FORT WORTH, Texas–Based on current trends and a cautious view of the Thanksgiving business, Pier 1 Imports’ third-quarter comparable-store sales are expected to fall 16 percent to 18 percent, according to guidance provided by the company for the third quarter ended Nov. 29.
Earnings before income tax, depreciation and amortization before special charges is now forecasted to be negative $16 million to $ 20 million.
Pier 1 is hosting an event for shareholders and members of the buy- and sell-side analyst community today to provide an update on the its business.
“The significant slowdown in consumer spending continues to affect our business,” said Alex Smith, president and chief executive officer, in a statement.
“The deterioration in customer traffic that we reported for September continued into October, resulting in traffic that was down 10 percent below last year,” Smith said. “Customers who are visiting our stores continue to respond well, and we see meaningful improvements in both conversion rate and units per transaction. These increases are offset by the fact customers primarily shopped for ‘small treats,’ such as Halloween and holiday decor, and smaller home furnishings and furniture purchases, resulting in a lower average ticket.”