Total second-quarter sales were $344.6 million. That represents a 7%-decline from $370.7 million in the same quarter of 2006. Store occupancy expenses for the quarter ended this Sept. 1 were down $2.5 million from second-quarter 2006. Other expenses dropped more dramatically and were $35.6 million less than the year-ago quarter. Chief among the contributors were savings of about $14 million in marketing costs and $13.9 million in payroll.
Trimming costs is key to the turnaround effort, and, during a conference call, management said it estimates savings of "at least $100 million for the year." It expects on-going annual savings of $150 million as it improves efficiency and simplifies all aspects of its organizational structure.
Re-merchandising the mix is equally important, especially in light of "the impact of the macro environment on home retailers," said Alex W. Smith, president and CEO, during a conference call. He said he does not expect the Federal Reserve Board's September cut in interest rates will (positively) impact Pier 1's business.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.