Pier 1 reports smaller loss in 2Q
By Larry Thomas -- Furniture Today, September 28, 2009
FORT WORTH, Texas — Retailer Pier 1 Imports reported a net loss of $15.8 million for the quarter ended Aug. 29 — roughly half the loss it recorded in the same period last year — as sales fell 10.6%.
The company said merchandise margins improved and inventories were lowered during the quarter, and a variety of other costs were reduced.
Same-store sales fell 7.6%.
“We were very pleased with what we were able to accomplish in the second (fiscal) quarter, as our sales, merchandise margin and operating results continued to exceed our internal budgets,” said Alex Smith, president and CEO.
The most recent quarter's loss, which equals 17 cents per share, compares with a loss of $30.2 million or 34 cents per share in the quarter ended Aug. 30, 2008.
Sales of $286.7 million were down from $320.5 million in the same period last year.
Smith said 31 Pier 1 stores have closed this year, leaving the company with 1,061 locations at the end of the quarter. Another 19 locations will be closed early next year.
For the six months ended Aug. 29, sales were down 9.9% to $567.8 million.
Due to a one-time gain of nearly $50 million from the retirement of debt earlier this year, the company had net income of $13.5 million or 15 cents per share for the six-month period. In the first six months of the previous fiscal year, Pier 1 had a net loss of $63 million or 71 cents per share.
Smith said he is optimistic about the fall and holiday selling seasons and said the company is recording positive same-store sales thus far in September.
“Customers are responding positively to our fall merchandise,” he said. “Our stores look really good and we are looking forward to the holiday transition, which will begin in October.”
Pier 1 Imports
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| Quarter ended 8/29 | 2009 | 2008 | Change |
| (a) Includes pretax gains on the retirement of debt of $1.8 million in the quarter and $49.7 million in the six months. |
|||
| Sales | $286,674,000 | $320,494,000 | (10.6%) |
| Operating income | (9,452,000) | (20,908,000) | — |
| Net income (a) | (15,780,000) | (30,156,000) | — |
| Earnings per share | (0.17) | (0.34) | — |
| 6 months ended 8/29 | 2009 | 2008 | Change |
| Sales | $567,803,000 | $630,514,000 | (9.9%) |
| Operating income | (30,196,000) | (42,670,000) | — |
| Net income (a) | 13,534,000 | (62,980,000) | — |
| Earnings per share | 0.15 | (0.71) | — |
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Pier 1 reports smaller loss in latest quarter
Sep 17, 2009 -
14.3% same-store sales gain lifts Pier 1 to profit
Jun 17, 2010 -
Pier 1 Profit Down 45.9%
Dec 23, 2010 -
Pier 1 sales decline 13% in 1Q
Jun 22, 2008 -
Pier 1 loses $36.9M
Dec 21, 2008
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