Pier 1 Earnings Fall Flat

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Pier 1 Imports, Inc. (NYSE: PIR) reported fiscal second-quarter financial results after the markets closed on Wednesday. The company posted a net loss of $0.05 per share on $405.8 million in revenue. There were consensus estimates calling for a net loss of $0.05 per share and $406.96 million in revenue. The same period from last year had $0.04 in earnings per share (EPS) on $435.0 million in revenue.
Note that comparable sales for the quarter decreased by 4.3%.

E-commerce represented roughly 20% of net sales in the second quarter, as compared to 17% of net sales in the second quarter of last year. Taking into account e-commerce orders placed in or picked-up in-store, about 90% of the company’s net sales directly touched a store in this quarter.

During the second quarter Pier 1 repurchased $4.5 million worth of shares of which the majority  were completed in June and, therefore, previously reported in the first fiscal quarter 2017 earnings release dated June 29. Of the company’s $200 million share repurchase program announced in April 2014, only $36.6 million remains available for repurchases.

In terms of guidance for the fiscal full year, the company expects to have a net sales contraction of roughly (6%) to (4%) and EPS in the range of $0.24 to $0.32. There are consensus estimates that are calling for $0.26 in EPS on $1.82 billion in revenue for the year.

Alex W. Smith, President and CEO, commented:

Our top-line results reflect soft store traffic levels throughout the second quarter, most notably in July. To drive our business, we have many initiatives currently underway which include: our return to television advertising; merchandise refreshes, including the arrival of new and fall seasonal goods; new floor sets; gift registry introduction; full implementation of our multi-tender loyalty program; and an effective and balanced promotional plan.

Shares of Pier 1 closed Wednesday up 2.2% at $4.27, with a consensus analyst price target of $4.45 and a 52-week trading range of $3.73 to $8.23. Following the release of the earnings report, the stock was down 1.2% at $4.22 in the after-hours trading session.