Pier 1 Same-Store Sales Drop 6.6 Percent

May 31, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on June 2006 Specialty retailer Pier 1 reported a 6.6 percent decline in same-store sales for the four-week period ended May 27.

Sales for the four-week period was down 4.3 percent to $120.9 million compared to $126.3 million during the same period last year.

First quarter and year-to-date sales totaled $376 million, a 3.6 percent from $390 million last year. The retailer reiterated first quarter guidance of $0.24 to $0.28 loss per share and plans to report first quarter results June 15.

“We experienced better customer traffic and sales trends during the 10 days following May 15th, when we first mailed our Pier 1 summer catalog,” said Marvin J. Girouard, Pier 1’s chairman and chief executive officer. “In addition, average ticket sales per transaction for the month were positive. However, Memorial Day’s weekend business was disappointing.

“We continue to carefully monitor and control inventory levels as well as merchandise margins and expenses,” he said. “Inventories are expected to be down at least 10 percent by the end of the first quarter versus a year ago, as we continue to refine and reposition our merchandise mix.”