3 retailers' July sales decline
By Janice Chamberlain -- Furniture Today, August 22, 2005
Atlanta — The Bombay Company, Pier 1 Imports and Haverty Furniture all reported declines in sales and same-store sales in July, with Havertys posting the largest declines of the three publicly traded retailers.
Full-line retailer Havertys, based here, recorded July sales of $66.6 million, off 5.5% from year-ago sales of $70.4 million. Same-store sales fell 8.8%. For the first seven months of 2005, sales came to $466.6 million, up 6% from the comparable 2004 period, and same-store sales grew 1.6%.
Havertys President and CEO Clarence Smith said, "Written orders in July were up 3.2% in total versus last year, with comparable stores off 1%. The July Fourth holiday weekend was disappointing, but written orders on a comp-store basis were modestly positive for the remainder of July.
"There was one less delivery day in July this year as compared to 2004, which impacted total sales by an estimated 4%," he said. "Comparable-store sales for July last year were up 9.9%, so the comparison was difficult."
Smith said same-store sales in August and September last year were down 4.1% and 8.4%, respectively, largely due to disruptions from four hurricanes that hit the South, making comparisons for the current and coming month much easier.
Fort Worth, Texas-based specialty retailers Pier 1 and Bombay recorded sales decreases of 3.1% and 3%, respectively, for the four weeks ended July 30. Same-store sales were off 3% at Bombay and 7.7% at Pier 1.
July sales were $134.6 million for Pier 1 and $33.6 million for Bombay.
At Pier 1, fiscal year-to-date sales for the five-month period ended July 30 slipped 3.8% to $715.6 million from $743.9 million in the comparable year-ago period. Same-store sales fell 9.3% in the latest five-month period.
Pier 1 Chairman and CEO Marvin Girouard said July same-store sales results were in line with expectations, due to a planned calendar shift in the company's back-to-school event.
"Throughout the month," said Girouard, "comp-store traffic levels remained below last year and average ticket purchases increased slightly versus the year-ago period.
"We continue to project second-quarter comp-store sales to decline in a range of mid-to high-single digits," he said. "Also, based on weaker merchandise margins resulting from promotional and clearance efforts this month, we expect to be at the low end of our previous guidance of 3 cents to minus 7 cents earnings (loss) per share for the second quarter."
Pier 1 plans to report second-quarter results Sept. 15.
Excluding amounts from Bailey Street Trading Co., sold in May, Bombay reported July total sales were up 1%, compared with year-earlier sales of $33.2 million. In its second quarter, the company said total revenues increased 4% to $128 million for the 13-week period ended July 30.
Excluding Bailey Street, revenues were up 5%. Same-store sales in the latest quarter increased 1%.
Total revenues at Bombay were up 1% to $250.1 million for the 26 weeks ended July 30, measured against year-earlier results of $246.1 million, with same-store sales slipping 2%. Excluding Bailey Street, revenues were up 2%.
Bombay Chairman and CEO James Carreker said, "After months of preparation, July saw the rollout of our new merchandising strategy, which features lifestyle-based, in-store displays.... Notwithstanding the new look, we significantly underestimated the impact of two key aspects of the second quarter."
The company didn't fully foresee the affect of the transition on sales and margins, with the sales of clearance merchandise and floor models higher than anticipated, he said.
Additionally, Bombay's direct sales (Internet, mail order and international) were much softer than expected, Carreker said.
| Retailers report July revenues | |||
|---|---|---|---|
| Dollar amounts in millions | |||
| Company | Sales | Change | Same-store change |
| 1. For the four weeks ended July 30. | |||
| Pier 1 Imports 1 | $134.6 | —3.1% | —7.7% |
| Havertys | 66.6 | —5.5 | —8.8 |
| The Bombay Company1 | 33.6 | —3.0 | —3.0 |
