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Wednesday, December 13, 2017

=Pier 1 Imports (PIR) reported earnings on Wed 13 Dec 2017 (a/h)

Pier 1 Imports misses by $0.02, reports revs in-line; guides Q4 EPS and rev below consensus 
  • Reports Q3 (Nov) earnings of $0.09 per share, $0.02 worse than the Capital IQ Consensus of $0.11; revenues fell 1.4% year/year to $469.2 mln vs the $466.6 mln Capital IQ Consensus. Company comparable sales for the quarter decreased 0.7% vs. down 0-2% guidance. E-Commerce represented ~26% of net sales in the third quarter of fiscal 2018, as compared to ~20% of net sales in the third quarter of fiscal 2017. Taking into account e-Commerce orders placed in or picked up in-store, ~90% of the Company's third quarter fiscal 2018 net sales directly touched a store.
  • Third quarter merchandise margin (the result of adding back delivery and fulfillment net costs and store occupancy costs to gross profit) totaled $269.0 million, or 57.3% of net sales, compared to $286.4 million, or 60.2% of net sales, in the third quarter of fiscal 2017. The year-over-year decline is attributable to heightened promotional activity.
  • Co issues downside guidance for Q4, sees EPS of $0.16-0.24, excluding non-recurring items, vs. $0.38 Capital IQ Consensus Estimate; sees Q4 revs of +1-3% to $533-544 mln vs. $558.02 mln Capital IQ Consensus Estimate. 
  • "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."
  • "We recently completed a rigorous strategic review of the Pier 1 Imports brand and enterprise," continued James. "Importantly, we see compelling go-forward opportunities to broaden the appeal of the brand, maximize the role of stores and e-Commerce, and substantially improve our operating margins. We are building a three-year strategic plan to transform the business, and are beginning to set things in motion with initiatives, testing and select organizational changes in the key areas of sourcing, supply chain, real estate, marketing and promotional effectiveness. We look forward to sharing our detailed blueprint in early 2018."  

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