Pier 1 Imports Reports $32.8 Million Loss

June 18, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on June 2008 Pier 1 Imports reported a net loss of $32.8 million in its first quarter as total sales declined to $310 million from $356 million and comp-store sales declined 5.4 percent.

In an earnings release, executives at Pier 1, which launched a bid to acquire the Cost Plus World Market chain earlier this month, cited a number of positives, saying the loss was a 42 percent improvement over its $56.4 million loss in its year-ago first quarter. Officials said they expect to reach profitability for the year.

President and CEO Alex Smith said, “Throughout the quarter we continued to focus on our business priorities which are designed to return our company to profitability and beyond even in difficult times. ... While there is work yet to be done, we are well positioned and will remain focused on generating profitable sales. Our significantly increased conversion rates prove that customers continue to respond favorably to our improved assortments and the enhanced in-store shopping experience.”

He said comp-store sales comparisons were challenging in March and April as the company cleared out Modern Craftsman items and shifted marketing dollars to the second half of the year. The release said comp-store sales increased by 7.5 percent in May.

Earlier this week, officials at the 292-store Cost Plus World Market chain rejected Pier 1’s $81 million offer, saying it was ill-timed due to the current home furnishings market and took away from the efforts of Cost Plus to continue to improve.

Some financial analysts have said the buyout attempt by the 1,100-store Pier 1 chain runs the risk of hurting turnaround efforts at both chains.