Pier 1 sees Q3 comp fall, loss up to $20 million
November 18, 2008,
Fort Worth, Texas – Home furnishings specialty retailer Pier 1 Imports yesterday gave advance, and mainly negative, guidance on its third-quarter sales and operating profit.
“Merchandise margins are expected to be approximately 52.5%,” the company said, referring to a measure less often used by retailers than average gross margin. “EBITDA before special charges is currently forecasted to be negative $16 - $20 million.”
President and ceo Alex Smith offered some detail, noting that while store traffic was down 10% year-to-year in October, “Customers who are visiting our stores continue to respond well and we see meaningful improvements in both conversion rate and units per transaction. These increases are offset by the fact customers primarily shopped for 'small treats,' such as Halloween and holiday decor, and smaller home furnishings and furniture purchases, resulting in a lower average ticket.”
Pier 1 issued the guidance at this time to coincide with an analyst and shareholder store tour. The company will report third-quarter results on Dec. 18.
Related Content By Author
1200 Suppliers are Ready for You at Intertextile Shanghai
Home & Textiles Today eDaily
Most Viewed Articles
See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.