Pier 1 Imports shares were 7% higher Tuesday morning after the importer of home decor and furniture said late Monday that it expects Q3 results to be at the high-end of its previously issued outlook.
The company previously issued outlook of $0.09 to $0.15 adjusted earnings per share, 3% to 1% decline in comparable sales, and 4% to 2% decline in net sales.
“The election appears to have disrupted sales during the first ten days of November but we anticipate that sales trends will improve as we move through the month. We are seeing strength in our gross margin — a result of great merchandise, balanced promotional activity and efficiency improvements in the supply chain. Based on trends so far this quarter, we now expect our fiscal Q3 results to be at the high-end of our previously guided ranges for comparable and net sales, merchandise margin, earnings per share and adjusted earnings per share,” said CEO Alex Smith.
“The critical days of the holiday season are still ahead of us and we are highly focused on strong execution of our holiday plans. We are seeing strength in all of our holiday categories, which bodes well for both sales and merchandise margin. Over the longer term, we will focus on the creation of unique merchandise assortments which define the Pier 1 Imports brand and continue to enhance our already significant omni-channel capabilities to help drive sales, expand market share and improve profitability.”
The company plans to update its Q4 and 2017 financial guidance when it reports Q3 results in mid-December.