Pier 1 Imports Q1 Profit Down; Cuts FY15 EPS View - Quick Facts

(RTTNews) - Pier 1 Imports, Inc. (PIR), importer and specialty retailer of decorative home furnishings and gifts, reported that its net income for the first quarter ended May 31, 2014 dropped to $15.1 million or $0.16 per share, from last year's $20.3 million or $0.19 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales for the first quarter were $419.1 million, a 6.1% increase versus $394.9 million in the year-ago quarter. Wall Street expected revenues of $422.81 million. Company comparable sales increased 6.3% during the first quarter, attributable to increases in total brand traffic, conversion and higher average ticket.

In response to the early success of its '1 Pier 1' omni-channel strategy, the company announced that it now expects to achieve e-Commerce sales of at least $200 million in fiscal 2015, and e-Commerce sales of at least $400 million in fiscal 2016. This compared to previous expectations for e-Commerce sales to represent 10% of total sales by the end of fiscal 2016.

The company reiterated its previously stated goals for sales per retail square foot of $225 and operating margins of approximately 11% to 11.5% by the end of fiscal 2016.

Looking ahead for fiscal 2015, the company now expects earnings per share to be in the range of $1.14 to $1.22, representing year-over-year growth of 13% to 21%. This compared to previous guidance of $1.16 to $1.24. Analysts project annual earnings per share of $1.21.

The company expects annual comparable sales growth, which includes e-Commerce, to be in the high-single digits. The company said in April that it expected Comparable-store sales growth to be in the mid single-digit range.