Earnings Review and Free Research Report: Pier 1 Imports Reported Better Than Expected Earnings Results; Declared Dividend

LONDON, UK / ACCESSWIRE / July 10, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Pier 1 Imports, Inc. (NYSE: PIR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=PIR, following the Company’s announcement of its financial results for the first quarter 2018 on June 28, 2017. The home decor Company updated its fiscal 2018 guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

For three months ending May 27, 2017, Pier 1 Imports reported net sales of $409.53 million compared to net sales of $418.37 million in Q1 FY17. The Company’s sales numbers lagged behind analysts’ expectations of $421 million. Pier 1 Imports’ comparable sales on a constant currency basis were flat y-o-y.

In Q1 FY18, Pier 1 Imports’ average number of stores operating decreased 1% to 1,016 from 1,027 in Q1 FY17. For the reported quarter, the Company’s e-commerce sales totaled $99.3 million, representing 23% growth on a y-o-y basis.

During the quarter, Pier 1 Imports’ gross profit increased by 1.4% to 37% of net sales from 35.6% in Q FY17. For the reported quarter, the Company’s merchandise margin was 58.6% of net sales, a 3% increase from 55.6% in the prior year’s same quarter. The improvement in merchandise margin was primarily attributable to improved operations within Pier 1 Imports’ supply chain and decreased clearance.

For the three months ended May 27, 2017, the Company’s contribution from operations increased 9% to $74.9 million from $68.7 in Q1 FY17. The SG&A was 34.2% of net sales compared to 34.1% of net sales in the same quarter last year. In Q1 FY18, Pier 1 Imports’ operating loss was $2.32 million compared to an operating loss of $7.81 million in Q1 FY17.

Pier 1 Imports’ net loss for Q1 FY18 was $2.99 million compared to a net loss of $6.02 million in Q1 FY17. During the reported quarter, the Company recorded negative EPS of $0.04 compared to negative EPS of $0.07 in Q1 FY17. The results beat Wall Street’s expectations for a loss of $0.05 per share. For the reported quarter, the Company’s EBITDA increased 70.6% to $11.6 million compared to $6.8 million in Q1 FY17.

Balance Sheet

For three months ending May 27, 2017, Pier 1 Imports’ cash and cash equivalents increased 26.3% to $161.63 million from $128.03 million in Q1 FY17. The Company had no working capital borrowings outstanding under its $350 million secured revolving credit facility. For the reported quarter, Pier 1 Imports’ inventories fell 1% to $418.4 million from $421.1 million in Q1 FY17.

During the reported quarter, the Company repurchased 500,000 shares of its common stock for approximately $3.1 million. The Company also amended its $350 million revolving credit agreement extending the maturity from June 18, 2018, to June 02, 2022. This includes a $150 million accordion feature that allows the Company to increase the facility to as much as $500 million under certain circumstances.

On June 28, 2017, Pier 1 Imports’ Board of Directors declared a $0.07 per share quarterly cash dividend of $0.07 on the Company’s outstanding shares of common stock which will be paid on August 02, 2017, to shareholders of record on July 19, 2017.

Outlook

For FY18, Pier 1 Imports is forecasting net sales growth in the range 1.5%-2.5% and merchandise margin of 58%, SG&A expenses to be 31.5% of sales, and an effective tax rate of 39%. The Company expects to close approximately 20 to 25 net stores in fiscal 2018.

For Q2 FY18, the Company estimates comparable sales growth of flat to up 2%; merchandise margin to be 57%; SG&A expenses in the range of $132 million-$137 million; and net loss per share in the range of $0.08-$0.04.

Stock Performance

On Friday, July 07, 2017, Pier 1 Imports’ stock closed the trading session at $4.64, slipping 3.33% from its previous closing price of $4.80. A total volume of 3.16 million shares was exchanged during the session, which was above the 3-month average volume of 2.81 million shares. Shares of the Company have a PE ratio of 11.34 and have a dividend yield of 6.03%. The stock currently has a market cap of $404.56 million.

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