As sales slip, Fort Worth’s Pier 1 closes stores, reworks its marketing efforts

As it negotiates store leases amid continued sales declines, Pier 1 Imports Inc. this week said it would close 57 locations by February.

The Fort Worth-based home furnishings retailer increased by 12 the number of store closures that it had reported during its fiscal year-end earnings call in mid-April. The retailer operated 967 stores on June 1.

Pier 1 has remade its marketing strategy, which interim CEO Cheryl Bachelder said on Wednesday had been ineffective and unproductive. A new marketing plan is underpinned by analytics, she said.

The company’s focus in the short term appears to be a new selection of merchandise, including indoor furniture and housewares.

Pier 1’s online sales are higher than the revenue generated by stores, Bachelder said, although she did did not release percentages.

The company on Wednesday reported its finances for the first quarter, which ended June 1.

Net sales decreased 15.5% to $314.3 million, compared to $371.9 million for first quarter of fiscal 2019. Its net loss was $81.7 million, or $19.97 per share, which reflected the company’s 1-for-20 reverse stock split on June 20. Bachelder expects the pressure to continue in the second quarter.