Pier 1 Q2 Sales Inch Up, But Net Loss Grows

Second quarter net sales at Pier 1 Imports were up slightly as the company’s e-commerce sales continued to grow as a percentage of total sales.

For the quarter ended August 26, total company sales were $407.6 million, up slightly from sales of $405.8 million in the comparable quarter the previous year. Comparable sales for the quarter were up 1.8%. Net loss for the second quarter was $7.8 million, or ($0.10) per share, compared to net loss of $4.1 million, or ($0.05) per share, in the year-ago quarter.

“We achieved solid top-line performance and year-over-year improvement in merchandise margin in a challenging retail environment,” said Alasdair James, president and CEO of Pier 1. “However, this level of performance does not reflect our expectations for the business. We believe there is far greater potential ahead to optimize the Pier 1 Imports brand and improve our long-term profitability.”

In the second quarter, e-commerce represented approximately 27% of net sales as compared to approximately 20% of net sales in the second quarter of fiscal 2017. Taking into account e-commerce orders placed in or picked up in-store, approximately 90% of the company’s second quarter fiscal 2018 net sales directly touched a store, Pier 1 officials said.

Net sales for the six months ended August 26 were $817.1 million, a decrease of 0.9% from the same period last year. Comparable sales for the six months increased 0.7%. Net loss for the first half of the year was $10.8 million, or ($0.13) per share, compared to $10.1 million, or ($0.12) per share, in the year-ago period.