Pier 1 Imports Results Miss Estimates, Cuts FY Guidance; Stock Down 12%

(RTTNews) - Home furnishing retailer Pier 1 Imports Inc (PIR) on Thursday reported second-quarter net earnings of $3.2 million or $0.04 per share compared with $9.2 million or $0.10 per share last year.

Revenues for the quarter were up 2.7% at $430 million compared with $418.6 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.07 per share on revenues of $435.4 million for the quarter. Analysts' estimates typically exclude special items.

Company comparable sales increased 2.5% in the quarter.

Gross margin fell to 34.8% from 38.9% a year ago, reflecting actions taken to reduce elevated inventory levels.

For the third quarter, the company expects earnings of $0.10 to $0.14 per share and comparable sales growth in the low-single digit. Analysts expect earnings of $0.23 per share.

For the full year 2016, the company now expects earnings of $0.56 to $0.64 per share and comparable sales growth in the low single-digit. Earlier it expected earnings of $0.83 to $0.87 per share and comparable sales growth of 3% to 5%.

Analysts expect earnings of $0.83 per share for 2016.

The company has declared a $0.07 per share quarterly cash dividend.