended Six Months Ended
Aug. 29, Aug. 30, Aug. 29, Aug. 30,
1998 1997 1998 1997
-------- -------- -------- --------
(in thousands except per share amounts)
Net income $17,461 $22,042 $32,962 $34,681
Assumed conversion of 5 3/4%
subordinated notes:
Plus interest and debt issue
costs, net of tax 838 812 1,676 1,623
------- ------- ------- -------
Diluted net income $18,299 $22,854 $34,638 $36,304
======= ======= ======= =======
Average shares outstanding during period:
Basic 98,314 101,188 99,164 101,095
Plus assumed exercise of stock
options 1,621 1,321 1,467 1,214
Plus assumed conversion of 5 3/4%
subordinated notes to common
stock 10,479 10,490 10,479 10,490
------- ------- ------- -------
Diluted 110,414 112,999 111,110 112,799
======= ======= ======= =======
Net income per share:
Basic $.18 $.22 $.33 $.34
==== ==== ==== ====
Diluted $.17 $.20 $.31 $.32
==== ==== ==== ====
Note 2 - Impact of new accounting standards
In June 1997, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting
Comprehensive Income." This standard was adopted by the Company in the first
quarter of fiscal 1999. SFAS No. 130 establishes new rules for the reporting
and display of comprehensive income and its components, which for the Company
includes foreign currency translation adjustments. The impact of the
adoption of this statement was primarily limited to the form and content of
the disclosures on the Company's consolidated balance sheets and statement of
stockholders' equity with no impact to the Company's financial position or
net income.
The components of comprehensive income, net of related tax, for the
three and six months ended August 29, 1998 and August 30, 1997 are as
follows:
Three Months Ended Six Months Ended
Aug. 29, Aug. 30, Aug. 29, Aug. 30,
1998 1997 1998 1997
-------- -------- -------- --------
(in thousands)
Net income $17,461 $22,042 $32,962 $34,681
Foreign currency translation
adjustments (208) (248) (415) (263)
------- ------- ------- -------
Comprehensive income $17,253 $21,794 $32,547 $34,418
======= ======= ======= =======
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." This statement establishes accounting
and reporting guidelines for derivatives and requires an enterprise to record
all derivatives as assets or liabilities on the balance sheet at fair value.
Additionally, this statement establishes accounting treatment for three types
of hedges: hedges of changes in the fair value of assets, liabilities or
firm commitments; hedges of the variable cash flows of forecasted
transactions; and hedges of foreign currency exposures of net investments in
foreign operations. All derivatives that qualify as a hedge, depending upon
the nature of that hedge, will either be offset against the change in fair
value of the hedged assets, liabilities or firm commitments through earnings
or recognized in other comprehensive income until the hedged item is
recognized in earnings. SFAS No. 133 is effective for years beginning after
June 15, 1999. The Company is analyzing the implementation requirements and
does not anticipate that the adoption of this statement will have a material
impact on the Company's consolidated balance sheets or statements of
operations, stockholders' equity and cash flows.
Note 3 - Three for two stock split
On July 29, 1998, the Company distributed 32,866,000 common shares
pursuant to a three for two stock split, effected in the form of a 50% common
stock dividend, to stockholders of record on July 15, 1998. All per share
amounts have been adjusted to reflect the impact of the three for two stock
split.
