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Pier 1 Imports, Inc. (NYSE:PIR) today reported financial results for the second quarter ended August 25, 2012.
Second Quarter Financial Highlights
Comparable store sales increased 6.7% versus last year’s increase of 10.8%; three-year cumulative comparable store sales increase of 28.7%
Gross profit as a percentage of sales up 160 basis points to 41.2%
Operating income increased 36% and is 8.8% of sales
Earnings per share of $0.24 (GAAP) and $0.19 (non-GAAP) versus $0.14 last year (see reconciliation below of earnings per share to adjusted non-GAAP earnings per share)
“We are pleased to report our 12th consecutive quarter of strong comparable store sales gains and profit growth,” said Alex W. Smith, President and Chief Executive Officer. “Our sound strategies and focus on flawless execution ideally position the Company to achieve continued growth and long-term success. Now, with the recent launch of the new e-Commerce enabled Pier1.com, we have two powerful growth vehicles – our enhanced portfolio of 1,058 Pier 1 Imports stores and our new online business.”
Mr. Smith continued, “The combination of our strong operating results and solid financial condition provide us with the flexibility to continue executing our three-year growth plan. We’re building our e-Commerce platform, further improving the store portfolio, strengthening our infrastructure and returning value to our shareholders.”
Second Quarter Results
For the second quarter ended August 25, 2012, the Company reported net income of $26.2 million, or $0.24 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, as described below under Income Taxes. Utilizing an estimated annual effective tax rate of 35.6%, and excluding the reversal of accrued interest referenced above, second quarter adjusted net income on a non-GAAP basis, as described below under Financial Disclosure Advisory, was $20.7 million, or $0.19 per share, an increase of 36% on a per share basis versus the same period last year. For the second quarter ended August 27, 2011, the Company reported net income of $16.6 million, or $0.14 per share. Total sales for the second quarter of fiscal 2013 were $367.6 million, an increase of 8.3% versus $339.6 million in the year-ago quarter. Comparable store sales increased 6.7% during the second quarter on top of last year’s 10.8% gain. Strong sales results for the period were primarily attributable to increases in store traffic and higher average ticket.