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Pier 1 Imports – PIR – Declaration of Quarterly Cash Dividend

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Pier 1 Imports, Inc. (NYSE:PIR) reported financial results for the third quarter ended November 24, 2012.

PIR – Third Quarter Financial Highlights

  • Comparable store sales increased 7.9% versus last year’s increase of 7.0%; three-year cumulative comparable store sales increase of 25.1%
  • Gross profit as a percentage of sales up 70 basis points to 43.9%
  • Operating income increased 18%; operating margin expanded to 9.1%
  • Earnings per share of $0.22 (GAAP) and $0.25 (non-GAAP) versus $0.21 last year (see reconciliation below of earnings per share to adjusted non-GAAP earnings per share)

PIR – Third Quarter Results

For the third quarter ended November 24, 2012, the Company reported net income of $23.7 million, or $0.22 per share. Third quarter adjusted net income on a non-GAAP basis, which excludes the estimated impact of Hurricane Sandy and utilizes an estimated 35.6% annual effective tax rate for fiscal 2013 (as described below under Financial Disclosure Advisory), was $27.1 million, or $0.25 per share. For the third quarter ended November 26, 2011, the Company reported net income of $23.0 million, or $0.21 per share. Total sales for the third quarter of fiscal 2013 were $424.5 million, an increase of 10.9% versus $382.7 million in the year-ago quarter. Comparable store sales increased 7.9% during the third quarter on top of last year’s 7.0% gain. Strong comparable store sales results for the period were primarily attributable to increases in store traffic and higher average ticket.

PIR – Year-to-Date Results

For the year-to-date period ended November 24, 2012, the Company reported net income of $67.7 million, or $0.62 per share, which included the tax benefit and reduced accrued interest resulting from the reversal of a portion of the Company’s reserve for uncertain income tax positions in the second quarter of fiscal 2013. For the first nine months of fiscal 2013, adjusted net income on a non-GAAP basis was $65.7 million, or $0.60 per share, and excludes the estimated impact of Hurricane Sandy, utilizes an estimated annual effective tax rate of 35.6%, and excludes the reversal of accrued interest referenced above (as described below under Financial Disclosure Advisory). The Company reported net income of $53.7 million, or $0.47 per share, for the same period last year. Total sales for the first nine months increased 9.1% to $1.153 billion from $1.057 billion in the year-ago period. Comparable store sales for the first nine months increased 7.3% versus a comparable store sales increase of 9.2% in the year-ago period.

PIR – Declaration of Quarterly Cash Dividend

The Company announced that its Board of Directors declared a $0.05 per share quarterly cash dividend on the Company’s outstanding shares of common stock, reflecting a 25% increase from the previous quarterly cash dividend. The $0.05 quarterly cash dividend will be paid on January 30, 2013 to shareholders of record on January 16, 2013. As of December 13, 2012, approximately 106.0 million shares of the Company’s common stock were outstanding.

About Pier 1 Imports – PIR

Pier 1 Imports, Inc. (PIR) is a specialty retailer of decorative home furnishings and gifts. The Company imports merchandise, and sells a range of decorative accessories, furniture, candles, housewares, gifts and seasonal products in its stores. As of February 25, 2012, the Company operated 1,052 stores in the United States and Canada. During fiscal year ended February 25, 2012 (fiscal 2012), the Company opened 15 Pier 1 Imports stores and closed nine stores. The Company operates regional distribution center facilities in or near Baltimore, Maryland; Columbus, Ohio; Fort Worth, Texas; Ontario, California; Savannah, Georgia, and Tacoma, Washington.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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