Trends Should Boost Holiday Results, Says Pier 1

Pier 1 president and CEO Alex Smith embarked on an analyst and shareholders event at one of the chain’s Manhattan stores today with a message that strong autumn sales and operational trends should see the retailer through a successful holiday season.
The company stated that positive trends including increased traffic, conversion and average ticket numbers in the first two months of the third quarter are reason to believe that comparable store sales will increase by 8% to 10% during the three months ending November 27. That gain will come on top of a 13.7% comp advance in last year’s third quarter. Pier 1 expects third quarter merchandise margins to reach approximately 58% of sales versus 56.6% in the same period last year.
“To capitalize on and maintain the strong traffic and to seek to maximize sales, we have added approximately $3 million of additional store payroll and marketing in the third quarter,” Smith said. “We are upbeat on the start of our holiday selling season and look forward to the couple of months that lie ahead.”