Pier 1 Imports reported another disappointing quarter on Wednesday and reduced its guidance again, citing a decline in “casual” in-store shoppers.
The Fort Worth-based home furnishings retailer said net income for the three months ended Nov. 28 was $10.9 million, down about 40 percent from $17.9 million a year earlier. Sales decreased by 2.5 percent to $472.5 million and same-store sales fell by 0.7 percent.
Following what CEO Alex Smith called “a moderate start to the holiday shopping season,” the company again lowered its profit forecast for the full year to a range of 42 cents to 46 cents a share, down from a forecast as high as 64 cents, according to a statement.
“The decline of the casual in-store shopper continues to challenge us,” Smith said in a statement.
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The results were released after the close of regular trading on Wall Street. Pier 1 shares (ticker: PIR) plunged 85 cents, or 14 percent, in after-hours trading to $5.10 a share.
Pier 1, known for its papasan chairs and home accents, is facing more competition to cut prices even as its online business grows. The company said e-commerce business grew to 16 percent of sales in the third quarter, and the company was operating 1,055 stores.
“We remain confident in our ‘1 Pier 1’ omni-channel strategy, particularly as the retail climate continues to undergo dynamic change,” Smith said, referring to the company’s strategy of coordinating sale and pickup between online and brick-and-mortar locations.
Staff writer Steve Kaskovich contributed to this report, which includes material from Bloomberg News.