First Starbucks backed off closing some stores and now Pier 1 is doing the same. The home decor company lowered its number of store closings in its 2009 fiscal year to 50 down from its original plan to close 125. It has closed 31 to date and will close 19 next January and February. (Our previous number had been 80, in part because we're going by the calendar year. I've adjusted the math below to reflect 31 closures in 2009.)
That came as part of the firm's second quarter results, where it also reported a smaller loss than the same quarter of last year. It also beat analyst estimates.
The home decor company lost $15.8 million, or 17 cents per share, for the period ended Aug. 29 compared with a loss of $30.2 million, or 34 cents per share, a year earlier.Analysts predicted a loss of 22 cents per share, according to a Thomson Reuters poll. Analysts' estimates generally exclude one-time items.
Operating costs and expenses declined to $302 million from $348.9 million, while inventories were $43 million less than a year ago.
Sales fell 11 percent to $286.7 million from $320.5 million, but beat Wall Street's estimate of $281.9 million.
Sales at stores open at least a year, known as same-store sales, dropped 7.6 percent in the quarter due to declining traffic.
Same-store sales are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.
Pier 1 had 1,061 North American stores at quarter's end. It plans to close about 50 stores during the fiscal year, down from its initial estimate of 125 closings. The company has shuttered 31 stores for the year to date and anticipates closing another 19 locations in January and February.
Bankruptcies and Liquidations:
- Jan. 7, Goody's liquidates, closing 287 stores
- Jan. 8, Against All Odds files for bankruptcy protection, operates 64 stores overall, plans to close West Coast stores
- Jan. 13, Shane Co. files for bankruptcy, operates 23 stores
- Jan. 14, Gottschalks files for bankruptcy, operates 58 stores, Update: March 31, Gottschalks will liquidate
- Jan. 16, Circuit City to Liquidate, closing 567 stores
- Feb. 6, Fortunoff, operates 20 stores
- Feb. 6, Bruno's, operates 66 stores
- Feb. 12, S&K Famous Brands, operates 136 stores; Update: Feb. 19, plans to close 30. Update: May 26, plans to close rest.
- Feb. 17, Innovation Luggage, operates 10 stores
- Feb. 23, Ritz Camera, operates about 800 stores; Update, April 6, closing 300 camera stores and 120 Boater's World stores, Update, July 13, Liquidation possible
- March 6, Joe's Sports & Outdoor, operates 30 stores
- March 25, Bi-Lo, operates 215 stores
- April 13, Z Gallerie, operates 56 stores
- April 13, Ultra Stores, operates 181 stores
- May 5, Filene's Basement, operates 25 stores, sold 17 Update: Syms and Vornado buy the chain.
- May 28, Anchor Blue, operates 177 stores, closing 50
- May 29, Oilily, operates 33 stores, closed 8
- June 17, Eddie Bauer, operates 371 stores
- July 2, Crabtree & Evelyn, operates 126 stores
- July 13, Basha's, operated 163 stores, closed 5, closing 10 more
Potential Bankruptcies & Liquidation Impact: 1,541 confirmed closures out of about 3,385 stores
Announced Closings
- Jan. 8, New York & Co., 50 stores
- Jan. 8, Macy's, 11 stores
- Jan. 9, Supervalu, 50 stores
- Jan. 13, Cost Plus, 26 stores
- Jan. 20, Yankee Candle, 28 Illuminations stores
- Jan. 21, Filene's Basement, 11 stores
- Jan. 22, Phillips-Van Heusen, 175 stores
- Jan 22, Brown Shoe, up to 35 Famous Footwear stores
- Jan. 26, Home Depot, 48 stores
- Jan. 29, Starbucks, 200 U.S. Stores (plus 100 international), Update:Starbucks keeps 30 stores open.
- Jan. 29, Chico's, up to 25 stores
- Feb. 9, Talbots, 20 stores
- Feb. 24, Jimmy'Z, 11 stores
- Feb. 24, Z. Gallerie, 25 stores
- Feb. 25, Zale Corp., 115 stores
- Feb. 26, Gap, 50 net closings
- Feb. 27, Sears, 44 stores, Update: 28 stores
- March 3, Virgin Megastores, 6 stores
- March 6, Ann Taylor, 37 stores in 2009, 163 total by end of 2010; Update Augusut 3: 30 more stores in 2009
- March 18, Drug Fair, 11 stores
- March 23, Pier 1, 80 stores; Update: Only closing 31
- April 3, Rite Aid, 117 stores
- April 21, Kirkland's, up to 40 stores
- April 29, Jones Apparel Group, 225 stores
- June 8, J.Jill, 75 stores
- June 16, Ruehl, 29 stores
- July 9, Smith & Hawken, 56 stores
- Sept. 9, Samsonite, about 86 stores
- Sept. 9, Pacific Sunwear, 40 stores
- Sept. 15, Blockbuster, up to 685 stores
Total Closings: up to 2,390 U.S. stores
Potential Impact of All Announcements to Date: 3,931 closures out of up to 5,775 potentially affected U.S. stores