Pier 1 Imports, Inc. Reports Preliminary Second Quarter Fiscal 2019 Financial Results
September 20 2018 - 4:15PM
Business Wire
Pier 1 Imports, Inc. (NYSE:PIR) today announced preliminary
financial results for the second quarter of fiscal 2019 ended
September 1, 2018. On a preliminary basis, based on the information
currently available, the Company expects:
- Company comparable sales to decrease
approximately 11.4% compared to the second quarter of fiscal
2018;
- Fiscal 2019 second quarter loss per
share in the range of $0.62 to $0.64;
- Quarter-end inventories to decrease
approximately 17% versus a year ago; and
- Quarter-end cash and cash equivalents
of approximately $117 million, with no short-term borrowings under
the Company’s $350 million revolving credit facility during the
quarter.
“We are disappointed in our results for the second quarter,
which primarily reflect execution challenges as we prepared for and
implemented our August brand re-launch,” said Alasdair James,
President and CEO. “We are in the very early stages of the
multi-year ‘New Day’ strategic plan we announced in April, and
while we remain confident that our plan is the right course for
Pier 1, it is now clear that our initiatives are taking longer than
expected to gain traction. Our marketing program did not drive the
level of traffic we had anticipated, and we experienced delays in
getting certain new products into our stores.
“Although we now expect sales to turn positive and accelerate
later than planned, we are encouraged by early signs of improvement
in some of our key customer metrics in recent weeks, including
conversion and growth in new, retained and reactivated customers.
We also continue to receive positive feedback from customers about
our new store environment. Our team has been working tirelessly to
implement our ‘New Day’ strategic plan, but there are clearly areas
where we need to sharpen our execution moving forward.”
Mr. James concluded, “We continue to see fiscal 2019 as a
pivotal year of investment and transition. We are refining key
initiatives as needed to better communicate Pier 1’s improved value
and deliver a greater level of newness to the customer.
Importantly, we are continuing to make progress toward capturing
operating efficiencies through initiatives around pricing and
promotion, inventory optimization and sourcing and supply chain.
Our top priority over the coming months is to take the steps needed
to drive long-term growth and profitability.”
Guidance Update
Given that it is taking more time for Pier 1’s ‘New Day’
initiatives to gain traction, the Company is discontinuing its
fiscal 2019 guidance at this time; however, the Company expects to
continue providing commentary on its forward-looking business
trends on its quarterly earnings calls. Pier 1 expects its top-line
trend to materially improve as the execution of key initiatives
progresses and remains committed to its long-term net sales growth
and EBITDA margin targets, but now believes these targets may be
achieved over a longer time horizon.
Second Quarter Fiscal 2019 Financial Results Conference
Call
The Company will report financial results for the second quarter
ended September 1, 2018 after the close of the market on Wednesday,
October 3, 2018, and will hold a conference call to discuss these
results at 4:00 p.m. Central Time/5:00 p.m. Eastern Time that
afternoon. A live audio webcast will be accessible at the Company’s
website at https://investors.pier1.com. The call can also be
accessed domestically at (866) 378-2926 and internationally at
(409) 350-3152, conference ID 5559187.
Financial Disclosure Advisory
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles. All financial data
in this press release is preliminary and represents the most
current information available to the Company’s management, as
financial closing procedures for the second quarter ended September
1, 2018 are not yet complete. These estimates are not a
comprehensive statement of the Company’s financial results for the
three-month period ended September 1, 2018, and actual results may
differ materially from these estimates as a result of the
completion of normal quarter-end accounting procedures and
adjustments, which could result in changes to these preliminary
results.
Except for historical information contained herein, the
statements in this press release or otherwise made by our
management in connection with the subject matter of this press
release are forward-looking statements (as such term is defined in
the Private Securities Litigation Reform Act of 1995) and involve
risks and uncertainties and are subject to change based on various
important factors. This press release includes forward-looking
statements that are based on management’s current estimates or
expectations of future events or future results. These statements
are not historical in nature and can generally be identified by
such words as “believe,” “expect,” “estimate,” “anticipate,”
“plan,” “may,” “will,” “intend” and similar expressions.
Management’s expectations and assumptions regarding future results
are subject to risks, uncertainties and other factors that could
cause actual results to differ materially from the anticipated
results or other expectations expressed in the forward-looking
statements included in this press release. These risks and
uncertainties include, but are not limited to: the fact that the
Company’s fiscal 2019 second quarter closing procedures are not
complete and therefore actual results may differ materially from
preliminary results; the impact of initiatives implemented in
connection with the Company’s Pier 1 2021: A New Day three-year
strategic plan; the effectiveness of the Company’s marketing
campaigns, merchandising and promotional strategies and customer
databases; consumer spending patterns; inventory levels and values;
the Company’s ability to implement planned cost control measures;
risks related to U.S. import policy; and changes in foreign
currency values relative to the U.S. dollar. These and other
factors that could cause results to differ materially from those
described in the forward-looking statements contained in this press
release can be found in the Company’s Annual Report on Form 10-K
and in other filings with the SEC. Refer to the Company’s most
recent SEC filings for any updates concerning these and other risks
and uncertainties that may affect the Company’s operations and
performance. Undue reliance should not be placed on forward-looking
statements, which are only current as of the date they are made.
The Company assumes no obligation to update or revise its
forward-looking statements.
Pier 1 Imports is proud to offer
one-of-a-kind-gotta-have-it-seriously-love-it products that help
our customers tell their stories through home décor. Over the past
50 years we’ve grown from a single store to an omni-channel
retailer reaching the whole of North America. Our customers shop us
online and in store, and interact with us on social media. From the
launch of our Pier 1 PICKS to our world renowned Papasan, we bring
uniqueness and fun to the world of home décor. We are the perfect
place for all your versions of “This is me.” To get inspired or
simply get to know us a little better, visit pier1.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180920005857/en/
The Blueshirt GroupChristine Greany,
858-523-1732christine@blueshirtgroup.com
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