Pier 1 Imports Inc. reported third-quarter revenue that topped analysts' expectations and raised its fiscal third-quarter earnings forecast on Thursday as the home decor company said a balance between regular and promotional pricing helped drive sales growth.
The Fort Worth, Texas, company said it expects earnings for the quarter, which ended Nov. 26, to be between 20 cents and 21 cents per share. That's up from an estimate it made last month for earnings of 18 cents per share.
It said revenue grew more than 8 percent to $383 million in the quarter.
Analysts surveyed by FactSet expect, on average, earnings of 18 cents per share on $380.3 million in revenue.
The company said revenue at stores open at least a year climbed 7 percent in the quarter, driven by increases in traffic and the average transaction. That compares to a 10 percent increase in last year's quarter. This is an important metric of a retailer's health because it measures results at established stores rather than newly opened ones.
Pier 1 said it had an "excellent" Thanksgiving weekend, which it called the gateway to the holiday shopping season. It said revenue at stores open at least a year climbed 10 percent over the three-day period compared to last year.
The company will announce its full results for the quarter on Dec. 15.
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Shares of Pier 1 slipped 5 cents to $13.54 in morning trading Thursday while the Dow Jones industrial average slipped.
