Pier 1 posts $73.1 million quarterly loss
One-time charges, bigger operating loss to blame
Clint Engel -- Furniture Today, September 14, 2006
FORT WORTH, Texas — Pier 1 Imports posted a $73.1 million net loss in its fiscal second quarter ended Aug. 26 as the retailer struggled with soft sales even after major shifts in its merchandising strategy.
The loss included nearly $38 million in unusual charges for an accounting change and other one-time events.
Without the charges, the home furnishings specialist said it would have posted a loss of $29.3 million or 34 cent per share, compared with a loss of $6.4 million or 7 cents per share from continuing operations in the same period a year ago.
Wall Street analysts on average were looking for a loss of 28 cents per share, according to news reports.
Sales declined 12.5% from the comparable period a year ago to $370.7 million, while same-store sales fell 14.8%.
“Although we were well under way with our turnaround strategy, we are disappointed to report a significant loss for the second quarter,” said Pier 1 Chairman and CEO Marvin Girouard.
Girouard said business was soft in June and July, then picked up slightly in August, but it wasn’t enough to overcome the company’s fixed costs.
“We expect to do better over the next few months through the critical fall and holiday selling season,” he said, noting the dramatic changes in store presentations and assortment that the Top 100 company has made to attract new customers.
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Pier 1 posts $73.1M loss
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