Pier 1 Imports earnings climb 15.7% in second quarter
Cost controls, 9.6% sales gain help retailer
Larry Thomas -- Furniture Today, September 15, 2011
FORT WORTH, Texas — Retailer Pier 1 Imports said its profits rose 15.7% in the second fiscal quarter ended Aug. 27 as the company continued to drive sales increases and keep costs under control.
The retailer, which has about 1,050 stores in the U.S. and Canada, reported net income of $16.6 million or 14 cents per share. That compares with $14.4 million or 12 cents per share in the same quarter last year.
Last year's second quarter was aided by application of an accounting rule known as net operating loss carryforwards, which nearly eliminated the company's income tax. In the most recent quarter, the retailer's income tax provision was nearly $9 million.
Net sales rose 9.6% to $339.6 million, while same-store sales were up 10.8%.
"We are very pleased with the results of our second quarter," said Alex Smith, president and CEO. "Sales growth and merchandise margins remain strong, and we continue to demonstrate the strength and sustainability of our business."
Smith said merchandise margins were 59.4% - an increase of 1.3 percentage points from last year's second quarter - while gross margin rose 2.7 percentage points to 39.6%
"Our growth plan is firmly on track, and we have returned value to our shareholders through the completion of our $100 million share repurchase program," he added. "It is hard to predict how the economy will fare over the next several months, but we fully expect our business to be successful through the fall and holiday selling season."
For the first six months of the fiscal year sales were $674.2 million, an increase of 9.4% from the same period in 2010.
Six-month profits soared 39.4% to $30.7 million or 26 cents per share. In the first half of last year, net income was $22.1 million or 19 cents per share.
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Pier 1 Earnings Up 15.7% in 2q
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