Pier 1 Imports, Inc. (NYSE:PIR) today reported sales results for the second quarter ended August 25, 2012.
Second Quarter Highlights
- Comparable store sales increased 6.7% on top of last year’s 10.8% gain; three-year cumulative comparable store sales increased 28.7%
- Total sales increased 8.3% to $368 million
- Gross profit expected to be approximately 41.2% of sales versus 39.6% of sales last year
- Earnings per share expected to be approximately $0.24 (GAAP) and $0.19 (non-GAAP) versus $0.14 in the second quarter of fiscal 2012 (see reconciliation below of expected earnings per share to adjusted expected non-GAAP earnings per share)
Comparable store sales for the second quarter ended August 25, 2012 increased 6.7% compared to an increase of 10.8% for the second quarter ended August 27, 2011. Total sales for the quarter improved 8.3% to $368 million compared to $340 million in the year-ago quarter. Comparable store sales for the first six months of fiscal 2013 increased 7.0% versus a comparable store sales increase of 10.5% in the year-ago period. Total sales for the first six months increased to $729 million from $674 million for the same period last year. Merchandise margins for the second quarter are expected to be approximately 60.1% of sales, up from last year’s second quarter merchandise margins of 59.4% of sales. Gross profit is expected to be approximately 41.2% of sales for the second quarter versus 39.6% of sales for the second quarter of last year.
Earnings per share for the second quarter of fiscal 2013 are expected to be approximately $0.24 (GAAP) and $0.19 (non-GAAP) compared to $0.14 in the second quarter last year. During the second quarter of this year, the Company reversed a reserve for uncertain income tax positions for which the statute of limitations expired. In addition, the Company reversed accrued interest related to this uncertain tax position. The Company’s effective tax rate for the fiscal year is expected to be approximately 35.6% of pre-tax income. Utilizing an effective tax rate of 35.6% and excluding the reversal of accrued interest mentioned above, second quarter adjusted earnings on a non-GAAP basis, as described below under Financial Disclosure Advisory, are expected to be approximately $0.19 per share.