Pier 1 posts 3Q loss
By Larry Thomas -- Furniture Today, December 18, 2005
Fort Worth, Texas — Pier 1 Imports reported its third consecutive quarterly loss last week as the Top 100 specialty retailer's third-quarter sales dropped 2.4%.
The net loss came to $7.2 million, or 8 cents per share, in the quarter ended Nov. 26. That compares with net income of $19.5 million, or 22 cents per share, in last year's third quarter. Sales in the latest quarter totaled $476.2 million, down from $487.7 million in the same period a year ago.
Pier 1 said same-store sales dropped 6.5% in the quarter, and admitted that earlier predictions of increased same-store sales for December "now do not look achievable due to unpredictable sales trends since the Thanksgiving weekend and the heavier promotional environment."
In the nine months, sales dropped 3.8% to $1.3 billion, with a net loss of $29.8 million, or 34 cents per share. In the first nine months last year, the company had net income of $41.7 million, or 47 cents per share.
"Although we are disappointed by overall third-quarter results, the national distribution of two Pier 1 catalogs this fall improved traffic trends over that period," said Chairman and CEO Marvin Girouard. "We believe catalogs can create a positive brand image for Pier 1 merchandise and have a longer impact on customers than newspaper circulars."
He hopes sales will get a boost when new merchandise with more modern designs begins arriving in stores in early spring. The merchandise "will offer customers ... simple, clean silhouettes, while maintaining Pier 1's brand position (of) relevant designs, better quality and value," Girouard said.
The new merchandise will be accompanied by enhanced displays that show many items in room settings, he said.
Pier 1 holds the No. 2 spot in Furniture/Today's latest ranking of Top 100 furniture stores, with 2004 sales of furniture, bedding and accessories at $1.4 billion, a 4.6% gain over 2003 sales.
| Pier 1 Imports | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 11/26 | 2005 | 2004 | Change |
| (a) Includes an $11.8 million income tax benefit. |
|||
| Sales | $476,243,000 | $487,729,000 | (2.4%) |
| Operating income | 11,058,000 | 45,312,000 | (75.6%) |
| Net income | (7,181,000) | 19,475,000 | — |
| Earnings per share | (0.08) | 0.22 | — |
| 9 months ended 11/26 | 2005 | 2004 | Change |
| Sales | $1,320,544,000 | $1,372,027,000 | (3.8%) |
| Operating income | 1,999,000 | 107,826,000 | (98.1%) |
| Net income | (a)(29,828,000) | 41,658,000 | — |
| Earnings per share | (0.34) | 0.47 | — |
-
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