Pier 1 Imports Q3 loss widens

14 Dec '06

2 min read

Pier 1 Imports Inc announced a net loss from continuing operations of $72,718,000, or $0.83 per share, for the third quarter ended November 25, 2006. Excluding unusual charges and the effect of the adoption of the new accounting pronouncement.

The net loss from continuing operations on a non-GAAP basis for the third quarter of fiscal year 2007 amounted to $46,101,000, or $0.53 per share, versus $5,233,000, or $0.06 loss per share, on a non-GAAP basis in the third quarter of fiscal year 2006.

Total sales declined 11.8% for the third fiscal quarter to $402,714,000 from $456,690,000 in the year-ago quarter, and comparable store sales declined 12.9%.

For the first nine months of fiscal 2007, the Company's net loss from continuing operations was $168,542,000, or $1.93 per share, compared to a loss per share of $0.23 for the year-ago period. Year-to-date sales were $1,149,504,000, down 9.5% from $1,270,679,000 in the year-ago period, and comparable store sales declined 11.6%.

Operating Results:
Merchandise margins declined to 49.7% from 52.5% in the year-ago quarter due to increase promotional and markdown activity. The increase in promotions and markdowns was a direct result of the Company's focus on maintaining appropriate inventory levels.

Store occupancy costs increased $2.8 million to 18.7% of sales in the third quarter versus 15.9% for the year-ago quarter. Selling, general and administrative costs were 45.6% of sales compared to 34.0% of sales in the third quarter last year.

More Pier 1 Imports Inc News... More Textiles News - United States Of America...