Marvin J. Girouard, the Company's Chairman and Chief Executive Officer, said, "In mid-March, we launched our brand repositioning campaign featuring Pier 1's unique Modern Craftsman merchandise, which included new advertising and new in-store visuals intended to mirror Pier 1's catalogs. During the first quarter, customer traffic remained weak. We recognize that it will take time to attract new customers and inform our existing customers of the significant changes in our merchandise assortment.
"As of May 27, 2006, inventories were $357 million, down 12.5 percent from the year-ago period. Cash at the end of the first quarter was $235 million. We are carefully managing the balance sheet in order to maintain flexibility and liquidity to operate the business efficiently, while working to increase sales with the appropriate inventory levels in stores.
"Pier 1's Summer Sale and Clearance event begins in late June and is primarily supported by TV ads and in-store promotions. We will launch our newest merchandise collection called 'Loft 21' in mid-July. It features lifestyle furniture and accessories exclusively available at Pier 1.
To support this merchandise introduction, we plan to distribute 9 million copies of our latest catalog. We continue to see better merchandise margins this quarter compared to last year, but expect June comp store sales to be in the negative low- to mid-teens range compared to last year, when sales were driven by heavier promotions."
Pier 1 Imports Inc is North America's largest specialty retailer of imported decorative home furnishings and gifts with Pier 1 Imports(R) stores in 49 states, Puerto Rico, Canada, and Mexico and Pier 1 kids stores in the United States.
marketing@alchempro.com
