Pier 1 earnings skyrocket 83.8% in first quarter
Increased traffic, larger tickets lead to 9.3% increase in total sales
Jay McIntosh -- Furniture Today, June 16, 2011
FORT WORTH, Texas — Pier 1 Imports' earnings soared 83.8% in the fiscal first quarter ended May 28 as same-store sales rose 10.2%, on top of strong growth a year earlier, the Fort Worth-based retailer reported today.
Total sales rose 9.3% to $334.6 million, primarily the result of gains in store traffic, conversion rate and average sales ticket, the company said. Earnings of $14.1 million or 12 cents per share were up from $7.7 million or 7 cents per share a year earlier.
"We continue to see strength and sustainability in all aspects of our business - top line growth, strong merchandise margins, prudent cost controls, operating margin improvement, a strong balance sheet and ongoing cash generation. All have benefited from the creativity and rigor embedded in our organization," said Alex Smith, president and CEO.
He also noted that on June 6 the retailer soft-launched Pier 1 To-Go, an online service that lets consumers browse Pier1.com, order what they like, and pick it up at a store near them.
The 10.2% comparable-store sales gain in the quarter was on top of a 14.3% increase in the same period a year earlier, the company said.
Merchandise margins improved to 59.8% of sales from 58.6% a year earlier and the gross profit margin rose to 40.1% of sales from 37.4%.
Pier 1 said it bought back 264,400 shares of its stock in the first quarter for $3.1 million, at a weighted average cost of $11.82 per share, and since the end of the quarter purchased an additional 951,812 shares for $10.7 million, at an average cost of $11.25.
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Pier 1 Earnings Jump 83.8%
Jul 8, 2011
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