Pier 1 Imports, Inc. Reports Preliminary Second Quarter Fiscal 2019 Financial Results
- 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
“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
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
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
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Source:
The Blueshirt Group
Christine Greany, 858-523-1732
christine@blueshirtgroup.com