Pier 1 Imports reports miss on 2Q earnings and revenue; shares tumble in after hours trade

Retailer Pier 1 Imports Inc (NYSE:PIR) reported on Wednesday a miss in both fiscal 2019 second quarter earnings and revenue, causing shares to tumble sharply in after-hours trade. 

The company said revenues came in at $355.3 million, down from $407.61 million in the year-ago quarter and the consensus expectation of $360.29 million. Earnings per share reported a loss of US$0.63, larger than the consensus of a loss of US$0.61 and sharply up from the year-ago loss of US$0.05.

Net loss for the second quarter of fiscal 2019 totaled $51.1 million, six-fold higher than the net loss of $7.8 million a year ago. Gross profit for the second quarter of fiscal 2019 totaled $93.5 million, or 26.3% of net sales, compared to $140.2 million, or 34.4% of net sales, for the second quarter of fiscal 2018.

Shares of Pier 1 fell 7.8% to $1.42 in after-hours, having closed 2.67% higher at $1.54 on Wednesday.

READ: Pier 1 fiscal 4Q results disappoint across the board; shares fall

“Our second quarter financial results reflect execution challenges around our August brand re-launch and our ‘New Day’ strategic plan initiatives taking longer than expected to gain traction,” said Pier 1 president and CEO Alasdair James.

Net sales for the 26 weeks ended September 1, 2018, were $727.2 million, down 11.0% from the same period in fiscal 2018, the company said.

The company operated 989 stores at the end of the second quarter of fiscal 2019, a decrease of 23 from the second quarter of fiscal 2018. 

Pier 1 is a retailer specializing in imported home furnishings and decor, particularly furniture, table-top items, decorative accessories, and seasonal decor.

The company is based in Fort Worth, Texas.

Story by ProactiveInvestors