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

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 May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money