Forth Worth, Texas -- Pier I reduced its fourth quarter and fiscal 2014 profit forecasts, blaming the negative impact of severe winter weather. The home furnishings chain is the latest in a series of retailers to credit the extremely cold weather as the main reason for its reduced outlook.
“Since our holiday sales update on January 9th we have continued to experience significant disruption from adverse weather in many of our major markets, said Alex W. Smith, president and CEO. “This has resulted in considerably softer store traffic, as well as some temporary store closings, which further pressured fourth quarter sales and merchandise margin. Our fourth quarter results are frustrating and disappointing.”
Smith said that online sales at Pier 1 outperformed company expectations, accounting for 5% of total sales for the quarter and posting traffic of 1.9 million visitors per week.
Pier 1 now anticipates fourth-quarter revenue is projected in a range of about $512 million to $514 million.
For the full year, Pier 1 forecasts that its revenue will increase about 5.5%. The company previously anticipated revenue would rise by a mid- to high-single digit percentage rate.