Pier 1 (NYSE:PIR) continues to splinter, reporting a loss of $12.5 million, or $0.14 per share, for the first quarter ended May 28. That's down a staggering 208% from last year. Total sales declined 6.1% to $405.7 million, while comp sales plunged 12%. The only things that went up for the company were its expenses and inventories -- two things that would ideally be decreasing.
The company said it's emphasizing new merchandise in bold, new colors that define its style. However, the company once again is in the midst of its annual wicker promotion. Wicker is fine, but it's no longer unique. When I can get essentially the same item at Target (NYSE:TGT) for a lower price, why would I opt for Pier 1? I think Pier 1 desperately needs to come up with a new product line, which will give customers a reason to return to its stores. Simply offering the same old stuff in new colors isn't going to get the job done.
Pier 1 has provided no indication as to when it expects its situation to be improved by its so-called "new" product lineup. It's certainly not expected to happen in the second quarter. The company expects second-quarter earnings to range somewhere between a loss of $0.07 per share and a gain of just $0.03 per share. In addition, it anticipates yet another decrease in same-store sales in the mid-to-high single digits.
It's no secret that these aren't the best of times for the furniture industry overall. There has been a plethora of companies, including Bombay (NYSE:BBA) and Ethan Allen (NYSE:ETH), reporting less-than-stellar results lately. What concerns me about Pier 1 more than some of the others, though, is the fact that it simply expects customers to return to its stores without giving them anything new to serve as a draw.
Until Pier 1 shows that it's beginning to make progress, or at least provides some better guidance regarding how and when it expects to improve, I'd advise shoppers and investors to tell the company to take a long walk on a short pier.
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Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article.
