Pier 1 Imports Inc (NYSE: PIR) shares plummeted Thursday, after the retailer reported weaker-than-expected earnings for its third quarter and issued a weak fourth quarter and FY18 guidance.
Net sales for the third quarter of fiscal 2018 decreased 1.4% to $469.2 million, compared to $475.9 million in the same period last year. Company comparable sales for the quarter decreased 0.7% versus the year-ago period.
E-Commerce represented approximately 26% of net sales in the third quarter of fiscal 2018, as compared to approximately 20% of net sales in the third quarter of fiscal 2017. Taking into account e-Commerce orders placed in or picked up in-store, approximately 90% of the Company’s third quarter fiscal 2018 net sales directly touched a store.
Gross profit for the third quarter of fiscal 2018 totaled $176.7 million, or 37.7% of net sales, compared to $196.4 million, or 41.3% of net sales, in the third quarter of fiscal 2017.
Said CEO Alasdair James, “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. We saw improved sales in November, including a solid Black Friday weekend, driven by our strong promotional message.
“However, overall trends dropped considerably during the first two weeks of December. We have adjusted our promotional plans for the remainder of the holiday season, and significantly revised our financial guidance to reflect the current tone and volatility of business.”
Shares in Pier 1 dropped $1.79, or 30.6%, to $4.06 midday Thursday.
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