Successful merchandising and marketing initiatives and comp store sales growth prompted Pier 1 Imports to adjust its third quarter guidance upward, to the high end of previously reported ranges.

In late September Pier 1 reported it anticipated comparable sales contraction—including e-commerce—of approximately 3 percent to 1 percent as guidance for the third quarter of fiscal 2017, as well as net sales contraction of approximately 4 percent to 2 percent.

“Based on trends so far this quarter, we now expect our fiscal third quarter 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 Alex W. Smith, president and CEO. “Our merchandise, promotional and marketing initiatives are resonating well with our customers. Comparable sales quarter-to-date through October grew at a low single-digit rate. The election appears to have disrupted sales during the first 10 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.”

Pier 1 will update its fourth quarter and full-year fiscal 2017 financial guidance when it reports results for the third quarter of fiscal 2017 in mid-December.

“The critical days of the holiday season are still ahead of us and we are highly focused on strong execution of our holiday plans,” Smith added. “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 omnichannel capabilities to help drive sales, expand market share and improve profitability.”

(Source: hfndigital.com  Author: Allison Zisko)