Pier 1 reports $58.7 million quarterly loss
But loss excluding charges beats analysts’ estimates
By Furniture Today Staff -- Furniture Today, April 12, 2007
FORT WORTH, Texas — Pier 1 Imports said declining sales and a series of one-time charges, the largest of them to write down the value of clearance merchandise, led to a loss of $58.7 million or 67 cents per share in the fiscal fourth quarter, ended March 3.
Fourth-quarter sales were down 6.4% from the comparable period a year earlier to $473.7 million as same-store sales fell 11%.
Excluding the one-time charges, the specialty retailer said its net loss from continuing operations would have been 14 cents per share in the fourth quarter, compared with a 4 cent loss a year earlier. That performance was better than analysts expected, with those surveyed by Thomson Financial predicting a loss of 32 cents per share.
The fourth-quarter net loss of $58.7 million compares with a net loss of $7 million a year earlier. For the year, the loss was $227.2 million, versus a $27.5 million loss in fiscal 2006. The just-ended year’s loss included the effects of $114.1 million in one-time charges.
Pier 1 said it took the fourth-quarter inventory charge to write down the value of merchandise, mainly in the modern craftsman style. The company said it made a strategic decision to expedite the clearance of the goods by the end of the fiscal first quarter.
Sales for fiscal 2007 were down 8.6% from the previous year, to $1.6 billion, with comparable-store sales falling 11.3%.
Pier 1 also announced that it will no longer report sales each month, shifting instead to a quarterly reporting schedule.
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Pier 1 loses $58.7M in 4Q
Apr 29, 2007
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