Pier 1 Jumps From Loss to Profit in Second Quarter
FORT WORTH, Texas-Reversing a $15.8 million net loss from last year, Pier 1 Imports posted net income of $14.4 million in its fiscal second quarter.
Alex W. Smith, the retailer's president and chief executive officer, said the strong bottom line signals that Pier 1 is returning to "profitability and beyond." Pier 1's net sales reached $309.9 million in the second quarter, 8.1 percent ahead of one year ago and including a powerful 11.2 percent increase in same-store sales. In addition, merchandise margin was 58 percent, 630 basis points greater than in last year's second quarter.
Pier 1 said the boost in margin came about thanks to decreased clearance activity, reduced vendor and supply-chain costs and its efforts at managing inventories. All of these factors easily offset a 3.6 percent increase in selling, general and administrative expenses.