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Pier 1 Imports, Inc. (NYSE:PIR) today reported financial results for the second quarter ended August 26, 2017.
Second Quarter Fiscal 2018 Highlights
• Net sales increased 0.4% to $407.6 million;
• Company comparable sales increased 1.8%;
• E-Commerce sales penetration reached 27%; and
• Loss per share (GAAP) of ($0.10); adjusted loss per share (non-GAAP) of ($0.05) compared to loss per share of ($0.05) in the second quarter of fiscal 2017 (see reconciliation below of loss per share to adjusted non-GAAP loss per share).
“We achieved solid top-line performance and year-over-year improvement in merchandise margin in a challenging retail environment,” said Alasdair James, President and Chief Executive Officer. “However, this level of performance does not reflect our expectations for the business. We believe there is far greater potential ahead to optimize the Pier 1 Imports brand and improve our long-term profitability.”
Mr. James continued, “Over the last two months, we have been conducting an extensive analysis of Pier 1 Imports’ brand strengths and operational capabilities. As I expected, there are strategic and tactical opportunities to enhance our brand positioning and refine our operations within key areas of the business, including sourcing, supply chain and promotional effectiveness. We are leveraging the strengths and assets within our organization, along with external resources, as we map our strategic plan for the future. We are halfway through our assessment process and now have greater confidence in our ability to strengthen the brand proposition, capture operating efficiencies and position the Company for long-term success.”
Second Quarter Fiscal 2018 Results of Operations
Net sales for the second quarter of fiscal 2018 increased 0.4% to $407.6 million, compared to $405.8 million in the same period last year. Company comparable sales for the quarter increased 1.8% versus the year-ago period. E-Commerce represented approximately 27% of net sales in the second quarter of fiscal 2018, as compared to approximately 20% of net sales in the second quarter of fiscal 2017. Taking into account e-Commerce orders placed in or picked up in-store, approximately 90% of the Company’s second quarter fiscal 2018 net sales directly touched a store.
Gross profit for the second quarter of fiscal 2018 totaled $140.2 million, or 34.4% of net sales, compared to $145.0 million, or 35.7% of net sales, in the second quarter of fiscal 2017. Second quarter merchandise margin (the result of adding back delivery and fulfillment net costs and store occupancy costs to gross profit) totaled $232.2 million, or 57.0% of net sales, compared to $229.8 million, or 56.6% of net sales, in the second quarter of fiscal 2017. The year-over-year improvement in merchandise margin as a percentage of net sales is primarily attributable to lower supply chain costs. For the three months ended August 26, 2017, contribution from operations (gross profit less compensation for operations and operational expenses) totaled $61.1 million, compared to $61.5 million during the same period last year.
more detail at: https://investors.pier1.com/news-releases/news-release-details/pier-1-imports-inc-reports-second-quarter-fiscal-2018-financial