As it released preliminary second quarter financial results, which included an anticipated loss, Pier 1 Imports has reached an agreement with president and CEO Alex Smith that will result in his leaving the company effective December 31.
Pier 1’s board is executing an existing succession planning process, and is conducting a search for a new CEO.
Terry London, Pier 1 Imports chairman, said, “We greatly appreciate Alex’s many years of leadership and considerable contributions to Pier 1 Imports. Most notably, he led a remarkable turnaround of the business from 2009 to 2013, creating one of the most profitable specialty stores in our sector. Subsequently, Alex spearheaded the transformation of Pier 1 Imports from a pure brick-and-mortar business to establish the competitive omnichannel platform we have in place today. The company is now well positioned with the infrastructure, capabilities and brand equity to effectively compete in a changing retail environment.”
Pier 1 stated that it expects its second quarter loss per share to be in the range of five to six cents excluding one-time items, if any, related to Smith’s planned departure. In last year’s second quarter, the company recorded net income of $3.2 million, or four cents per diluted share.
Comparable sales, including e-commerce, slipped 4.3% compared to the quarter a year ago, Pier 1 reported. Net sales for the second quarter decreased by 6.7% versus the year-prior period. E-commerce revenues represented about 20% of net sales in the second quarter.
For the first quarter ended May 28, Pier 1 Imports posted a net loss of $6 million, or seven cents per diluted share, versus net income of $6.9 million, or eight cents per diluted share, in the year-previous period. Comparable sales decreased 2.5%. Net sales for the first quarter slipped 4.2% to $418.4 million versus the 2015 period.