Pier 1 Updates Q4, FY Outlook
FORT WORTH, Texas-Pier 1 Imports said it expects same-store sales for the 13-week fourth quarter ending on March 1 to finish 5 percent behind the same-store sales for the 13 weeks ending on Feb. 23, 2013.
Pier 1 also said same-store sales for the quarter ending on March 1 would likely be flat compared to the period ending on March 2, 2013. The company provided both estimates because last year's quarter included an extra week, which produced about $29 million in net sales.
Total net sales for the quarter will total from $512 million to $514 million--a result Alex Smith, Pier 1's president and CEO, described as "frustrating and disappointing." Smith attributed the totals to the "significant disruption from adverse weather in many of our major markets. This has resulted in considerably softer store traffic, as well as some temporary store closings, which further pressured fourth-quarter sales and merchandise margin."
On a more positive note, Smith said the company's 1 Pier 1 strategy, which allows consumers to shop how they choose, is making more headway. Pier 1's e-commerce sales reached 5 percent of total sales in the quarter, and traffic on pier1.com increased to 1.9 million visitors per week. "For the full year, e-commerce will contribute approximately 4 percent to fiscal 2014 total sales, putting it readily on track to reach our targeted contribution of 10 percent of total sales by fiscal 2016," Smith said.
He also said Pier 1 is "confident in our long-term outlook." The company has a clear view of how 1 Pier 1 will evolve, a talented executive team and a strong balance sheet to support its growth plans, Smith said.