Pier 1 earnings down 22.1% in 2Q
By Furniture Today Staff -- Furniture Today, September 23, 2001
Fort Worth, Texas — Pier 1 Imports posted a 22.1% drop in second-quarter profits and hinted it may ratchet back aggressive expansion plans if the slowdown continues.
Net income for the quarter ended Sept. 1 fell to $13.8 million, or 14 cents per share, from $17.7 million in the same period a year ago, in line with previous guidance from the home furnishings specialty retailer.
Total sales in its 916 stores worldwide increased 5.7% to $357.2 million, and same-store sales slipped 0.2%.
For the first half, net income was down 24.4% to $26.1 million from $34.6 million in the previous year. Sales increased 7.1% to $682.6 million and same-store sales rose 1.2%.
"As in the first quarter, our customers were shopping for value as we once again experienced higher promotional sales and lower average transactions," said Marvin Girouard, chairman and chief executive officer.
Pier 1 is watching its inventory, especially furniture, as consumers shy away from big-ticket purchases, he said.
The only furniture category expected to show a significant sales increase is home office.
The chain is on plan to open 100 stores by the end of the fiscal year and close 24, but is watching business conditions for next year. "If sales continue to soften, we want to be flexible with our store openings and be certain of a solid return on investment," Girouard said.
In the wake of the Sept. 11 terrorist attacks, he said it is premature to cut earnings estimates until traffic and sales patterns develop in the coming weeks.
The company did project a 5% to 7% decrease in same-store sales for September.
| Pier 1 Imports | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 9/1 | 2001 | 2000 | Change |
| Sales | $357,248,000 | $337,991,000 | 5.7% |
| Operating income | 32,405,000 | 38,840,000 | (16.6%) |
| Net income | 13,802,000 | 17,715,000 | (22.1%) |
| Earnings per share | 0.14 | 0.18 | (22.2%) |
| 6 months ended 9/1 | 2001 | 2000 | Change |
| Sales | $682,635,000 | $637,519,000 | 7.1% |
| Operating income | 62,822,000 | 76,175,000 | (17.5%) |
| Net income | 26,147,000 | 34,592,000 | (24.4%) |
| Earnings per share | 0.27 | 0.35 | (22.9%) |
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