Pier 1 likes 3Q outlook

HTT Staff -- Home Textiles Today, 11/9/2010 3:08:32 PM

New York - Pier 1 Imports said today it expects comparable store sales to increase in the range of 8% to 10% for the third quarter ending Nov. 27. Last year's comp store sales for the third quarter increased 13.7%
The company is hosting a store event for shareholders and the analyst community today at the Pier 1 Imports store located at 71 Fifth Ave. here.
In anticipation of this event, the company said in a statement that it continues to see positive trends with increases in traffic, conversion and average ticket for the first two months of the third quarter. Merchandise margins for the third quarter are expected to be approximately 58% of sales compared to last year's third quarter merchandise margins of 56.6% of sales.
President and ceo Alex Smith said the momentum should continue through the holiday selling season and the company has added about $3 million of additional store payroll and marketing in the third quarter.
Pier 1 will announce fiscal 2011 third quarter sales on Dec. 2.