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September sales mixed

By Janice Chamberlain -- Furniture Today, October 9, 2005

Atlanta — September was a positive month for Haverty Furniture here, but the month wasn't as kind to specialty retailers The Bombay Company and Pier 1 Imports. Total sales and same-store sales were up at Havertys, while both declined at Bombay and Pier 1.

Cash registers at Havertys' 117 stores rang up sales of $67.1 million in September, up 9.3% over the $61.4 million recorded in September 2004. Same-store sales for the month increased 6.5%. Sales in the third quarter ended Sept. 30 were up 2.3% to $202 million from $197.4 million in 2004's third quarter, and same-store sales slipped 1% at the full-line retailer.

For the first nine months of 2005, Havertys reported sales of $602.1 million, up 6.1% over the comparable 2004 period. Same-store sales increased 2%.

President and CEO Clarence Smith said September written sales order activity also was up, but by a slightly lower percentage than its same-store sales gain of 6.5%. "We had expected larger increases given the significant impact on our prior year's results from the hurricane activity in Florida, our most productive region," he said.

Smith added he thought consumers remained reluctant to make big-ticket purchases.

Fort Worth, Texas-based Pier 1 reported sales of $162.2 million for the five weeks ended Oct. 1, a 7.7% decline from year-earlier results, with same-store sales falling 10.6%. Year-to-date sales since March were down 5% to slightly over $1 billion, and same-store sales decreased 9.9%.

Pier 1 Chairman and CEO Marvin Girouard said the September same-store sales decline was in line with company expectations, adding, "Customer traffic remained below last year for the month, average ticket sales were higher and conversion rates were slightly below the year-ago period.

"We are encouraged by the launch of our first national catalog and believe that our customers were pleased with the unique merchandise offerings shown in the catalog, including end-use visual presentations of new room ensembles," he continued. "After customers received the fall catalog, we experienced improvements in store traffic and average ticket."

Girouard said the company, which operates over a thousand U.S. stores, was discontinuing its annual October Friends and Family promotion, a 10-year-old event that significantly increased revenues in the month but decreased margins and depleted stores of new and unique merchandise immediately prior to the important November and December holiday selling period.

As a result of the change, Girouard estimated October same-store sales would decline in a range of 10% to 18%.

Pier 1 plans to distribute its holiday catalog in early November to an expanded list of potential customers and, for the first time, the company's Web site will feature the holiday catalog and home delivery of all merchandise, including furniture.

At Bombay, also based in Fort Worth, same-store sales for the five weeks ended Oct. 1 slipped 1.6%, with overall sales decreasing 3.5% at the specialty retailer. Revenues from non-store activity, including Internet, mail order, international and Bailey Street Trading Co., accounted for about 4% of revenues compared with about 11% for the same period in 2004. Bombay sold Bailey Street, its wholesale arm, in May.

For the 35-week period ended Oct. 1, revenues increased 2% to $336.4 million from $329.8 million in the comparable 2004 period, with same-store sales off 0.4%. Revenues from non-store activity were about 5% of total revenues in the latest period, compared with 10% in the year-earlier period.

Bombay Chairman and CEO James Carreker said, "Sales for the month were impacted by the devastation of hurricanes Katrina and Rita as well as rising fuel costs. Overall, for the month, those regions farthest from the hurricane were the least impacted. Canada, the West Coast and the Northeast all had positive or flat same-store sales for the month.

"Transactions and traffic were negatively affected by current events but somewhat offset by a strong increase in average ticket due to an increase in the sales of furniture and wall décor," he said.

Three Bombay stores were closed temporarily due to Hurricane Katrina. One reopened last week, with the others expected to open prior to the holiday selling season. The chain operates 495 stores.

Retailers report September sales
Dollar amounts in millions
Company	Sales	Change	Same-store change
1. For the five weeks ended Oct. 1.
Pier 1 Imports¹	$162.2	-7.7%	-10.6%
Haverty Furniture	67.1	9.3	6.5
The Bombay Company¹	46.7	-3.5	-1.6

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Sept. sales mixed for retailers

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