Daily News
From Home Furnishing Business
Pier 1 Reports $4.1 Million 2Q Loss As Sales Fall 6.7%
September 29,
2016 by Jane Chero in Financial Reports, Industry 
Weak store traffic drove Pier 1 Imports (PIR) to a net loss of $4.1 million in the quarter ended Aug. 27 as sales tumbled 6.7%.
The retailer said traffic was especially slow in July, but picked up slightly in August and early September.
The most recent quarter’s loss, which equals 5 cents per share, compares with net income of $3.2 million or 4 cents per share in the same quarter last year.
Sales totaled $405.8 million, down from $435 million in the comparable quarter. The company said e-commerce accounted for 20% of net sales in the quarter, but company comparable sales, which include e-commerce and brick-and-mortar stores, decreased 4.3%.
“To drive our business, we have many initiatives currently underway which include our return to television advertising; merchandise refreshes, including the arrival of new and fall seasonal goods; new floor sets; gift registry introduction; full implementation of our multi-tender loyalty program; and an effective and balanced promotional plan,” said Alex Smith, president and CEO.
“With our omni-channel model in place, we are confident in the programs we have underway to help drive sales, improve our supply chain efficiency, optimize our real estate portfolio and further reduce costs, which we believe will lead to greater value creation for our shareholders.”
The retailer has closed six store and opened two since the start of the year, and Smith said 15 to 20 locations will be shuttered by the end of the fiscal year in February. The retailer had 1,023 stores as of Aug. 27.
For the six months ended Aug. 27, sales fell 5.5% to $824.2 million.
The six-month net loss was $10.1 million or 12 cents per share. That compares with net income of $10 million or 12 cents per share in the first half of the previous fiscal year.
The company said it is projecting a sales decline of 4% to 6% for the full fiscal year and earnings per share of 16 cents to 24 cents.
Both estimates are below projections issued in June, when the company projected a sales decline of 1% to 3%, and earnings per share of 32 cents to 40 cents.
The new earnings figures include about $10 million in costs related to the departure of Smith, who earlier this month announced he would resign in December.