The chain, which operates 1,261 stores in the United States, Canada and Puerto Rico under the Pier 1 Imports and Pier 1 Kids banners, will open 34 new stores this year, down from the 40 originally planned. In addition, it will close a total of 65 to 70 units, including seven Pier 1 Kids stores.
"We continue to review our real estate portfolio," said executive VP and CFO Cary Turner. Only 11 more stores will open between now and November, he said.
Its main goal, said chairman and CEO Marvin J. Girouard, is to get customers back into the stores. Pier 1 announced a net loss of $73 million for the quarter, partly due to unusual charges, but also a decline in sales. Total sales declined 12.5% compared to the year-ago quarter, and comparable store sales declined 14.8%.
"We have dramatically changed our stores and assortments after talking to shoppers," Girouard said. "We are keenly aware that Pier 1 has lost key market share over the last couple of years, and we are taking the necessary changes and initiatives."
Those include a stronger focus on gifts and the addition of more lower-priced merchandise. Those moves should boost its sales compared with its competitors (including Crate & Barrel and Pottery Barn) during the critical selling season, Girouard said, which remain home furnishings-oriented throughout.
"You will see our stores beginning to set up for the holidays in the last week of September," Girouard said, adding that August sales saw some improvement. "We've worked hard to bring back comps. We're confident we know what we need to do to drive the business."
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