Pier 1 Cuts Q1 Loss on Modest Sales Decline

June 29, 2017  by Larry Thomas in Economic News, Industry   

The loss in the most recent quarter – the first quarter of Pier 1’s fiscal year – compares with a loss of $6.02 million or 7 cents per share in the same quarter last year.

Sales fell 2.1% to $409.5 million. However, the retailer said e-commerce sales grew about 23% to $99.3 million, representing about 24% of net sales. In last year’s first quarter, e-commerce accounted for about 19% of net sales.

Company comparable sales were flat compared to the first quarter of the previous fiscal year.

“During the first quarter, our teams continued to make progress against our key initiatives around merchandising, marketing, supply chain, real estate and cost,” said Alasdair James, president and CEO. “Whilst we’ve shown operational improvement for several consecutive quarters, there is still much to be done to build the business to its full potential, significantly strengthen our profitability and increase shareholder value.”

The retailer opened one store and closed three during the quarter, ending with 1,106 stores as of May 27 – 11 fewer than it had at the end of last year’s first fiscal quarter.

James said the company plans to close a net of 20 to 25 stores by the end of the current fiscal year.

“Pier 1 Imports has a loyal customer base, productive store portfolio, large and growing e-Commerce presence and strong balance sheet. Looking ahead, we will be focused on uncovering additional opportunities to leverage these assets to broaden our customer reach, enhance our competitiveness and drive growth,” said James.

The company is projecting a sales gain of 1.5% to 2.5% for the current fiscal year, and is projecting a profit of 46 cents to 52 cents per share.