PART I
------
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
Pier 1 Imports, Inc. ("the Company") recorded net sales of $281.5
million and $532.0 million for the second quarter and first six months of
fiscal 1999, respectively, increases of 9% over both the second quarter and
first six months of fiscal 1998. Same-store sales for the second quarter and
first six months of fiscal 1999 both grew 7% compared to the same periods in
fiscal 1998. The continued growth in same-store sales is primarily due to
the Company's expanded network television advertising campaign, which has
added more networks to the previous advertising schedule, and the increasing
number of remodeled and remerchandised stores. The Company has completed the
remodeling of 27 stores in the first six months of fiscal 1999 and expects to
remodel an additional 18 stores in the last six months of fiscal 1999. Hard
goods sales of furniture and bed and bath items fueled sales in the second
quarter of fiscal 1999 with increases of 13.6% and 16.0%, respectively,
compared to the second quarter of fiscal 1998. Sales on the Company's
proprietary credit card totaled $140.8 million, or 28.4% of total U.S. stores
sales, during the first six months of fiscal 1999, an increase of $9.4
million, or 7.1% over proprietary credit card sales of $131.4 million for the
same period of fiscal 1998. Continued growth in the Company's proprietary
credit card sales is primarily a result of targeted marketing promotions,
including programs that enable customers to make lower periodic payments on
big ticket purchases. The Company opened 19 new stores and closed four
stores in North America during the second quarter of fiscal 1999, bringing
the North American store count to 724 at the end of the second quarter of
fiscal 1999 compared to 698 stores a year earlier. Stores worldwide,
including North America, Puerto Rico, the United Kingdom, Mexico and Japan,
totaled 773 at the fiscal 1999 second quarter-end.
Gross profit, after related buying and store occupancy costs, expressed
as a percentage of sales, increased 60 basis points to 41.9% for the second
quarter of fiscal 1999 and increased 60 basis points to 42.8% for the first
six months of fiscal 1999 compared to the same periods in fiscal 1998.
Merchandise margins, as a percentage of sales, decreased 30 basis points to
53.6% in the second quarter of fiscal 1999 primarily as a result of increased
clearance and promotional markdowns on seasonal merchandise. Seasonal items
were cleared from stores in order to accommodate fall merchandise scheduled
for early shipment to guard against potential delays that might result from
shortages of shipping containers from Asia. Merchandise margins for the
first six months of fiscal 1999 remained flat at 55.1%. Store occupancy
costs, as a percentage of sales, improved 90 basis points to 11.6% for the
second quarter of fiscal 1999 and improved 60 basis points to 12.3% for the
first six months of fiscal 1999 versus comparable periods of fiscal 1998.
These decreases are primarily due to a non-recurring gain realized on the
relinquishment of a real estate option and due to leveraging of relatively
fixed rental rates on store leases over a higher sales base.
Selling, general and administrative expenses, including marketing, as a
percentage of sales, increased 90 basis points to 29.2% in the second quarter
of fiscal 1999 and increased 30 basis points to 29.8% for the first six
months of fiscal 1999 compared to the same periods a year earlier. In total
dollars, selling, general and administrative expenses increased $9.2 million
for the second quarter of fiscal 1999 and increased $14.5 million for the
first six months of fiscal 1999 versus the comparable periods of fiscal 1998.
Of the $9.2 million increase in these expenses for the second quarter of
fiscal 1999, $5.0 million was attributable to expenses that normally grow
proportionately with sales and net new stores, such as store salaries,
equipment rental, supplies and marketing. These variable expenses remained
constant as a percentage of sales compared to the second quarter of fiscal
1998. The remaining $4.2 million increase was primarily a result of
increased non-store compensation costs.
Operating income increased $1.3 million, or 4.9%, to $29.3 million
during the second quarter of fiscal 1999 from $28.0 million in the second
quarter of fiscal 1998. For the first six months of fiscal 1999, operating
income increased $4.9 million, or 9.8%, to $55.7 million compared to $50.8
million for the same period a year ago.
Net interest expense decreased $0.7 million during the second quarter of
fiscal 1999 and $1.0 million during the first six months of fiscal 1999
versus the same periods of fiscal 1998. These decreases are primarily a
result of increased interest income on higher cash balances and short-term
investments.
In the second quarter of fiscal 1998, the Company received a $7.5
million partial recovery of the December 1995 trading loss. Of this
settlement, $1.1 million was considered a recovery of fiscal 1998 legal fees,
resulting in a net recovery of trading losses of $6.4 million. The Company
did not record any income tax benefit on the previously reported net trading
loss and thus no income tax expense was provided for the net trading
recovery.
