Pier 1 Imports reports Q3 profit up

Fort Worth, Texas Pier 1 Imports returned to a profit in the third quarter due to increased sales, better traffic and fewer markdowns.

The company also said it will close fewer stores than expected after working out agreements with some landlords to lower rents.

Pier 1 made $38.8 million for the three months ended Nov. 28, compared with a loss of $36.9 million a year earlier.

Excluding a tax benefit and other items, profit was $2.1 million.

Sales grew 9% to $327.1 million from $300.9 million, with same-store sales surging 13.7%.

The company cut its inventory to $340 million during the quarter, down from $399 million last year. It also lowered selling, general and administrative expenses to $112 million from $115 million.

Pier 1 has shuttered 33 stores year to date and expects to close seven more in January and February. The 40 store total is 10 fewer stores than it anticipated closing due to the rental reduction deals worked out with landlords.