Pier 1 loses $56.4 million
By Clint Engel -- Furniture Today, June 24, 2007
Fort Worth, Texas — Pier 1 Imports said it lost $56.4 million in its fiscal first quarter, more than double the loss for the same period a year ago, and said it will close 40 more stores than announced earlier as part of a restructuring.
Among the stores to close are all 33 Pier 1 Kids stores, which will shut down by Oct. 31, and all 24 clearance centers, which will close by July 31. In addition, the company will exit its e-commerce and catalog businesses, although it will retain the pier1.com Web site for marketing purposes.
The net loss for the period ended June 2 compares with a $23.2 million net loss for the first quarter a year ago. Sales were down 5.2% to $356.4 million and same-store sales dipped 5.4%.
Officials at the Top 100 company, which has more than 1,000 stores, said it plans on closing about 100 stores this year rather than the 60 announced earlier.
"We need to focus 100% of our attention on our core business, the Pier 1 Imports stores," said Alex Smith, president and CEO.
It expects the business exits will incur expenses of about $10 million beginning in the fiscal second quarter.
In the first quarter, the retailer said its merchandise margins declined to 45.5%, compared with 53.8% last year, a result of aggressive liquidation of its modern craftsman merchandise.
| Pier 1 Imports | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/2 | 2007 | 2006 | Change |
| (a) The 2006 quarter includes income tax benefit of $11.7 million and a $407,000 net loss from discontinued operations. |
|||
| Sales | $356,375,000 | $376,092,000 | (5.2%) |
| Operating income | (44,946,000) | (20,331,000) | — |
| Net income (a) | (56,378,000) | (23,172,000) | — |
| Earnings per share | (0.64) | (0.27) | — |
-
Pier 1 loses $56.4 million in quarter
Jun 21, 2007 -
Pier 1 sales decline 10.9%
Apr 13, 2009 -
Pier 1 loss cut; sales off 7%
Sep 23, 2007 -
Pier 1 loses $36.9M
Dec 21, 2008 -
Pier 1 sales decline 13% in 1Q
Jun 22, 2008
VIEW ALL GALLERIES
