The locally based retailer said a drop in customer traffic andcompetition from big box retailers contributed to losses that morethan doubled during the three months ending March 27, when thecompany racked up $23.2 million, or 27 cents per share, of red ink.Losses for the same period last year were $12.5 million, or 14cents per share. The current numbers included a $407,000, orone-cent-per-share loss from discontinued operations, the companysaid.

Quarterly revenue also dropped by 3.6 % during the period,slipping to $376.1 million from $390.3 million in the prior year'squarter. Sales at stores open at least a year were also off by 6.6%in the quarter.

In a conference call with analysts Thursday, Pier 1 Chairman andCEO Marvin J. Girouard said the company responded to the sharpincrease in losses by introducing its Modern Craftsman merchandisein a bid to attract more upscale customers. The new product line,which required the company to update its catalogs and create a newadvertising campaign, failed to bolster the numbers, however.