The Company's effective income tax rate for fiscal 1999 is estimated at
38% compared to 40% recorded in the first six months of fiscal 1998,
exclusive of the aforementioned net trading loss recovery. The decline in
the estimated effective income tax rate is a result of favorable resolution
of a number of federal tax issues as well as reduced state income taxes
resulting from certain operational initiatives.
Net income for the second quarter of fiscal 1999 was $17.5 million, or
$.17 per share on a diluted basis, compared to net income before a special
credit of $15.7 million, or $.15 per share on a diluted basis, for the second
quarter of fiscal 1998. Net income for the first six months of fiscal 1999
was $33.0 million, or $.31 per share on a diluted basis, compared to net
income before the special credit of $28.3 million, or $.27 per share on a
diluted basis, for the first six months of fiscal 1998. The special credit
for the second quarter and first six months of fiscal 1998 consists of the
net trading loss recovery of $6.4 million, or $.05 per share on a diluted
basis.
Liquidity and Capital Resources
Cash, including temporary investments, decreased $46.8 million to $33.9
million at the end of the second quarter of fiscal 1999 from $80.7 million at
fiscal 1998 year-end. This decrease is primarily due to repurchases of the
Company's common stock in open market transactions of $51.9 million, capital
expenditures of $48.4 million and cash dividend payments of $5.7 million.
These cash expenditures were partially offset by cash flow from operations of
$21.1 million, proceeds from disposition of properties of $33.5 million and
decreased beneficial interest in securitized receivables of $2.0 million.
Other financing activities provided cash of $2.6 million. Cash flow from
operations declined $10.1 million during the first six months of fiscal 1999
over the same period of fiscal 1998 largely due to a $9.8 million greater
increase in inventories for the first six months of fiscal 1999 compared to
the first six months of fiscal 1998.
The Company expects working capital requirements will continue to be
funded through cash flow from operations, sales of proprietary credit card
receivables and bank lines of credit. The bank facilities consist of a
committed $65 million competitive advance and revolving credit facility,
which expires in December 1998, all of which was available at the end of the
second quarter of fiscal 1999, and other short-term (12-month) bank
facilities used principally for the issuance of letters of credit totaling
$149.5 million, $98.1 million of which was available at the end of the second
quarter of fiscal 1999. The Company expects to replace the competitive
advance and revolving credit facility, prior to the existing facility's
expiration date, with a five-year $125 million facility that will have
substantially similar or better terms. The Company's current ratio at the
end of the second quarter of fiscal 1999 was 3.1 to 1 compared to 3.3 to 1 at
the end of fiscal 1998. The Company's minimum operating lease commitments
remaining for fiscal 1999 are $53.3 million, and the present value of total
existing minimum operating lease commitments is $451.1 million. The Company
expects to fund these commitments from operating cash flow.
The Company had previously leased 21 store properties under operating
leases expiring June 15, 1998 from an unaffiliated third party (the
"Lessor"). Prior to the lease expiration date, the Lessor sold 14 of the
properties to another unaffiliated third party and seven of the properties to
the Company. The Company recognized a gain of $2.7 million due to the
relinquishment of options covering the 14 store properties and paid $6.7
million for the seven stores acquired.
The Company continues to guarantee certain nursery store leases of Wolfe
Nursery, Inc. ("Wolfe"), a subsidiary of Sunbelt Nursery Group, Inc
("Sunbelt"). In April 1998, Sunbelt initiated bankruptcy proceedings and all
of the leases were rejected by Wolfe in these proceedings. During the second
quarter of fiscal 1999, the Company settled some of the nursery store lease
guarantees within previously established accrued amounts. The remaining
lease guarantees totaled $1.2 million at the end of the second quarter of
fiscal 1999. The Company believes it has accrued sufficient amounts to cover
its obligations under the remaining store lease guarantees. Any cash
payments to satisfy these guarantees are expected to be funded through
working capital and operations.
In April 1998, the Board of Directors approved the purchase of up to 4.5
million ("split-adjusted") shares of the Company's outstanding common stock.
These purchases were completed as of September 23, 1998. In September 1998,
the Board of Directors authorized the purchase of up to an additional five
million shares. Additional purchases of common stock will be made through
open market or private transactions from time to time depending on prevailing
market conditions and the Company's available cash.
