Pier 1 Posts Smaller 2Q Loss On Lower Expenses

FORT WORTH, Texas (AP) — Pier 1 Imports Inc. reported a smaller second-quarter loss on Thursday, helped by reduced expenses and lower inventories.

The home decor company lost $15.8 million, or 17 cents per share, for the period ended Aug. 29 compared with a loss of $30.2 million, or 34 cents per share, a year earlier.

Analysts predicted a loss of 22 cents per share, according to a Thomson Reuters poll. Analysts' estimates generally exclude one-time items.

Operating costs and expenses declined to $302 million from $348.9 million, while inventories were $43 million less than a year ago.

Sales fell 11 percent to $286.7 million from $320.5 million, but beat Wall Street's estimate of $281.9 million.

Sales at stores open at least a year, known as same-store sales, dropped 7.6 percent in the quarter due to declining traffic.

Same-store sales are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Pier 1 had 1,061 North American stores at quarter's end. It plans to close about 50 stores during the fiscal year, down from its initial estimate of 125 closings. The company has shuttered 31 stores for the year to date and anticipates closing another 19 locations in January and February.