In its first quarter, Pier 1 Imports narrowed its net loss while net sales slipped. However, e-commerce sales continued to show strong growth for the company.
Net sales in the first quarter of fiscal 2018, ended May 27, totaled $409.5 million, compared to $418.4 million in the same period last year. Comparable sales on a constant currency basis were flat compared to the first quarter last year. E-commerce sales totaled $99.3 million, representing year-over-year growth of approximately 23%. E-commerce represented approximately 24% of net sales in the first quarter, as compared to approximately 19% of net sales in the first quarter of fiscal 2017.
The first quarter’s operating loss was $2.3 million compared to an operating loss of $7.8 million in the same period last year. Net loss for the first quarter was $3 million compared to a net loss of $6 million in the year-ago period.
The retailer closed three stores and opened one, ending the first quarter with 1,016 stores. The company said it continues to expect to close approximately 20 to 25 net stores in fiscal 2018.
“During the first quarter, our teams continued to make progress against our key initiatives around merchandising, marketing, supply chain, real estate and cost,” said Alasdair James, president and CEO, Pier 1 Imports. “While we’ve shown operational improvement for several consecutive quarters, there is still much to be done to build the business to its full potential, significantly strengthen our profitability and increase shareholder value. My first few weeks with the company have provided an enhanced perspective on our strong brand equity and competitive omnichannel platform. Pier 1 Imports has a loyal customer base, productive store portfolio, large and growing e-commerce presence and strong balance sheet. Looking ahead, we will be focused on uncovering additional opportunities to leverage these assets to broaden our customer reach, enhance our competitiveness and drive growth.”