Citing below-plan sales,
Pier 1 Imports
on Tuesday lowered its second-quarter guidance, warning that its earnings won't meet Wall Street expectations.
The home furnishings retailer now expects to earn between 20 cents to 23 cents a share in its current quarter. That range is down from its previous guidance of 21 cents to 25 cents earnings per share.
Analysts surveyed by Thomson First Call were expecting earnings of 24 cents a share.
"Sales started soft in July, and the expected pick-up has not materialized," said company CEO Marvin J. Girouard in a statement. "Sales were unexpectedly disappointing, and we do not see any positive momentum in the sales trend through August."
Pier 1 now expects its July same-store sales to decline between 4% to 5%. A widely watched indicator of chain store's financial health, same-store sales compare results at like outlets open for more than one year. Pier 1 had previously projected that its comparable-store sales would range from 2% growth to a 2% decline in the second quarter.
But the company's June sales helped throw it off the mark. Pier 1's same-store sales fell 2.9% last month.
As indicated, the company doesn't expect sales to improve next month. The company expects its comparable-store sales to fall 3% to 6% in August. For the second quarter, the company now estimates its same-store sales will fall 3% to 5%.
Pier 1 has had a somewhat disappointing year thus far. In addition to its second-quarter warning, the company's earnings
fell year over year in the first quarter on slumping comparable-store sales.
Despite its struggles, Pier 1's stock is up 5.4% this year and 38.3% since bottoming out in March. The company's stock closed regular trading down 67 cents, or 3.3%, to $19.95 on Tuesday.
In after-hours trading, the company's stock was down 3 cents, or 0.2%, to $19.92.