Pier 1 bullet gets harder to bite
September 14, 2006-- Home Textiles Today,
Fort Worth, Texas – Hit by a fistful of one-time charges, and with sales sliding, margins thinning and costs and interest expense both soaring higher, Pier 1 Imports danced closer to the edge of the tar pit, recording a second-quarter loss of $73.1 million, more than seven times the size of a year-ago loss of $10.2 million.
Unable to find the merchandise mix or presentation to draw consumers through its doors, sales remained in freefall, falling 12.5% to $370.7 million, an unnerving shortfall for the quarter of $53.0 million from a year-ago level of $423.7 million.
As bad as that sounds, it gets even worse, as same-store sales dropped by 14.8% for the quarter, worsening steadily through the first six months of the year. By contrast, six-month comps fell at a slower pace of 10.9%.
Even pulling out all the one-time charges, the retailer still lost $29.3 million from continuing operations, almost five times the size of the prior-year loss of $6.4 million.