From Home Furnishing Business
Pier 1 4Q Income Slips
Lifestyle home furnishings retailer Pier 1 (NYSE: PIR) posted net income of $33.1 million for the fourth quarter ended Feb. 28 compared to net income of $42.6 million in the same quarter last year.
Net sales for the quarter were $543.6 million compared to net sales of $515.8 million in the same period last year.
Net income for the year dropped to $75.2 million compared to $107.5 million for the prior year. Net sales for the year were $1.87 billion compared to net sales of $1.77 billion in fiscal 2014.
“Our omni-channel transformation is largely complete and from a brand strength and customer facing perspective we could not be more pleased with the results,” said Alex Smith, president and CEO. “However, fiscal 2015 clearly did not turn out as we had originally budgeted and we are very disappointed with the result. Our job now is to use the strength of the Pier 1 Imports brand and our investments in it to improve our profitability.
“We are confident in the investments we have made which have allowed us not only to build a $200+ million e-Commerce channel in just two years, but also a platform to develop new growth vehicles and brands,” he said. “In the short term our focus is on improving the profitability of our Pier 1 Imports brand. We now have the ability to engage our customers more frequently – through broader product offerings, expanded customer service options, tailored merchandising and marketing strategies and aspirational brand positioning. Pier 1 Imports’ brand health and competitive positioning remain strong, our customer can shop however she chooses, and we have multiple paths to grow the business and drive improved profitability.”
The complete earnings release is available online.