Pier 1 Same-Store Sales Drop

March 1, 2006  by in UnCategorized   

By Home Furnishings Business in on March 2006 Fort Worth, Texas-based Pier 1 Imports reported Thursday that sales for the four-week period ended Feb. 25 of about $110 million, a 6.5 percent decrease from $117 million during the same month last year.

Same-store sales for the period declined 10.8 percent.

Marvin J. Girouard, Pier 1's chairman and chief executive officer, called the month "transitional", as the company was just completing a clearance sale.

"During February, inventories were lean most of the month as stores prepared for new merchandise arrivals," he said. "Although February's average ticket sales were higher versus the year-ago period, customer traffic was below last year, especially in periods of inclement weather during the month."

Sales for the fourth quarter were $530 million, up slightly from last year's $526 million. Comparable store sales declined 3.2 percent for the quarter. Year-to-date sales for the twelve-month period of $1.85 billion were down 2.5 percent from $1.89 billion last year, and comparable store sales declined 7.2 percent.

During this month and through the first quarter, Pier 1 will be rolling out its new merchandise dubbed modern craftsman.

"Pier 1's merchandise has evolved from a traditional global motif to a more streamlined and contemporary style and design, with distinctive global influences," Girouard said. "This new merchandise has simpler lines, architectural shapes, and in many cases larger-scale proportions with sophisticated, fashion-forward color palettes. We believe that the new Pier 1 modern craftsman designs make our merchandise more relevant to today's consumers."

Pier 1's support of the new product includes a marketing program with new national television commercials, a spring catalog mailing and magazine advertising.

Fourth quarter and fiscal 2006 year-end results and March sales will be reported April 6, and the company will conduct a conference call to discuss results.