Jan. 6 (UPI) -- Pier 1 Imports said Monday it will be closing nearly half of its 942 stores and reducing its corporate headcount amid slumping sales.
The retail company reported its third-quarter financial results for fiscal 2020 ending Nov. 30, stating store sales decreased 11.4 percent compared to the same period last year.
It said net sales decreased 13.3 percent to $358.4 million compared to $413.2 million from last year's third quarter and its net loss increased to $59 million, or $14.15 a share, compared to $50.4 million, or $12.49 per share, a year ago.
"Fiscal third-quarter sales and margins remained under pressure as we completed our efforts to clear out non-go-forward merchandise," Pier 1 CEO and CFO Robert Riesbeck said in a statement. "Looking, ahead we believe that we will deliver improved financial results over time as we realize the benefits of our business transformation and cost-reduction initiatives. To further advance our progress, we are announcing additional actions today that will enable us to move forward with an appropriately sized store footprint and operating structure as an omnichannel retailer."
The company said it will be closing up to 450 stores to decrease its footprint and plans to close distribution centers as well as reduce corporate expenses.
"This includes a reduction in corporate headcount," the company said in the report.
It will be using a third-party company to facilitate the liquidation, it said.
"Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business decision," Riesbeck said. "We thank our team of hard-working associates for their commitment to Pier 1 and serving our customers."