Pier 1 Imports Reports Smaller Quarterly Loss
Pier 1 Imports reported a smaller quarterly loss Thursday as the home décor retailer phases out its Pier 1 Kids and e-commerce units to try to return to profitability.
The company's loss narrowed to $43.4 million, or 49 cents a share, in the second quarter ended on Sept. 1 from $73.1 million, or 84 cents a share, a year earlier.
Analysts on average expected a loss of 44 cents, according to Reuters Estimates.
Quarterly sales fell 7% to $344.6 million, and sales in stores open at least a year, a key retail metric, fell 3.6%.
Chief Executive Alex Smith said in a release that if Pier 1 continues to simplify its business "we will be able to reverse five years of deteriorating trends and return to profitability and beyond."
Pier 1 has now posted losses in 10 consecutive quarters. In an effort to become profitable once again, the retailer has cut jobs, closed stores and has vowed to spend significantly less on marketing after pouring millions into futile efforts to boost customer traffic last year.
The company lost customers after abandoning its hallmark wicker furniture in favor of modern items like those of its rivals. It has also been battered in recent years by competition from discounters like Target and Wal-Mart Stores .
Pier 1 closed Wednesday at $6.43 on the New York Stock Exchange