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.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.