Pier 1 Imports Inc (NYSE: PIR) reported weak preliminary earnings results for its second quarter.
The company based in Fort Worth, Texas, said that, on a preliminary basis, based on the information currently available, the Company expects comparable sales to decrease approximately 11.4% compared to the second quarter of fiscal 2018;
Fiscal 2019 second-quarter loss per share in the range of $0.62 to $0.64; Quarter-end inventories is expected to decrease approximately 17% versus a year ago; and
Quarter-end cash and cash equivalents of approximately $117 million, with no short-term borrowings under the Company’s $350 million revolving credit facility during the quarter.
According to CEO Alasdair James, "We are disappointed in our results for the second quarter, which primarily reflect execution challenges as we prepared for and implemented our August brand re-launch.
"We are in the very early stages of the multi-year 'New Day' strategic plan we announced in April, and while we remain confident that our plan is the right course for Pier 1, it is now clear that our initiatives are taking longer than expected to gain traction. Our marketing program did not drive the level of traffic we had anticipated, and we experienced delays in getting certain new products into our stores."
Given that it is taking more time for Pier 1’s ‘New Day’ initiatives to gain traction, the Company is discontinuing its fiscal 2019 guidance at this time; however, the Company expects to continue providing commentary on its forward-looking business trends on its quarterly earnings calls.
The Company will report financial results for the second quarter ended September 1 after the close of the market on Wednesday, October 3.
Shares in the company plummeted 37 cents, or 20.9%, to $1.43
