Pier 1 Imports, Inc. (NYSE:PIR) today reported sales results for the third quarter ended November 26, 2011.
Third Quarter Highlights
- Comparable store sales increase of 7.0% versus last year’s increase of 10.2%; three-year cumulative comparable store sales increase of 30.9%
- Merchandise margins expected to be approximately 60% of sales versus 58.9% last year
- Earnings per share expected to be in a range of $0.20 - $0.21; an increase from previous estimate of $0.18 per share
Comparable store sales for the third quarter ended November 26, 2011 increased 7.0% compared to last year’s comparable store sales increase of 10.2% for the third quarter ended November 27, 2010. Total sales for the quarter improved 8.2% to $383 million compared to $354 million in the year-ago quarter. Comparable store sales for the first nine months increased 9.2% compared to a comparable store sales increase of 11.8% in the year-ago period. Total sales for the first nine months increased 9.0% to $1.057 billion from $970 million for the same period last year. The comparable store sales increase for the third quarter was driven primarily by increases in traffic and average ticket. Merchandise margins for the third quarter were strong and will be approximately 60% of sales, up from last year’s third quarter merchandise margins of 58.9% of sales. Third quarter earnings are expected to be in a range of $0.20 - $0.21 per share, up from the Company’s previously reported estimate on November 9, 2011 of $0.18 per share.
Alex W. Smith, President and Chief Executive Officer, commented, “We are very pleased with our third quarter. Our strong assortments and the right balance between regular and promotional pricing drove strong sales and merchandise margin growth. Consequently, earnings per share are now anticipated to be ahead of our previous estimate. Thanksgiving weekend, the gateway to the holiday season, was excellent with comp store sales for our three-day event increasing 10% from last year. This was achieved with modest levels of discount – further testament to the quality of our product offering and store experience. We look forward to discussing our third quarter results and providing an update to the balance of the year during our upcoming conference call.”