Pier 1 reports $29.4M loss
By Larry Thomas -- Furniture Today, March 30, 2009
Fort Worth, Texas — Pier 1 Imports reported a net loss of $29.4 million in the quarter ended Feb. 28 as sales fell 10.9%.
According to preliminary financial results released by the company, same-store sales fell 9.7% in the quarter, during which the company closed 16 stores.
Pier 1 ended its fiscal year with 1,092 stores and said it plans to close no more than 80 locations during the current fiscal year.
The retailer recently hired a consulting firm to help negotiate rental reductions from many of its landlords, and said it already has reached tentative agreements to terminate the leases of 14 stores.
Pier 1 said it will incur about $4 million in one-time charges related to the lease terminations. About half that amount will be taken during the first quarter.
Preliminary fourth-quarter results show that sales were $389.2 million, compared with $436.7 million in the quarter ended March 1, 2008.
The most recent quarter's net loss, which equals 33 cents per share, compares with net income of $13.7 million or 16 cents per share in the fourth quarter of the previous fiscal year.
The retailer also announced that a foreign subsidiary has purchased $79 million of the company's convertible senior notes for $27 million. The transaction allows Pier 1 to reduce its outstanding debt by $79 million on a consolidated basis.
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