Pier 1 Turnaround Effort Returns Comp Gains

Pier 1 eliminated a major summer promotion this year but still managed to post a double-digit same store sales gain in the second quarter. Overall sales in the quarter increased to $310 million from $287 million in the year-earlier period. Comparable store sales for the quarter, ended August 28, increased 11.2% versus last year’s decline of 7.6%.
In the fiscal year’s first six months, comps advanced by 12.7% versus a decline of 7.5% in the year-earlier period. Overall sales for the six months increased to $616 million from $568 million in last year’s period. Pier 1 expects earnings for the second quarter to fall in a range of 10 cents to 12 cents per share, the company announced
Wedbush Morgan analyst Joan Storms anticipated that less clearance inventory and the elimination of a summer sale event would hit Pier 1’s comps, which she expected to gain 10%. However, she noted that consensus analyst comp expectations were $12.4%. If it didn’t beat consensus on comps, Pier 1 guidance for earnings exceeded analyst average expectations, which hovered at 8% before the company’s announcement.