Pier 1 posts comps drop due to drop in store traffic

FORT WORTH, Texas Pier 1 Imports reported an 11.7% comparable-store sales decline for the five-week period ended Oct. 4, primarily the result of an 8% decline in traffic during the month of September.

"Given the unprecedented events in the financial markets over the past few weeks, we wanted to provide additional information concerning our performance," stated president and ceo Alex W. Smith. "As we previously indicated, our ability to improve our profitability for the rest of the fiscal year would be contingent on driving traffic levels that were at least neutral to last year. Clearly, growing consumer concerns and the effects of extreme weather took a toll on our September sales results. If we continue to experience traffic levels like those seen in recent weeks, we will not meet the current consensus for earnings expectations for the back half of the fiscal year ...

"As we head into the holiday season, we are confident that our diligent efforts to cut costs and improve efficiencies, coupled with our strong balance sheet, have us well-positioned to address the challenges presented during this period of consumer uncertainty and well into the future," continued Smith. "We will continue to focus on balancing profitable sales, merchandise margin dollars and inventory levels, and will adjust our tactics as necessary to meet the changing sales trends throughout the rest of the fiscal year."