From Home Furnishing Business
Pier 1 Q3 Sales, Earnings Fall; Retailer Cuts Full-Year Profit Estimate
Home furnishings and décor retailer Pier 1 Imports (NYSE: PIR) said sales slipped 1.4% to $469.2 million in the fiscal third quarter, but earnings fell by more than 45% due to heavier-than-normal promotions and the effects of Hurricanes Harvey and Irma.
Company comparable sales, which include e-commerce, fell 0.7% in the quarter, which ended Nov. 25 and included Black Friday weekend.
Net income tumbled to $7.38 million or 9 cents per share from $13.6 million or 17 cents per share in the same quarter last year.
“Our third quarter financial performance was impacted by the hurricanes in Texas and Florida, as well as deeper than expected promotional activity in October and November,” said Alasdair James, president and CEO. “We saw improved sales in November, including a solid Black Friday weekend, driven by our strong promotional message.”
However, James said sales trends “dropped considerably” during the first two weeks of December, and the retailer slashed its earnings estimates for the fiscal year “to reflect the current tone and volatility of business.”
Earnings for the fiscal year are now projected at 10 cents to 18 cents per share, down from a September projection of 31 cents to 41 cents per share.
Pier 1 said it expects sales for the year to be about even with the previous fiscal year, and company comparable sales are projected to be flat to 1% below the previous year.
For the nine months ended Nov. 25, sales totaled $1.29 billion, down 1.1% from $1.3 billion in the first nine months of the last fiscal year.
The company recorded a nine-month net loss of $3.43 million or 4 cents per share. That reversed a profit of $3.49 million or 4 cents per share in the comparable period.