Revenues came in at $405.8 million, a decline of nearly 7 percent year-on-year, with EPS in line at $0.05.
While comps were down 4.3 percent for the home retailer, e-commerce sales grew to 20 percent, up from 17 percent a year prior. Pier 1 set a full-year EPS guidance of $0.24–$0.32 vs. consensus estimate of $0.26.
Pier 1 was able to improve margins by 150 basis points in Q2, but SG&A expenses continue to rise every quarter for the company, creating some concern.
Pier 1 is trying to grow its e-commerce presence by offering shipping to "remove a significant barrier to online conversion and put us on a level playing field for the online-only retailers," said CEO Alexander Smith. The company is also adding a drop ship functionality hoping to add to its e-commerce growth.
At time of publication, shares were up 8.67 percent at $4.64.
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