Shares of Pier 1 Imports (PIR) - Get Report jumped 19.91% to $7.77 in after-hours trading on Wednesday after the home decor retailer raised its full-year guidance after posting third-quarter results that topped analysts' estimates.
The Fort Worth, TX-based company also appointed Chairman Terry London as its interim president and CEO effective January 1. CEO Alex Smith previously announced he would step down at year end.
For the fiscal third quarter, Pier 1 reported comparable-store sales rose 1.8%, while the FactSet consensus was for a decline of 1.1%. The retailer posted adjusted earnings of 22 cents per share, which handily beat analysts' projections of 13 cents per share. Revenue decreased 0.4% to $475.9 million year-over-year, but was above Wall Street's forecasts of $466.4 million.
"Sales trends rebounded in the second half of November, following the election, which enabled us to deliver third quarter results well ahead of our forecast," Smith said in a statement. "Our seasonal assortments are resonating with customers and we're seeing strength across nearly all our product categories."
The company also raised its fiscal 2017 adjusted earnings per share guidance to be between 37 cents and 41 cents from 24 cents to 32 cents per share. Analysts are looking for 27 cents per share for the full year, according to FactSet.
For the fourth quarter, Pier 1 sees adjusted earnings per share between 28 cents and 32 cents vs. analysts' estimates of 27 cents per share.
"Our initiatives around merchandising, marketing and promotion - along with strong execution of our holiday plans - resulted in better than expected sales, margin and earnings this quarter. We are increasing our full-year guidance to reflect this performance," CFO Jeffrey Boyer said.
More than 3.42 million of the company's shares changed hands today vs. its average 30-day volume of 2.23 million shares.