Pier 1 Imports Q4 Profit Drops; Guides FY15; Updates Three Year Growth Plan

(RTTNews) - Pier 1 Imports, Inc. (PIR), a specialty retailer of decorative home furnishings and gifts, posted lower fourth-quarter net income of $42.6 million, or $0.41 per share, compared with $61.7 million, or $0.58 per share in the 14-week period ended March 2, 2013. On a non-GAAP basis, adjusted net income for the fourth quarter of fiscal 2013, that utilized a 35.6% annual effective tax rate, was $64.2 million, or an adjusted $0.60 per share. On average, 12 analysts polled by Thomson Reuters expected earnings per share of $0.41 for the quarter. Analysts' estimates typically exclude one-time items.

The firm clocked net sales of $515.8 million in the fourth quarter, versus $551.6 million in the year-ago quarter, whereas nine analysts estimated revenues of $512.76 million. Comparable-store sales for the 13-week period slid 4.6% compared with the 13-weeks ended February 23, 2013. Adjusting for the shifted calendar in fiscal 2013, 13-week comparable-store sales went up by 0.6% over the 13-week period ended March 2, 2013.

In addition, the firm issued its fiscal 2015 guidance, expecting per-share earnings of $1.16 - $1.24, utilizing a fully diluted share count of 96 million shares, representing year-over-year growth of 15% - 23%; and comparable-store sales growth in the mid single-digit range. Street is currently looking for earnings of $1.23 per share, on $1.91 billion in revenues for the year.

Also, the company's board has authorized a new $200 million common stock share repurchase program, effective upon completion of its current $200 million share repurchase program, which was authorized in October 2013. Further, Pier 1 Imports reported launching a transaction seeking commitments for a $200 million senior secured term loan B facility due in 2021.

Owing to the challenging fourth quarter and lower than anticipated fiscal 2014 results, the firm is updating its Three Year Growth Plan, now projecting sales per retail per square foot of $225 and operating margins of around 11% - 11.5% by the end of fiscal 2016. This compares with the prior expectations for sales per retail square foot of $225 and operating margins of 12% by fiscal 2015 end. Pier 1 Imports said it is on track to achieve e-Commerce sales representing at least 10% of total sales by the end of fiscal 2016.