Pier 1 cuts 2Q loss, focuses on turnaround

FORT WORTH, Texas Pier 1 Imports reported a net loss of $30.2 million, or 34 cents per share, for the second quarter ended Aug. 30, versus $43.4 million, or 49 cents per share, reported for the same period last year, a 31% improvement.

Alex Smith, the company’s president and ceo, said, “As I said in our announcement earlier this month, our second quarter was not what we had hoped in terms of merchandise margin, but we took the necessary steps to clear seasonal inventory and to prepare our stores for the arrival of our fall and harvest merchandise. As a result of these efforts, we began our third quarter with clean inventory and early September results show margins returning to levels that are more in line with our expectations.

Total sales for the second fiscal quarter declined to $320 million from $345 million in the year-ago quarter primarily as the result of decreased store count and the elimination of ancillary businesses. Comparable-store sales for the quarter declined 1.7%.

Pier 1 said that due to the difficulties and uncertainties surrounding the macroeconomic environment, it will not provide guidance for the remainder of this fiscal year and withdraws the previous guidance provided.