Pier 1 Imports launched a new strategic plan in the second quarter but customers didn’t jump on board, as the retailer posted a deeper net loss and a comparable sales decline.
The company reported a net loss of $51.1 million, or 63 cents per share, versus a net loss of $7.8 million, or 10 cents per share, in the year-earlier period. The second quarter loss matched a MarketBeat-published analyst consensus estimate.
The loss in the year-prior quarter included $3.6 million, or five cents per share, after tax expense for legal and regulatory costs relating to a California wage-and-hour matter and an ongoing U.S. Consumer Product Safety Commission inquiry.
Comparable sales decreased 11.4% in the quarter year over year. Second quarter net sales slipped 12.8% to $355.3 million from the year-before period. Operating loss was $62.5 million compared to an operating loss of $11.3 million in the period a year previous.
Alasdair James, Pier 1 president and CEO, said, “As previously communicated, our second quarter financial results reflect execution challenges around our August brand re-launch and our ‘New Day’ strategic plan initiatives taking longer than expected to gain traction. However, we have already taken steps to refine our marketing program and product allocation and are encouraged by early signs of improvement in some of our key customer metrics in recent weeks, including conversion and customer growth. Indeed, as we sharpen our execution on key initiatives around product and marketing, we continue to expect our top-line trend to improve over time. We remain confident that our plan is the right course to drive long-term growth and profitability.”