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Pier 1 Profit Down 45.9%

Larry Thomas -- Furniture Today, December 23, 2010

FORT WORTH, Texas - Retailer Pier 1 Imports recorded its fifth consecutive quarterly profit in the three months ended Nov. 27, but net income was 45.9% below the figure recorded in the same quarter in 2009.
     Last year's third fiscal quarter included a one-time $55.9 million income tax benefit. Without that, the company would have posted a loss in the 2009 period.
     Sales rose 8.2% to $353.8 million in the most recent quarter and same-store were up 10.2%.
     Alex Smith, president and CEO, said sales and merchandise margins, which were 58.9% of sales, exceeded expectations. Gross margin was 40.7%, an increase of 4.1 percentage points from the same quarter last year.
     Net income for the most recent quarter was $21 million or 18 cents per share. That compares with $38.8 million or 37 cents per share in the same period last year.
     For the nine months ended Nov. 27, sales were $969.9 million, an increase of 8.4% from same period in 2009.
     Nine-month net income was $43.1 million or 37 cents per share. That compares with income of $52.3 million or 55 cents per share in the same period last year. The first nine months of 2009 included the $55.9 million income tax benefit, as well as a $49.7 million gain on the retirement of debt.

Pier 1 Imports
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
Quarter ended 11/27	2010	2009	Change
Sales	$353,759,000	$327,075,000	8.2%
Operating income	26,545,000	8,240,000	222.1%
Net income (a)	21,004,000	38,813,000	(45.9%)
Earnings per share	0.18	0.37	(51.4%)
9 months ended 11/27	2010	2009	Change
Sales	$969,887,000	$894,878,000	8.4%
Operating income	60,000,000	(21,956,000)	-
Net income (b)	43,058,000	52,347,000	(17.7%)
Earnings per share	0.37	0.55	(32.7%)
(a) Includes income tax benefit of $55.9 million in 2009. (b) Includes income tax benefit of $55.9 million, litigation recovery of $10 million, and a $49.7 million gain on retirement of debt in 2009.

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Pier 1 Imports posts profit as sales rise 8.2%

Dec 16, 2010

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