After a disappointing fourth-quarter earnings report, Pier 1 Imports said Wednesday that it will close about 100 stores over the next three years.
The Fort Worth-based home goods retailer reported $33.1 million in net income, or 37 cents a share, in the quarter ending Feb. 28, compared with $42.5 million, or 41 cents a share, a year ago.
Pier 1’s sales increased 5.1 percent to $543.6 million in the quarter, up from $515.8 million in the same quarter last year.
“Fiscal 2015 clearly did not turn out as we had originally budgeted and we are very disappointed with the result,” CEO Alex W. Smith, said in a statement. “Our job now is to use the strength of Pier 1 Imports brand and our investments in it to improve our profitability.”
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Shares of Pier 1 (ticker: PIR) closed down 3 cents at $12.65, but the stock rallied in after-hours trading at $13.24.
Smith said the company’s 1 Pier 1 program, in which the online and brick-and-mortar operations are being integrated, is almost complete and that the company “couldn’t be more pleased with the results.”
Laura Coffey, executive vice president and interim chief financial officer, said Pier 1 will take advantage of lease expirations to reduce costs and has already identified about 100 stores. A list was not released.
Within three years the company said it expects to operate just under 1,000 stores.
“Going forward, we will continue to refine our financial strategy, including careful management of selling, general and administrative expenses, to maximize profitability and cash flow,” she said.
Pier 1 had warned in February that it will fall short of its sales and earnings targets for the fourth quarter because of a problematic forecast. At the time, the company said its longtime chief financial officer, Cary Turner, was retiring. Coffey was named to the post at the time.
Max B. Baker, 817-390-7714