Pier 1 Imports, Inc. Reports Third Quarter Fiscal 2018 Financial Results

Pier 1 Imports, Inc. (NYSE:PIR) today reported financial results for the third quarter ended November 25, 2017.

Third Quarter Fiscal 2018 Highlights
•Net sales decreased 1.4% to $469.2 million;
•Company comparable sales decreased 0.7% and reflect an estimated impact of approximately 100 basis points related to the hurricanes in Texas and Florida;
•E-Commerce sales penetration reached 26%; and
•Earnings per share of $0.09 compared to earnings per share of $0.17 (GAAP) and adjusted earnings per share of $0.22 (non-GAAP) in the third quarter of fiscal 2017.

Alasdair James, President and CEO, stated, “Our third quarter financial performance was impacted by the hurricanes in Texas and Florida, as well as deeper than expected promotional activity in October and November. We saw improved sales in November, including a solid Black Friday weekend, driven by our strong promotional message. However, overall trends dropped considerably during the first two weeks of December. We have adjusted our promotional plans for the remainder of the holiday season, and significantly revised our financial guidance to reflect the current tone and volatility of business.”

“We recently completed a rigorous strategic review of the Pier 1 Imports brand and enterprise,” continued James. “Importantly, we see compelling go-forward opportunities to broaden the appeal of the brand, maximize the role of stores and e-Commerce, and substantially improve our operating margins. We are building a three-year strategic plan to transform the business, and are beginning to set things in motion with initiatives, testing and select organizational changes in the key areas of sourcing, supply chain, real estate, marketing and promotional effectiveness. We look forward to sharing our detailed blueprint in early 2018.”

Third Quarter Fiscal 2018 Results of Operations
Net sales for the third quarter of fiscal 2018 decreased 1.4% to $469.2 million, compared to $475.9 million in the same period last year. Company comparable sales for the quarter decreased 0.7% versus the year-ago period. E-Commerce represented approximately 26% of net sales in the third quarter of fiscal 2018, as compared to approximately 20% of net sales in the third quarter of fiscal 2017. Taking into account e-Commerce orders placed in or picked up in-store, approximately 90% of the Company’s third quarter fiscal 2018 net sales directly touched a store.

Gross profit for the third quarter of fiscal 2018 totaled $176.7 million, or 37.7% of net sales, compared to $196.4 million, or 41.3% of net sales, in the third quarter of fiscal 2017. Third quarter merchandise margin (the result of adding back delivery and fulfillment net costs and store occupancy costs to gross profit) totaled $269.0 million, or 57.3% of net sales, compared to $286.4 million, or 60.2% of net sales, in the third quarter of fiscal 2017. The year-over-year decline is attributable to heightened promotional activity. For the three months ended November 25, 2017, contribution from operations (gross profit less compensation for operations and operational expenses) totaled $94.0 million, compared to $111.4 million during the same period last year.

Third quarter fiscal 2018 selling, general and administrative (“SG&A”) expenses were $150.4 million, or 32.1% of net sales, compared to $160.8 million, or 33.8% of net sales, in the year-ago period. The year-over-year decline is primarily attributable to approximately $8.0 million of costs in the third quarter of fiscal 2017 associated with the departure of the Company’s former CEO. In the fiscal 2018 third quarter, reductions in store compensation were partially offset by increases in operational expenses and marketing. The following table details the breakdown of SG&A expenses for the third quarter of fiscal 2018 as compared to the same period last year (in millions).
more details at:  https://investors.pier1.com/news-releases/news-release-details/pier-1-imports-inc-reports-third-quarter-fiscal-2018-financial

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