From Home Furnishing Business
Pier 1 Reports Wider Q2 Loss as Sales Rise 0.4%
Pier 1 Imports (NYSE: PIR) said sales edged up 0.4% to $407.6 million in the quarter ended Aug. 26, but the retailer’s net loss nearly doubled from the same quarter last year.
The loss in the most recent quarter totaled $7.82 million or 10 cents per share. In last year’s second fiscal quarter, the loss was $4.07 million or 5 cents per share.
Company comparable sales were up 1.8%, and the retailer said e-commerce accounted for 27% of total sales. Taking into account e-commerce orders that were either placed in-store or picked up at a store, Pier 1 said about 90% of sales in the most recent quarter “directly touched a store.”
“We achieved solid top-line performance and year-over-year improvement in merchandise margin in a challenging retail environment,” said Alasdair James, president and CEO. “However, this level of performance does not reflect our expectations for the business. We believe there is far greater potential ahead to optimize the Pier 1 Imports brand and improve our long-term profitability.”
For the six months ended Aug. 26, sales fell 0.8% to $817.1 million. The six-month net loss totaled $10.81 million or 13 cents per share. That was slightly above the loss for the first half of the previous year, which totaled $10.09 million or 12 cents per share.
As a result of the weak second quarter, and the expected impact of hurricanes Harvey and Irma on the current quarter’s results, the company cut its sales and earnings projections for the fiscal year.
The company now says full-year sales will be flat to 2% above the previous year – down from a June projection of an increase of 1.5% to 2.5%.
Earnings per share are now projected at 31 cents to 41 cents, which is down from June projection of 46 cents to 52 cents.