Bombay, Pier 1 sales diverge
Janice Chamberlain -- Furniture Today, June 20, 2005
Fort Worth, Texas — Specialty retailers The Bombay Company and Pier 1 Imports, both based here, went in different directions in May. Bombay, for the second consecutive month, said revenues and same-store sales increased compared with May of last year, while Pier 1 had declines in both measurements.
Bombay's sales in the four weeks ended May 28 were $42.5 million, up 13% over sales of $37.5 million a year ago. Same-store sales surged 10%. For the 17-week period ended May 28, revenue increased 2% to $164.6 million compared with $161.1 million in the comparable 2004 period. Same-store sales slipped 1% in the latest 17-week period.
Bombay Chairman and CEO James Carreker said, "We were pleased with the sales momentum of May, which saw a continuation of the trends that developed in April and an exceptionally strong Memorial weekend promotion.
"Softness in our Internet and catalog businesses, due in part to changes in the marketing and promotional strategy, brought the month's total revenues in line with expectations," he continued. "The sale of our wholesale business, Bailey Street, will affect our top-line revenues going forward. However, the simpler organizational structure and use of funds to migrate stores from mall to off-mall are important aspects of our annual plan."
At Pier 1, sales slid 2% to $130.9 million for the four-week period ended May 28, compared with $133.6 million in the same period last year. Same-store sales dropped 7.7% in the four weeks.
In its first quarter ended May 28, Pier 1 reported sales were down 6.1% to $405.7 million from $432 million in the comparable 2004 period. Same-store sales fell 12% in the latest quarter.
"Sales in May were disappointing, especially during the Mother's Day sales event" said Pier 1 Chairman and CEO Marvin Girouard. "We found that the slight improvement in customer traffic in late April did not continue into May. Despite slow traffic, average ticket per transaction increased over last year."
Due to weaker-than-projected sales and merchandise margins, Pier 1 now expects a first-quarter loss per share in the range of 13 cents to 15 cents. In the first quarter of 2004, Pier 1 reported earnings per share of 13 cents.
| Retailers report May revenues | |||
|---|---|---|---|
| Dollar amounts in millions | |||
| Company | Sales | Change | Same-store change |
| 1. For the four weeks ended May 28. Source: Retailers |
|||
| Pier 1 Imports1 | $130.9 | -2.0% | -7.7% |
| The Bombay Company1 | 42.5 | 13.0 | 10.0 |
