Pier 1's Sales Results
Pier 1’s net sales fell 19.5% to $412.5 million in its fourth quarter. Same-store sales decreased 13.7% compared to the 13-week period of fiscal 2018.
Net sales for the fiscal year fell 13.7% to $1.6 billion. Same-store sales decreased 11.0%.
Pier 1 debuted its fiscal 2020 action plan and said it may close up to 15% of its stores if certain targets are not met, as the struggling home décor retailer trys to right the ship.
Going forward, Pier 1 said it’s considering closing up to 45 locations in fiscal 2020 as leases expire and will be seeking occupancy cost reductions. The store closure number could rise to up to 15% of its portfolio if Pier 1 misses performance goals, sales targets, and reductions in occupancy costs. It closed out its fiscal year 2019 with 973 stores, down 30 from last year.
“As anticipated, our fourth quarter sales and profitability were disappointing and reflect the execution issues we identified earlier in the year and have been working with urgency to correct,” noted Interim CEO Cheryl Bachelder.
Bachelder has been tasked with trying to course correct Pier 1’s strategy since she came on as interim CEO late last year, after the sudden departure of Alasdair James in December.