President and CEO Alex Smith continues to right the ship at Pier 1 Imports as the retailer announced its third quarter results last week. Sales for the quarter improved 8.2% over the same period last year, driven primarily by improved merchandise management. Merchandise margins for the quarter increased $23.5 million to $208.5 million or 58.9% of sales, compared to 56.6% of sales last year, an increase of 230 basis points. Comp store sales increased 10.2% for the quarter versus last year’s third quarter comp store sales increase of 13.7%

Cary Turner, executive vice president and CFO, said the margin improvements were a direct result of “significantly less clearance activity, reduced vendor and supply chain cost, and well managed inventory levels.� In addition, Smith added, “we manage our inventory effectively to minimize markdown risks and most importantly, the increased accuracy in our merchandise selection and buying decisions drives merchandise margins through both sales and lower markdowns.�

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