Pier 1 sales up 13.3%, profits rise 29.1% in yr.
By Clint Engel -- Furniture Today, April 13, 2003
Fort Worth, Texas — Despite a tough fourth quarter, Pier 1 Imports finished its fiscal year ended March 1 with a 29.1% increase in net income to $129.4 million and a 4.7% same-store sales gain.
Total sales for the giant home furnishings specialty retailer grew 13.3% to $1.75 billion during what Marvin Girouard, chairman and chief executive officer, called an "outstanding year for our company."
"We achieved record earnings in a period that was challenging for retailers, and finished the year with a very strong balance sheet, with inventories on plan and a solid cash position," he said.
Pier 1 has aggressive growth plans, which includes opening 115 new Pier 1 stores in North America, possibly including two to four larger-format units.
The company also will add a net 20 to 25 Cargokids stores, doubling the store count of the youth bedroom specialty format.
Pier 1 will close or relocate 30 to 35 stores this year. Its total selling square footage is expected to increase 10%. It ended the fiscal year with 1,074 stores worldwide, including 17 in Mexico, seven in Puerto Rico and 25 in the United Kingdom operating as The Pier.
For the fourth quarter, Pier 1's net income was up 10.2% from a year earlier to $54 million, and sales grew 8.9% to $521 million. Same-store sales increased 0.9% as the company was affected by declining consumer confidence, geopolitical uncertainty and a shorter holiday sales period, Girouard said. The retailer also was up against a tough same-store sales comparison with the 10.2% increase in the year-ago quarter.
Girouard said that in a challenging year for retail, Pier 1 did better than most.
In a conference call with the investment community, he said Pier 1 has been keeping an eye on developments involving SARS, or Severe Acute Respiratory Syndrome, and has postponed some travel by managers and buyers to areas including China, Hong Kong, Malaysia and Vietnam.
"Even with the curtailment of travel for our merchants, the flow of merchandise will not be impacted, and there has been no slowdown in production," Girouard said.
Pier 1 will add two newspaper inserts for a total of at least 12 this year, supplementing its successful national television advertising campaign. The company has an agreement through this year for actor Kirstie Alley to continue appearing in the TV ads.
"She certainly has delivered," Girouard said, but added the company is looking at new options and may or may not bring Alley back.
Pier 1 reiterated its earning guidance for the current year at $1.44 to $1.50 per share, compared with $1.36 for the year just ended.
Same-store sales are difficult to project, but comparisons should improve as the year progresses, Girouard said. Same-store sales are expected to be down 4% to 8% in the first quarter, with gains in the 1%-3% range in the second and third quarters and a mid-single-digit increase in the fourth quarter.
| Quarter ended 3/1 | 2003 | 2002 | Change |
|---|---|---|---|
| Sales | $521,035,000 | $478,561,000 | 8.9% |
| Operating income | 97,505,000 | 88,447,000 | 10.2% |
| Net income | 54,032,000 | 49,016,000 | 10.2% |
| Earnings per share | 0.57 | 0.51 | 11.8% |
| Year ended 3/1 | 2003 | 2002 | Change |
| Sales | $1,754,867,000 | $1,548,556,000 | 13.3% |
| Operating income | 251,086,000 | 201,634,000 | 24.5% |
| Net income | 129,386,000 | 100,209,000 | 29.1% |
| Earnings per share | 1.36 | 1.04 | 30.8% |
Pier 1 sales rise 1.8% in fourth quarter
03/04/2010Pier 1 reports $38.8M profit
03/13/2010Pier 1 posts $10 million 4Q loss
04/05/2006Pier 1 4Q net income jumps 34%, sales up 11%
04/27/2002
