Pier 1 Posts Second Quarter Profit

Pier 1 Imports posted an 11.2% gain in comparable store sales and declared a net income of $14.4 million, or 12 cents per share, in the second quarter ended August 28. The net income gain contrasts with a loss of $15.8 million, or 17 cents per share, in the second quarter of 2009. Total sales in the period were up 8.1% to $309.9 million.
A 630 basis point improvement in merchandise margins was positively impacted by decreased clearance activity, reduced vendor and supply chain costs, and improved inventory levels. Pier 1 managed to reduce store occupancy costs to $66.3 million for the period compared to $67.5 million in last year’s quarter primarily due to negotiated rental reductions from landlords and lower overall store count, offset slightly by an increase in utility costs.