Pier 1 Imports, Inc. PIR
Q3 2012 Earnings Call Transcript

Operator: Matt Nemer, Wells Fargo Securities.

Matt Nemer - Wells Fargo Securities: First, I wanted to ask about the early spring receipts of merchandise. As you flow goods to the stores sooner this year, what's the potential impact of that on merchandise margins?

Alexander W. Smith - President and CEO: Well, the answer to that is, it depends what percentage of our sales during January, February are full-priced versus clearance. I mean, our projections at the moment, Matt, are that our clearance percentage in the first two months of the year is going to be really very not significantly different from last year, maybe a little better. So, we do expect to do see a bigger percentage of our sales on full-priced. And I think, really the biggest impact of getting spring in early is going to be sort of really kick-starting the start of next fiscal year starting in March because we've always been a little bit – we've always done a great transition from summer into fall, but our transitions from January, February clearance into spring have always been a little scrappy. So, we do see some upside there.

Charles H. Turner - EVP and CFO: Matt, remember, this year's Chinese New Year is one of the earliest in the last probably 10, 15 years, so that's another reason we're bringing them all.

Matt Nemer - Wells Fargo Securities: And then secondly, on the administrative payroll line, is there – do we expect another step up in e-com related hiring versus sort of the bulk of and the next year that line becomes a little more flattish?

Alexander W. Smith - President and CEO: Well, I think what you're going to see is, by the way what we've decided to do is, as we move through the fourth quarter, where we're going to break out these incremental costs for you. So you can see what the underlying profitability would have been if we weren't launching the e-com business and then see the incremental costs on top of that. There is going to be a little more hiring in the first part of the year without doubt. Then as we start sort of trading in the second part of the – it will get a little bit of leverage from that, but then it won't be until we move into fiscal '14 that we're going to fully leveraged those extra costs.

Charles H. Turner - EVP and CFO: So Matt, I'd add from last year and like I said for the fourth quarter another $2 million to $3 million in the first and second.

Matt Nemer - Wells Fargo Securities: Then lastly, could you just give us an update on the POS rollout in terms of the timing of that and I guess any – along the same lines any costs that we should be thinking about?

Charles H. Turner - EVP and CFO: We're on plan with the rollout (Pier West). We're going to bring them in-house and probably have a text next summer and fall and then we will roll it out after the Christmas season because we don't want to have any dishevel or what have you. So, by this time next year we will start rolling it out and we'll keep you update as we go forward.

Operator: Brian Nagel, Oppenheimer.

Brian Nagel - Oppenheimer: Congratulations on another nice report. So, my first question is somewhat of a follow-up I think to Matt's question on the spending side and e-commerce. But as we think about as we approach the launch of Pier 1 to you, you've already articulated the – as you said, incremental investment you made on I guess personnel, but will there also be an uptick in marketing spend or will this be a – will there be more of kind of a shift within your marketing spend towards that e-commerce effort?