Pier 1 Imports reports sales up 8% in 3rd quarter, 9% YTD
David Perry -- Furniture Today, December 15, 2011
Pier 1 Imports reported net income of $23 million for the third quarter ended Nov. 26, 2011, compared to $21 million for the same quarter last year. Total sales for the third quarter were $382.7 million, an 8.2% increase from $353.8 million in the year-ago quarter. Comparable store sales increased 7% during the third quarter compared to last year's comparable store sales increase of 10.2% for the same period.
Merchandise margins for the quarter were 60.5% of sales compared to 58.9% of sales in the same period last year. Gross profit for the quarter improved to $165.5 million, or 43.2% of sales, from $144.1 million, or 40.7% of sales in the third quarter of last year.
For the year-to-date period ended Nov. 26, 2011, the company reported net income of $53.7 million, which included an income tax provision of $28.9 million. Net income for the same period last year was $43.1 million, which included an income tax provision of $0.9 million due to the Company's federal net operating loss tax carry-forward position. Income before income taxes was $82.7 million for the first nine months compared to income before income taxes of $43.9 million for the same period last year.
Total sales for the first nine months increased 9% to $1.057 billion from $969.9 million in the year-ago period. Comparable store sales for the first nine months increased 9.2% compared to last year's comparable store sales increase of 11.8% in the year-ago period.
Alex W. Smith, president and CEO, said, "We are very pleased with the results of our third quarter. Our strong product assortments, the right balance of regular and promotional pricing and a great store experience are driving robust sales and merchandise margin growth. December sales so far are strong and we expect this trend to continue for the final ten days leading up to Christmas. Our growth plan is on track as we execute our business model with increasing finesse. Operating margins and sales per retail square foot continue to grow. Pier 1 To-Go, which allows customers to order online and pick-up and pay in-store, is positively impacting top line sales and our new e-commerce enabled site will launch next summer. We look forward to discussing our third quarter results in more detail and providing updates to the balance of the year and our three-year growth plan initiatives later this morning on our conference call."
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