Pier 1 sales rise 12.8%, profits 6.3%
By Furniture Today Staff -- Furniture Today, December 24, 2001
FORT WORTH, Texas — Third-quarter sales for specialty retailer Pier 1 Imports shot up 12.8% as profits rose 6.3%. Same-store sales increased 5.1%.
Sales in the latest quarter ended Dec. 1 were $387.4 million, compared with $343.5 million in the year-ago period. Profits were $25 million, measured against the $23.6 million earned a year earlier.
For the nine months, sales were up 9.1% to $1.1 billion, compared with $981 million for the year-earlier period. Nine-month net income dropped 12% to $51.2 million from last year's $58.2 million. Same-store sales for the nine months rose 2.4%.
Pier 1 Chairman and Chief Executive Officer Marvin Girouard said the chain increased market share during the quarter due to "our solid merchandising offering combined with a strong response from customers to our value proposition."
So far this year, the company has opened 100 stores and closed 24, for a net gain of 76. The total growth in square footage has been 10%. Pier 1 plans to open 110 to 120 stores in its 2003 fiscal year, which begins at the end of February. The company currently operates 902 stores, and expects to have 1,400 to 1,500 stores by the end of the decade.
In addition to U.S. and Canadian stores, Pier 1 has 23 stores in the United Kingdom, 16 in Mexico and seven in Puerto Rico. During the final quarter of this year, it plans to close its three stores in Japan due to the economic climate.
The company said it plans to retain its focus on national advertising, but may shift slightly away from magazines and towards more newspaper inserts.
Pier 1 has revised upward its estimate of fourth-quarter earnings per share to the 40 to 42 cents range. The consensus estimate has been 37 to 38 cents. Pier 1 expects earnings per share for the first quarter to be in the 15 to 16 cents range, up from 13 cents in the first quarter of this year.
| Quarter ended 12/1 | 2001 | 2000 | Change |
|---|---|---|---|
| Sales | $387,360,000 | $343,493,000 | 12.8% |
| Operating income | 50,365,000 | 48,932,000 | 2.9% |
| Net income | 25,046,000 | 23,569,000 | 6.3% |
| Earnings per share | 0.26 | 0.24 | 8.3% |
| 9 months ended 12/1 | 2001 | 2000 | Change |
| Sales | $1,069,995,000 | $981,012,000 | 9.1% |
| Operating income | 113,187,000 | 125,107,000 | (9.5%) |
| Net income | 51,193,000 | 58,161,000 | (12.0%) |
| Earnings per share | 0.53 | 0.59 | (10.2%) |
