Pier 1 Imports has announced preliminary financial results for the fourth quarter and fiscal year ended February 24 that suggest it ended the year with relative strength.
The company expects fourth quarter earnings per share to come in at a range from 31 cents to 33 cents per share, compared with prior guidance of 26 cents to 30 cents per share. It anticipates fourth quarter adjusted earnings per share to come in at a range from 32 cents to 34 cents per share compared with prior guidance of 28 cents to 32 cents per share.
The company’s adjusted earnings per share guidance excludes fourth quarter estimated costs of about $2 million related to the departure of Pier 1’s former CEO.
Fourth quarter net sales decreased 2.6% compared to the same period a year ago as the average number of stores declined approximately 3%, the company maintained.
Company comparable sales, including e-commerce, increased 0.2%, the company stated, as digital sales grew 28% versus the same period a year previous and represented 19.5% of net sales in the fourth quarter.
The company expects full year earnings to come in at a range of 35 cents to 37 cents per share compared with prior guidance of 30 cents to 34 cents per share. It anticipates full year adjusted earnings per share to come in at a range from 42 cents to 44 cents per share compared with prior guidance of 37 cents to 41 cents. Adjusted earnings per share guidance excludes full year estimated costs of about $10 million related to the CEO departure.
Full fiscal year net sales decreased 3.4% compared to the previous fiscal year as the average number of stores declined approximately 3% and comps, including e-commerce, decreased 1%. E-commerce sales gained 20% versus the year before and represented 20% of net sales in the year.
Jeffrey Boyer, Pier 1 evp and CFO, said, “Our company comparable sales were in line with our previous guidance and reflect strong execution of our merchandising, marketing and promotional strategies. We are raising our estimates for earnings per share and adjusted earnings per share for the fourth quarter and full year as a result of a number of key factors. Improved effectiveness of our promotional and discounting initiatives along with a continuation of our supply chain efficiencies drove another quarter of significantly higher merchandise margin. At the same time, our ongoing cost containment and efficiency programs throughout the company resulted in better than expected operating expense performance.”
