Pier 1 Imports Q3 comparable sales decreased 11.4%, will close up to 450 locations
Christian Fernsby | ▼ January 7, 2020
Pier 1 Imports reported financial results for the third quarter ended November 30, 2019.
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Topics: PIER 1 IMPORTS
Company comparable sales decreased 11.4% compared to the third quarter of fiscal 2019.
Pier 1 Imports estimates that the shift of certain holiday selling days, which were included in last year’s fiscal third quarter, negatively impacted third quarter fiscal 2020 company comparable sales by approximately 650 basis points.
The impact of this timing shift is expected to reverse in the fourth quarter of fiscal 2020.
Pier 1 Imports net sales decreased 13.3% to $358.4 million compared to the third quarter of fiscal 2019.
Pier 1 Imports net loss was $59.0 million, or ($14.15) per share.
Pier 1 Imports impairment charges totaling $14.1 million which consisted of $9.2 million for lease right-of-use assets and $4.9 million for fixed assets.
Pier 1 Imports inventory of $328.9 million, down approximately 15.3% year-over-year.
Pier 1 Imports cash and cash equivalents of $11.1 million at quarter end, $189.5 million outstanding under its senior secured term loan, $50.0 million of borrowings under the Company’s FILO tranche, $96 million of borrowings under its $350 million revolving credit facility and $46.5 million in letters of credit outstanding under the Revolving Credit Facility, with $158.5 million remaining available for cash borrowings, all as of November 30, 2019.
In order to better align its business with the current operating environment, Pier 1 intends to reduce its store footprint up to 450 locations.
To reflect the revised store footprint, the company also plans to close certain distribution centers and reduce its corporate expenses.
This includes a reduction in corporate headcount.
In order to maintain the same high standards customers have come to expect and ensure a seamless experience for customers at these locations, the company is utilizing the services of a third-party liquidator to help manage the store closings.
On January 6, 2020, the company received consent from its lenders under the Revolving Credit Facility to permit the reduction to the store footprint and related actions. ■ What to read next
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