Pier 1 Imports Inc (NYSE:PIR) shares slumped further in premarket deals after falling more than 20% late Wednesday on news that it was cutting its fiscal 2018 fourth quarter and full year 2018 guidance. And it closed Thursday nearly 30% down.
That was not the only bad news. The company’s third quarter failed to impress the market, missing per share earnings expectations after it was hit by the storms.
Third quarter numbers disappoint
In the quarter, the company earned US$7.4mln, or 9 US cents a share, compared with US$13.6mln, or 17 US cents a share, a year ago.
Sales dipped to US$469mln from US$476mln previously.
The market had pencilled in earnings of 12 US cents a share on sales of US$467mln.
Pier 1 also slashed its EPS guidance for the full year to 10 US cents and 18 US cents, from the previous guidance of between 31 US cents and 41 US cents.
Adjusted earnings per share guidance was also lowered to between 17 US cents and 25 US cents, compared to 38 US cents to 48 US cents guided previously.
Three year strategic plan
“We are building a three-year strategic plan to transform the business, and are beginning to set things in motion,” chief executive Alasdair James said in a statement.
A detailed plan to lift the brand will be unveiled early next year, the home furnishings retailer added.
In premarket, its shares dipped 26.71% at US$5.84. The firm closed Thursday down almost 30% to US$4.12.