Pier 1 Imports (PIR) - Get Report the struggling home-decor retailer, reported a loss significantly wider than a year earlier on a sharp sales decrease, and it said it would close nearly 60 stores during the fiscal year.
The loss in the quarter was $81.7 million, or $19.97 a share, vs. a year-earlier loss of $28.5 million, or $7.11 a share. It was the company's fifth consecutive quarter of losses.
Sales in the quarter were $314 million, down from $371 million a year earlier. Analysts had been calling for revenue of $330 million in revenue. Pier 1 said same-store sales in the first quarter tumbled 13.5%.
The company said it was looking to close 57 stores in the fiscal year, higher than the estimate of 45 stores the company provided in April.
"We are in active discussions with our landlords," said interim CEO Cheryl Bachelder on the company's earnings call. "Where we have not seen landlord participation, we have begun our store closing program as we said we would."
The CEO added that if Pier 1 doesn't see a turnaround more stores closings could follow.
"If we are unable to achieve our performance goals, sales targets and reductions in occupancies and other costs, we could close up to 15% of our portfolio," she said.
S&P Global Ratings warned in April that Pier 1 could be headed toward bankruptcy as its performance continues "to deteriorate significantly."
The stock fell 18.72% to $7.14 on Thursday. The company last week completed a 1-for-20 reverse stock split to avoid being delisted from the New York Stock Exchange.