Pier 1 Imports Sees Q4 Profit More Than Double
FORT WORTH (AP) - Pier 1 Imports Inc.'s fiscal fourth-quarter profit more than doubled as more customers showed up in its stores and a one-time tax benefit boosted its bottom line.
The home decor company provided a fiscal 2013 earnings forecast that suggested it could miss analysts' current expectations. It also increased some of its three-year growth goals.
Its shares rose 4 cents to $18.30 in early premarket trading.
Pier 1 reported net income of $115.2 million, or $1.04 per share, for the three months ended Feb. 25. That's up sharply from $57.1 million, or 48 cents per share, a year earlier.
Taking out the one-time tax benefit of about $33.8 million, earnings were 48 cents per share, matching the expectations of analysts polled by FactSet.
Revenue rose 12 percent to $476.8 million from $426.6 million, beating Wall Street's estimate of $474.5 million.
Revenue at stores open at least a year climbed 10.3 percent. This metric is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
For the year, Pier 1 reported net income of $168.9 million, or $1.48 per share, up from $100.1 million, or 85 cents per share, in the prior year. Annual revenue climbed 9 percent to $1.53 billion from $1.4 billion.
Revenue at stores open at least a year increased 9.5 percent.
President and CEO Alex Smith said in a statement that Pier 1 is boosting some of its three-year goals. The retailer now anticipates recording sales of $225 per retail square foot, up from $200 per retail square foot, by fiscal 2015. It also raised its operating margin goal for the three-year period to at least 12 percent, up from 10 percent.
Pier 1 said Thursday that it will launch its Pier 1 To-You web site, which allows customers to shop online, in late July. The retailer expects online sales will contribute at least 10 percent of total revenue by fiscal 2016.
It also declared a quarterly dividend of 4 cents per share. The dividend will be paid on May 2 to shareholders of record on April 18.
Pier 1 anticipates fiscal 2013 earnings of $1.06 to $1.12 per share. The Fort Worth, Texas company foresees revenue at stores open at least a year rising by the mid-single digits.
Analysts predict earnings of $1.12 per share.
Pier 1 said it plans to fully remodel about six to eight stores in fiscal 2013 and refurbish about 100 existing stores. It anticipates opening about 20 new stores during the fiscal year compared with 15 new stores in fiscal 2012. The company added that it is still on pace to open approximately 80 to 100 new stores and close about 30 to 50 existing locations by fiscal 2016's end.
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