Pier 1 Imports, Inc. (PIR), a specialty retailer of decorative home furnishings and gifts, on Thursday lifted its fiscal 2013 earnings outlook for the second time, after it reported a higher second-quarter profit. The results benefited from about 8 percent sales growth, with nearly 7 percent rise in comparable-store sales. Adjusted earnings matched analysts' expectations, while topline was slightly above the view.
Alex Smith, president and chief executive officer of the company said, "We are pleased to report our 12th consecutive quarter of strong comparable store sales gains and profit growth."
For the second quarter ended August 25, the company posted net income of $26.23 million or $0.24 per share, higher than $16.64 million or $0.14 per share in the previous year.
During the quarter, the company reversed $5.9 million of its reserve for uncertain income tax positions and reversed $2.8 million of accrued interest related to the tax positions.
Excluding items totaling $0.05 per share, adjusted earnings in the recent quarter were $0.19 per share. On average, 11 analysts polled by Thomson Reuters expected earnings per share of $0.19 for the quarter. Analysts' estimates typically exclude one-time items.
Quarterly net sales increased 8.3 percent to $367.62 million, marginally up from analysts' estimate of $367.17 million. Comparable-store sales rose 6.7 percent, compared to last year's increase of 10.8 percent. The company attributed the strong sales results mainly to increases in store traffic and higher average ticket.
Merchandise margins improved to 60.1 percent from 59.4 percent in the preceding year.
For the 52-week fiscal 2013, the company now expects non-GAAP earnings per share to be in the range of $1.10 to $1.16, up from its prior guidance of $1.08 to $1.14 per share. The company now sees GAAP earnings in the range of $1.15 to $1.21 per share, and comparable store sales growth in the mid single-digit range.
Analysts project fiscal earnings of $1.16 per share, on revenues of $1.67 billion.
The company said its fiscal year 2013 will include 53 weeks of operating results. The 53rd week is expected to contribute about $25 million to total sales, and $0.01 to $0.02 to earnings per share. In mid-June, the company had raised its earnings forecast for fiscal 2013.
PIR closed Wednesday's regular trading at $19.55 on the NYSE.
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