FORT WORTH, Texas–Pier 1 Imports posted third-quarter sales and net declines as it faces delisting from the New York Stock Exchange.
But despite the results being “a great disappointment,” the chain is seeing improvement in traffic and profit margins, said Alex Smith, president and chief executive officer, during a conference call with analysts.
For the third quarter ended Nov. 29, sales dropped to $300.9 million from $374 million in the year-ago quarter. Comparable-store sales sank 17.8 percent.
The retailer’s net loss more than tripled to $36.9 million from $10.0 million in the year-ago period.
The “miserable recession” has hurt Pier 1’s turnaround timetable, Smith said. Management expected to return Pier 1 to profitability in fiscal 2010.
“Some things are worth fighting for, and a healthy and successful Pier 1 Imports is one of them,” Smith said.
Merchandising tests, such as the addition of kitchenware and photo frames, have worked well and will be expanded.
The addition of food has also paid off and will be rolled out to more stores next year, Smith said.
What’s more, the retailer just began testing wine in five stores and will also expand that test next year.
Smith said a “significant percentage” of the merchandise introduced this fall “hit the bull’s-eye right in the middle,” he said. “This is not a situation we’ve been in for a while.”
The retailer’s stock price has fallen below listing standards for the NYSE. Pier 1’s board of directors is negotiating with the NYSE to maintain its listing, executives said.