Retailers, consumers and prices
Check Out Line: Pier 1 profits despite falling sales
Check out how a little debt can help that bottom line.
Pier 1 posted a profit on Thursday, even though sales fell 9 percent overall and 7.5 percent at stores open at least a year.
How’d they do it? Well, recording a $48 million gain on the repurchase of debt was surely a help. Even excluding that gain, the loss per share topped analysts’ forecasts. Inventory was down a bit and while sales fell, the decline was smaller than Wall Street anticipated.
The retailer, like others, has been doing what it can to cut costs as shoppers shy away from those home furnishing extras like outdoor furniture. Who knows, maybe Times Square will want to replenish its supply with some of Pier 1′s goods.
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