Havertys, Pier 1 same-store sales rise; Bombay's drops
By Furniture Today Staff -- Furniture Today, April 12, 2004
ATLANTA — Havertys and Pier 1 Imports chalked up modest gains in same-store sales in March, while The Bombay Company reported a 6% decline.
Havertys also said its first store in Ohio will be in Cincinnati and will open later this year. The Atlanta-based Top 100 chain had said earlier it planned to enter Ohio, its 16th state.
Havertys said same-store sales increased 3.1% in March and 4% for the first quarter. Total sales rose 8.3% in March and 8.5% for the first quarter.
"Our comparable-store sales were positive each month of the first quarter," said Clarence Smith, president and CEO of the 113-store company. "We believe the overall demand for furniture was not as strong as had been widely anticipated, and may be reflective of the drop in consumer confidence since the beginning of the year."
He added that sales of the private-label Havertys Collection, largely imported merchandise, more than doubled in the first quarter, as expected, to 31% of total sales.
Smith said the Cincinnati store would open in late 2004. He said the market offers "great opportunities" but did not say whether more Ohio stores are planned.
Fort Worth, Texas-based Pier 1 said same-store sales were up 3.5% for the five-week period ended April 3, while total sales increased 12.3%. Marvin Girouard, chairman and CEO, said the company was pleased with March results and optimistic about growth trends in traffic and average tickets.
"Inventories are on plan, and we continue to introduce more new merchandise into stores. April comp sales are projected to be in a range of 3% to 5%. We believe our new television advertising and improved newspaper inserts are creating additional awareness and interest in Pier 1," he said.
Bombay, also based in Fort Worth, said the March same-store sales drop of 6% stemmed in part from "one of the most difficult comparisons of the year, as same-store sales increased by 30% last year," according to James Carreker, chairman and CEO. He said April and May comparisons should be easier.
The chain's total sales rose 6% for the March period.
"New stores are generally performing as expected and we are pleased with the continued growth of our Internet business," Carreker said. "Offmall comparable stores performed better than mall comparable stores as a group."
He added that because of softer-than-expected sales, Bombay estimates its first-quarter loss will be at the high end of the previously indicated range of 8 cents to 11 cents per share.
The fiscal first quarter runs through April.
In other sales news, discounter Big Lots said furniture figured into its gains of 6.7% in same-store sales and 12.2% in total business, to $394.9 million, for the five weeks ended April 3.
"Furniture sales accelerated as planned from February to March as we continue to improve our assortment and in-stock levels, while expanding the offering to more stores," said Michael Potter, Big Lots chairman and CEO.
"We also were pleased with the beginning of what we believe will be an improving trend in our home decorative business as our merchandising initiatives in this category are starting to positively impact the store," he said.
| Retailers report March revenues Dollar amounts in millions | |||
|---|---|---|---|
| Company | Sales | Change | Same-store change |
| 1. For the five weeks ended April 3, 2004 | |||
| Pier 1¹ | $168.5 | 12.3% | 3.5% |
| Havertys | $63.0 | 8.3% | 3.1% |
| Bombay¹ | $50.7 | 6.0% | -6.0% |
