Pier 1 Imports, Inc. (NYSE:PIR) today reported sales results for the third quarter ended November 24, 2012.
Third Quarter Highlights
- Comparable store sales increased 7.9% on top of last year’s 7.0% gain; three-year cumulative comparable store sales increased 25.1%
- Total sales increased 10.9% to $425 million
- Gross profit expected to be approximately 43.9% of sales versus 43.2% of sales last year
- Earnings per share expected to be approximately $0.22 (GAAP) and $0.25 (non-GAAP) versus $0.21 in the third quarter of last year (see reconciliation below of expected earnings per share to expected adjusted non-GAAP earnings per share)
Comparable store sales for the third quarter ended November 24, 2012 increased 7.9% compared to an increase of 7.0% for the third quarter ended November 26, 2011. Total sales for the quarter improved 10.9% to $425 million compared to $383 million in the year-ago quarter. Strong comparable store sales results for the quarter were primarily attributable to increases in store traffic and higher average ticket. Third quarter merchandise margins at the store level are expected to be essentially flat year-over-year. Gross profit is expected to be approximately 43.9% of sales for the third quarter versus 43.2% of sales for the third quarter of last year. Marketing expenses as a percentage of sales are expected to be slightly higher versus the year ago period. The Company anticipates that full year spending will approximate 5% of sales, in line with its previously stated plan, and believes this level of investment will continue to drive strong traffic and conversion.
Comparable store sales for the first nine months of fiscal 2013 increased 7.3% versus a comparable store sales increase of 9.2% in the year-ago period. Total sales for the first nine months increased to $1.153 billion from $1.057 billion for the same period last year.