Pier 1 Plummets Amid Sales Slump and Plans to Close 450 Stores

Retailer’s shares clobbered on plans to close nearly half its locations after comparable-store sales fall 11.4% in latest quarter.
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Shares of Pier 1 Imports, Inc. (PIR) - Get Report fell almost 17% on Monday after the retailer posted a large decline in same-store sales and announced plans to close 450 stores. 

The company said comparable-store sales in its fiscal third quarter fell 11.4%. It blamed more than half of the decline on “the shift of certain holiday selling days, which were included in last year’s fiscal third quarter,” according to a statement. Because Thanksgiving came later in November this year, the traditional Christmas retail season was shorter by several days than the previous year.

“Reducing the number of our brick-and-mortar locations is a necessary business decision, CEO Robert Riesbeck said in the statement. 

As of early November, the company had more than 950 stores, according to a press release announcing Riesbeck’s appointment as CEO.

Shares of Pier 1 fell 16.9% to $ 5.18 in regular trading on Monday and were declining another 4.7% in after-hours trading.