FORT WORTH, Texas–Pier 1 Imports trimmed its loss in the first quarter as it sets its sights on generating profitable sales.
For the first quarter ended May 31, Pier 1 narrowed its net loss to $32.8 million from $56.4 million in the year-ago period.
The retailer generated more gross profit dollars with less sales.
Due to a lower store count and the elimination of ancillary businesses, such as e-commerce, total sales narrowed to $310 million from $356 million in the year-ago quarter.
Comparable-store sales declined 5.4 percent because of last year’s efforts to clearance the Modern Craftsman line, the contemporary collection that was a failure, Alex Smith, chairman and chief executive officer, said in a statement. Comps were also soft because the retailer moved fiscal 2009 marketing dollars into the second half of the year so there was less marketing support, he said.
Smith said Pier 1’s turnaround is on track.
“Our significantly increased conversion rates prove that customers continue to respond favorably to our improved assortments and the enhanced in-store shopping experience,” he said. “We will look to increase traffic and sales volumes by utilizing the bulk of our marketing dollars in the back half of the year.”
Last week, Pier 1 proposed to buy Cost Plus for approximately $88.4 million in common stock. Cost Plus has rejected the offer so far, but Pier 1 has said it would continue to pursue the acquisition.