FORT WORTH, Texas -- (Business Wire)
Pier 1 Imports, Inc. (NYSE:PIR) today reported sales results for the
third quarter ended November 24, 2012.
Third Quarter Highlights
Comparable store sales increased 7.9% on top of last year’s 7.0% gain;
three-year cumulative comparable store sales increased 25.1%
Total sales increased 10.9% to $425 million
Gross profit expected to be approximately 43.9% of sales versus 43.2%
of sales last year
Earnings per share expected to be approximately $0.22 (GAAP) and $0.25
(non-GAAP) versus $0.21 in the third quarter of last year (see
reconciliation below of expected earnings per share to expected
adjusted non-GAAP earnings per share)
Comparable store sales for the third quarter ended November 24, 2012
increased 7.9% compared to an increase of 7.0% for the third quarter
ended November 26, 2011. Total sales for the quarter improved 10.9% to
$425 millioncompared to $383 million in the year-ago quarter.
Strong comparable store sales results for the quarter were primarily
attributable to increases in store traffic and higher average ticket.
Third quarter merchandise margins at the store level are expected to be
essentially flat year-over-year. Gross profit is expected to be
approximately 43.9% of sales for the third quarter versus 43.2% of sales
for the third quarter of last year. Marketing expenses as a percentage
of sales are expected to be slightly higher versus the year ago period.
The Company anticipates that full year spending will approximate 5% of
sales, in line with its previously stated plan, and believes this level
of investment will continue to drive strong traffic and conversion.
Comparable store sales for the first nine months of fiscal 2013
increased 7.3% versus a comparable store sales increase of 9.2% in the
year-ago period. Total sales for the first nine months increased to
$1.153 billion from $1.057 billion for the same period last year.
Earnings per share for the third quarter of fiscal 2013 are expected to
be approximately $0.22 (GAAP) and $0.25 (non-GAAP) compared to $0.21 in
the third quarter last year. The non-GAAP expected adjusted earnings per
share excludes the estimated impact of Hurricane Sandy and utilizes an
estimated 35.6% annual effective tax rate for fiscal 2013 (see
reconciliation below under Financial Disclosure Advisory). The Company
has estimated the impact of lost sales and costs associated with
Hurricane Sandy to be approximately $0.02 per share, net of tax, for the
third quarter of fiscal 2013. In the days immediately following the
storm, up to 225 stores were closed, primarily due to power outages in
affected areas and 50 stores operated on reduced hours. All stores were
reopened and fully operational by the end of the second week in
November, with the exception of one store located in Long Island, New
York, which remains closed due to storm damage.
Alex W. Smith, President and Chief Executive Officer, commented, “While
a large number of our stores experienced closure and disruption due to
Sandy, our focus was directed first and foremost on the safety and
well-being of our associates and others in need. I am extremely proud of
and grateful to our associates for their efforts to reopen our stores
quickly, even though their own lives were, and in some cases still are,
Smith continued, “We’re pleased to deliver strong sales growth this
quarter, as customers responded particularly well to our fall
assortments. Excluding the impact of Hurricane Sandy, we estimate that
third quarter comp store sales would have increased slightly over 9%.”
“We have had a terrific start to the holiday season, including a very
strong Thanksgiving weekend, and believe the business is ideally
positioned with a compelling merchandise assortment and multiple ways to
shop the Pier 1 Imports brand, including both in-store and online. We
look forward to discussing our third quarter results and providing an
update on holiday business during our upcoming conference call.”
Third Quarter Conference Call Information and December Sales Release
The Company will announce fiscal 2013 third quarter financial results
prior to market open on Thursday, December 13, 2012 and will host a
conference call later that morning at 10:00 a.m. Central Time to discuss
the results. Investors will be able to connect to the call through the
Company’s website at www.pier1.com.
The conference call can be accessed by linking through to the “Investor
Relations” page to the “Events” page, or you can listen to the
conference call by calling 1-800-498-7872, or if international,
1-706-643-0435. The conference ID number is 59879356.
The Company will announce fiscal 2013 December sales on January 3, 2013.
Financial Disclosure Advisory
This release references non-GAAP information for the three months ended
November 24, 2012 as shown in the table below.
Three Months Ended
November 24, 2012
Expected Earnings per Share (GAAP)
Estimated Impact of Hurricane Sandy, net of tax
Difference of Income Tax Provision at Estimated 35.6% Annual
Effective Tax Rate
Expected Adjusted Earnings per Share (non-GAAP)
The Company reports its financial results in accordance with U.S.
generally accepted accounting principles (GAAP). The Company believes
that the non-GAAP financial measure included in this press release
allows management and investors to understand and compare the Company’s
earnings per share results in a more consistent manner for the three
months ended November 24, 2012. The non-GAAP measure should be
considered supplemental and not a substitute for the Company’s earnings
per share results that will be recorded in accordance with GAAP for the
Management’s expectations and assumptions regarding future results are
subject to risks, uncertainties and other factors that could cause
actual results to differ materially from the anticipated results or
other expectations expressed in the forward-looking statements included
in this press release. Any forward-looking projections or statements
should be considered in conjunction with the cautionary statements and
risks contained in the Company’s Annual Report on Form 10-K. Refer to
the Company’s most recent SEC filings for any updates concerning these
and other risks and uncertainties that may affect the Company’s
operations and performance. The Company assumes no obligation to update
or revise its forward-looking statements even if experience or future
changes make it clear that any projected results expressed or implied
will not be realized.
Pier 1 Imports, Inc. is the original global importer of imported
decorative home furnishings and gifts. Information about the Company is
available on www.pier1.com.
Pier 1 Imports, Inc.
Cary Turner, 817-252-8400
Source: Pier 1 Imports, Inc.
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