Pier 1 May Close 450 Stores As Q3 Comps, Earnings Tumble

As it reported tumbling financial results for the third quarter ended November 30, 2019, Pier 1 Imports also informed investors that it could close as many as 450 of its total 942 stores.

At the end of the third quarter, Pier 1 operated 876 stores in the U.S. and 66 in Canada. Between March 2 and November 30 of last year, Pier 1 closed 30 U.S. locations and one in Canada.

In the third quarter, Pier 1 lost $59 million, or $14.15 per diluted share, versus a net loss of $50.4 million, or $12.49 per diluted share, in the period a year prior.

Comparable sales decreased 11.4% in the quarter year over year.

Net sales declined to $358.4 million from $413.2 million in the year-earlier quarter. Operating loss was $53.3 million as compared to a loss of $28.9 million in the period a year before.

Robert Riesbeck, Pier 1’s CEO and CFO, said, “Fiscal third quarter sales and margins remained under pressure as we completed our efforts to clear out non-go-forward merchandise. Looking ahead, we believe that we will deliver improved financial results over time as we realize the benefits of our business transformation and cost-reduction initiatives. To further advance our progress, we are announcing additional actions today that will enable us to move forward with an appropriately sized store footprint and operating structure as an omnichannel retailer, and better position Pier 1 to meet our customers where they shop.”