Pier 1 Imports, Inc. announced consolidated unaudited earnings results for the quarter and nine months ended November 25, 2017. For the quarter, the company reported net sales of $469,161,000 as compared to $475,901,000 a year ago. Operating income was $13,448,000 as compared to $22,253,000 a year ago. Income before income taxes was $11,085,000 as compared to $19,578,000 a year ago. Net income was $7,381,000 as compared to $13,577,000 a year ago. Diluted and basic earnings per share were $0.09 as compared to $0.17 a year ago. Adjusted net income in the third quarter of last year was $17.6 million or $0.22 per share and excludes cost and the related tax benefit associated with the departure of former CEO. EBITDA came in at $26.7 million versus $35.9 million a year ago.

For the period, the company reported net sales of $1,286,293,000 as compared to $1,300,094,000 a year ago. Operating loss was $213,000 as compared to operating income of $10,106,000 a year ago. Loss before income taxes was $7,629,000 as compared to income before income taxes of $2,606,000 a year ago. Net loss was $3,428,000 as compared to net income of $3,488,000 a year ago. Diluted and basic loss per share were $0.04 as compared to diluted and basic earnings per share of $0.04 a year ago. Net cash provided by operating activities was negative $7,038,000 as compared to $5,073,000 a year ago. Capital expenditures was $41,057,000 as compared to $32,019,000 a year ago.

For the fourth quarter, the company expects the following: company comparable sales down 3.5% to 1.5%; net sales growth of 1% to 3%; merchandise margin of approximately 54%, reflecting a continuation of the promotional intensity it experienced in the third quarter and into December; earnings per share in the range of $0.14 to $0.22; and adjusted earnings per share in the range of $0.16 to $0.24, which excludes the tax impact from regulatory costs related to an ongoing CPSC matter.

Full year guidance is being provided in the 53-week basis and includes the following expectations: net sales approximately flat; merchandise margin of approximately 56.5%; interest expense in the range of approximately $13 million; earnings per share in the range of $0.10 to $0.18; adjusted earnings per share in the range of $0.17 to $0.25, excluding two items, legal costs net of tax related to a California wage and hour matter recorded during the second quarter and regulatory costs recorded in the second quarter for an ongoing CPSC matter as well as the related income tax effects in the second, third and fourth quarters of this year; and effective tax rate for the full year of approximately 41%, which reflects the negative impact from the nondeductibility of the CPSC expense. It expects capital expenditures of approximately $60 million. On a comparable 52-week basis versus fiscal 2017, it is forecasting company comparable sales down 1% to flat for the full year in fiscal 2018.