During the first six months of fiscal 1999, the Company repurchased
3,284,100 ("split-adjusted") shares of its common stock in open market
transactions for $51.9 million at an average split-adjusted price of $15.80
per share. In addition, approximately 148,600 ("split-adjusted") shares of
common stock were acquired as payment for the exercise of employee stock
options. As of September 30, 1998, the Company has repurchased during fiscal
1999 4,739,200 ("split-adjusted") shares in open market transactions for
$65.8 million at an average split-adjusted price of $13.88.
In the first six months of fiscal 1999, the Company paid cash dividends
aggregating $.06 per share (adjusted for the three for two stock split
distributed July 29, 1998) and has subsequently declared a cash dividend of
$.03 per share payable on November 24, 1998 to shareholders of record on
November 10, 1998. The Company currently expects to continue to pay cash
dividends in fiscal 1999 but to retain most of its future earnings for
expansion of the Company's business.
Impact of Year 2000 Issues
The Company has a comprehensive plan to address the risks associated
with the Year 2000 issue, which arises when computers or embedded computer
chips are unable to distinguish the proper century associated with a two-
digit year in a date. The Company's Year 2000 project has been divided into
five phases: 1) awareness, 2) assessment, 3) renovation, 4) validation and
5) implementation. The awareness phase is complete, and assessment of the
Company's internal hardware and software is essentially complete. The
Company's systems are in various stages of the remaining three phases; some
of the systems have completed the implementation phase and are running in
production but will be included in further testing efforts.
Assessment of the risks associated with vendors and third party service
providers' failure to remediate their own Year 2000 issues is in progress and
will continue throughout the duration of the project. If the Company's
internal systems are not remediated properly or if necessary modifications
and conversions by other companies on whose systems some of the Company's
business processes rely are not completed on time, the Year 2000 issue could
have an adverse effect on the Company's operations. The areas of greatest
risk include communications systems and elements of the merchandise supply
chain, including procurement, transportation and import activities. The
Company's strategy includes development of contingency plans for critical
business processes in the event of a compliance failure on the part of the
Company or any of its business partners.
The Company intends to continue to rely primarily on internal resources
for renovation and validation of its computer systems, with support from
consultants and contractors. Costs incurred since 1995 for Year 2000
assessment and remediation have totaled approximately $1 million, the
majority of which consisted of normal salaries paid to existing employees;
such costs were consistent with the Company's operating budgets and have not
had a material effect on the results of operations in any period, on
liquidity or financial position, or on other technology projects. The
Company also accelerated approximately $10 million in planned capital
purchases as a result of Year 2000 issues. Remaining remediation costs are
not expected to exceed $6 million over the next six quarters, approximately
35% of which represents ongoing budgeted salaries paid to existing employees.
Significant utilization of outside resources beyond what is included in the
Company's project plan, although not expected, could cause remediation costs
to increase above these estimates. The Company's plan provides for internal
compliance of all significant systems by mid-1999.
The Company expects to fund all expenditures related to its Year 2000
readiness initiatives through cash flow from operations. Such expenditures
are not expected to have an adverse effect on other operating or investment
plans.
Impact of Inflation
Inflation has not had a significant impact on the operations of the
Company.
PART II
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Item 6. Exhibits and Reports on Form 8-K.
--------------------------------
(a) Exhibits See Exhibit Index.
(b) Reports on Form 8-K None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PIER 1 IMPORTS, INC. (Registrant)
Date: October 13, 1998 By: /s/ Marvin J. Girouard
---------------- ----------------------------------------
Marvin J. Girouard, President
and Chief Executive Officer
(Principal Executive Officer)
Date: October 13, 1998 By: /s/ Stephen F. Mangum
---------------- ----------------------------------------
Stephen F. Mangum, Senior Vice President
and Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)
EXHIBIT INDEX
Exhibit
No. Description
- ------- -----------
27 Financial Data Schedule for Six-Month Period Ended August 29,
1998