Struggling home accessories retailer Pier 1 Imports Inc. said its fiscal losses have widened and it could face delisting if its stock price does not improve. (Photo by Scott Olson/Getty Images)
Pier 1 Imports Inc. is optimistic about the holiday season but projects that a key third-quarter revenue metric will grow at a slower pace than a year ago.
The home decor company said Tuesday that it expects revenue from stores open at least a year to rise 8 percent to 10 percent for the quarter ending Nov. 27. The prior-year period reported a 13.7 percent increase.
This figure is a key indicator of a retailer's health because it measures results at existing stores rather than newly opened ones.
Pier 1 said it is seeing better traffic, higher conversion and increases in average ticket for the first two months of the third quarter.
President and CEO Alex W. Smith said in a statement that the company based in Fort Worth, Texas is adding about $3 million of additional store payroll and marketing in the quarter in order to take advantage of and maintain strong traffic and maximize sales.
"We are upbeat on the start of our holiday selling season and look forward to the couple of months that lie ahead," he said.
Pier 1 will report its third-quarter sales on Dec. 2.