Pier 1 Imports Inc (NYSE:PIR) took a few steps back in its latest quarterly earnings report as the company missed expectations.
investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-768×254.jpg 768w, investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-1024×339.jpg 1024w, investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-65×22.jpg 65w, investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-200×66.jpg 200w, investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-400×132.jpg 400w, investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-116×38.jpg 116w, investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-100×33.jpg 100w,https://investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-150×50.jpg 150w, investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-78×26.jpg 78w, investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-800×265.jpg 800w, investorplace.com/wp-content/uploads/2017/12/pier-1-imports-pir-1-170×56.jpg 170w” sizes=”(max-width: 300px) 100vw, 300px” />The company experienced a decline in same-store sales to go along with the earnings miss, prompting it to halt dividend payments in order to improve its balance sheet. Adjusted earnings tallied up to $15 million, or 19 cents per share for the quarter.
The figure was well below the year-ago total of $27 million, or 33 cents per share in adjusted earnings. The Wall Street consensus estimate was calling for Pier 1 to bring in adjusted earnings of 20 cents per share, according to data compiled by FactSet.
On the revenue front, the company brought in $512 million, a 3.1% decline compared to the $528 million from the year-ago quarter. Analysts were calling for Pier 1 to rake in $540 million in sales, according to data compiled by FactSet.
The company’s comparable-store sales also fell by ab out 7.5%, which was much steeper than analysts’ expectations of a 2.7% drop. Pier 1 added that halting its dividend program “will enable the company to allocate greater resources toward implementing its three-year strategic plan to drive sales and earnings growth and increase shareholder value.”
Stopping the quarterly cash dividend of 7 cents per share is projected to add roughly $22 million of incremental cash flow in fiscal 2019, the company said.
PIR stock plummeted more than 14.4% after the bell Wednesday on the company’s quarterly earnings woes.