Pier 1 2Q sales up 5.7%, profits drop 43.3%
By Furniture Today Staff -- Furniture Today, September 19, 2004
Fort Worth, Texas — Specialty retailer Pier 1 Imports posted sales of $452.3 million in its second quarter, up 5.7% from year-ago results of $427.8 million. Same-store sales declined 3% in the quarter ended Aug. 28.
Profits for the quarter plummeted 43.3% to $10.4 million from last year's $18.4 million. Earnings per share for the current quarter were 12 cents, compared with 20 cents for the comparable 2003 period.
Sales in the first six months were up 6.5% to $884.3 million from $830.5 million last year. Same-store sales were down 2.4%. First-half profits plunged 40.8% to $22.2 million from last year's $37.5 million.
Chairman and CEO Marvin Girouard said, "Although this has proven to be a difficult year for our company, we believe that the current initiatives in merchandising, marketing and stores have begun to take effect. This should result in improved sales and earnings performance as we progress through the second half of this year and into our next fiscal year.
"While we are operating in an environment of economic uncertainty, we believe that by offering customers unique merchandise at a value and providing outstanding customer service, we will drive traffic into our stores."
In a conference call with analysts, Girouard said September results so far have been slightly better than the company's earlier projections.
He noted that sales in the second quarter for the company's Cargokids stores rose 41%.
During the second quarter, Pier 1 opened 28 stores and closed 11, ending the period with 1,220 stores worldwide. It plans to open 40 stores in the third quarter and shutter 14.
In the fiscal year, Pier 1 expects to open 110 to 115 stores and close 40, for a net gain of 70 to 75 stores.
Looking ahead, Pier 1 said third-quarter sales are projected to increase 4% to 9%, with same-store sales in a range of minus 4% to flat, with earnings per share in a range of 28 cents to 35 cents for the three months ending Nov. 27. Earnings per share were 35 cents in the year-earlier period.
For the current fiscal year, earnings per share are projected in a range of $1.05 to $1.22, compared with $1.29 last year.
Through the rest of the year, Pier 1 expects to allocate most advertising dollars to newspapers, magazines and direct mail, including newspaper inserts and national magazine advertising, with e-commerce through Pier1.com.
The chain began searching for a new advertising agency in July, and expects to announce its choice in October.
| Quarter ended 8/28 | 2004 | 2003 | Change |
|---|---|---|---|
| Sales | $452,271,000 | $427,831,000 | 5.7% |
| Operating income | 30,435,000 | 41,387,000 | (26.5%) |
| Net income | 10,446,000 | 18,436,000 | (43.3%) |
| Earnings per share | 0.12 | 0.20 | (40.0%) |
| 6 months ended 8/28 | 2004 | 2003 | Change |
| Sales | $884,298,000 | $830,543,000 | 6.5% |
| Operating income | 62,514,000 | 83,806,000 | (25.4%) |
| Net income | 22,183,000 | 37,498,000 | (40.8%) |
| Earnings per share | 0.25 | 0.41 | (39.0%) |
-
Pier 1 sales decline 10.9%
Apr 13, 2009 -
Pier 1 sales decline 13% in 1Q
Jun 22, 2008 -
Pier 1 slumps in 2Q
Oct 2, 2005 -
Pier 1 posts 4Q loss
Apr 23, 2006 -
Pier 1 sales drop 6.1% in 1Q as chain posts loss
Jul 3, 2005
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
