Earnings per share for the third quarter of fiscal 2013 are expected to be approximately $0.22 (GAAP) and $0.25 (non-GAAP) compared to $0.21 in the third quarter last year. The non-GAAP expected adjusted earnings per share excludes the estimated impact of Hurricane Sandy and utilizes an estimated 35.6% annual effective tax rate for fiscal 2013 (see reconciliation below under Financial Disclosure Advisory). The Company has estimated the impact of lost sales and costs associated with Hurricane Sandy to be approximately $0.02 per share, net of tax, for the third quarter of fiscal 2013. In the days immediately following the storm, up to 225 stores were closed, primarily due to power outages in affected areas and 50 stores operated on reduced hours. All stores were reopened and fully operational by the end of the second week in November, with the exception of one store located in Long Island, New York, which remains closed due to storm damage.
Alex W. Smith, President and Chief Executive Officer, commented, “While a large number of our stores experienced closure and disruption due to Sandy, our focus was directed first and foremost on the safety and well-being of our associates and others in need. I am extremely proud of and grateful to our associates for their efforts to reopen our stores quickly, even though their own lives were, and in some cases still are, disrupted.”
Smith continued, “We’re pleased to deliver strong sales growth this quarter, as customers responded particularly well to our fall assortments. Excluding the impact of Hurricane Sandy, we estimate that third quarter comp store sales would have increased slightly over 9%.”
“We have had a terrific start to the holiday season, including a very strong Thanksgiving weekend, and believe the business is ideally positioned with a compelling merchandise assortment and multiple ways to shop the Pier 1 Imports brand, including both in-store and online. We look forward to discussing our third quarter results and providing an update on holiday business during our upcoming conference call.”