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Pier 1 sales decline 10.9%

By Gary Evans -- Furniture Today, April 13, 2009

FORT WORTH, Texas — Pier 1 Imports said today it had a net loss of $29.4 million or 33 cents per share in its fiscal fourth quarter, versus a profit of $14 million or 16 cents per share for the same period last year.

Sales for the quarter ended Feb. 28 declined 10.9% to $389 million. The Fort Worth-based retailer said the decline in the quarter's sales was attributable to the economic environment, a reduction in store count, and a decline in same-store sales of 9.7%.

In addition, the company cited the weakening of the Canadian dollar against the U.S. dollar.

The company, which had reported preliminary earnings in late March, said same-store sales declined 9.2% for the fiscal year, during which 25 of 1,092 Pier 1 stores in North America were closed.

The company had a net loss of $129.3 million or $1.45 per share for the fiscal year, compared with a loss of $96 million or $1.09 per share in fiscal 2008. Sales declined 12.6% to $1.3 billion.

“Fiscal 2009 was not the year we anticipated it would be, but despite all the challenges faced as a result of the economic environment, we were able to end the year with clean inventory levels and a strong cash position,” said Alex Smith, president and CEO.

“To begin fiscal 2010, March comparable stores sales were in line with our internal budget and declined 9.7%. Merchandise margins were ahead of plan as they returned to approximately 52% (versus 44.3% for the fourth quarter, 48.1% for the year).”

Smith added that the company is positioned “to emerge on the other side of this recession a stronger, leaner and more efficient Pier 1 Imports.”

Pier 1 said it reduced its inventory by $96 million during the year, from $412 million to $316 million, by adjusting the timing and levels of inventory purchases in its supply chain.

The company said cash and non-cash costs relating to store closures this fiscal year will be about $6 million, of which $4 million will be incurred during the first quarter. Pier 1 said it expects to close no more than 80 locations this year.

Pier 1 Imports
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.

Quarter ended 2/28	2009	2008	Change
Sales	$389,257,000	$436,710,000	(10.9%)
Operating income	(19,889,000)	24,336,000	—
Net income	(29,418,000)	13,738,000	—
Earnings per share	(0.33)	0.16	—
Year ended 2/28	2009	2008	Change
Sales	$1,320,677,000	$1,511,832,000	(12.6%)
Operating income	(90,007,000)	(48,346,000)	—
Net income	(129,253,000)	(96,011,000)	—
Earnings per share	(1.45)	(1.09)	—

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Pier 1 Imports posts $29 million loss in quarter

Apr 7, 2009

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