Pier 1 sales drop for Q2

Despite strong digital gains, Pier 1 is feeling the effect of soft store sales during the summer.



Net sales for the second quarter for fiscal 2017, ended Aug. 27, 2016, decreased 6.7% to $405.8 million, compared to $435.0 million for the same period last year. Comparable store sales for the quarter decreased 4.3%.



Gross profit also fell during the second quarter, hitting $145.0 million, compared to $154.6 million in the second quarter of fiscal 2016.



“Our top-line results reflect soft store traffic levels throughout the second quarter, most notably in July,” said Alex Smith, the chain’s president and CEO.



“As we moved through August and into September, we have seen improvement in our sales and merchandise margin trends,” he said. “However, we remain cautious regarding our sales outlook given that it’s early in the quarter, and our biggest selling season is still ahead of us.”



E-commerce sales are on the rise however, accounting for 20% of the quarter’s net sales, compared to approximately 17% of net sales in the second quarter of fiscal 2016. Approximately 90% of Pier 1’s e-commerce orders during the second quarter directly touched a store, as they were either placed with an associate or picked up in-store.



“With our omnichannel model in place, we are confident in the programs we have underway to help drive sales, improve our supply chain efficiency, optimize our real estate portfolio and further reduce costs, will lead to greater value,” Smith said.