Pier 1 Nets $7.7 Million for 1Q

June 16, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on June 17, 2010 Specialty home furnishings retailer Pier 1 Imports  (NYSE: PIR) reported net income of $7.7 million for the first quarter ended May 29, compared to net income of $29.3 million during the same quarter last year.

Last year's income included a $47.8 million gain on the repurchase of debt and a $10 million litigation recovery.

Net sales for the quarter were $306.3 million, compared to $281.1 million during the same quarter last year.

The retailer's operating income was $8.3 million, a $35 million improvement from an operating loss of $26.7 million during the first quarter of last year. Pier 1 said increases in sales and merchandise margins teamed with well-controlled expenses resulted in the company posting an operating income for the first time in six years.

"We are delighted that for the first time in six years we have achieved first quarter operating income," said Alex Smith, president and chief executive officer. "Store traffic, conversion rate and average ticket all increased during the quarter€”our customers are clearly enjoying our merchandise, our stores and our customer service. We experienced strong performance in all merchandise divisions and all areas of the country. Our confidence level is high and we know how to keep the momentum going€”continuing to rebuild our profitability one SKU and one customer at a time."

Comparable store sales during the quarter increased 14.3 percent compared to a comparable store sales decline of 7.5 percent last year. The sales increase for the quarter was primarily the result of an increase in store traffic, conversion rate and average ticket.

Pier 1 has posted the entire press release on its Web site.