Pier 1 Imports CEO: Growth plans still on track

Pier 1 Imports reported same store sales growth for the first quarter, which the company’s CEO credited to the completion of an omnichannel transformation.

“With our omnichannel transformation now complete, we are rebuilding our profitability levels through measured sales and margin growth, along with expense leverage,” said Alex W. Smith, president and CEO. “We are pleased to deliver earnings per share in line with our expectations, reflecting revenue growth of 3%, as well as careful attention to expense control. E-commerce continues to perform exceptionally well, generating strong improvement across all performance metrics, and accounting for nearly 17% of total sales in the quarter.”

For the first quarter ended May 30, the company reported net income of $6.9 million, or 8 cents per share, compared to last year’s first quarter net income of $15.1 million, or 16 cents per share. Total sales for the first quarter increased 3.1% to $432.0 million, compared to $419.1 million in the same period last year. Same store sales increased 2%.

“From a top-line perspective, we exited the quarter with May company comparable sales growth of 4%. March was nearly as strong, while we experienced some slower weeks during the month of April, similar to what many others in the industry have observed. Now that we are into June and at the leading edge of our summer clearance event, company comparable sales are trending in excess of May results,” Smith added.

The company reiterated the following guidance for full-year fiscal 2016: EBITDA margins comparable to fiscal 2015; depreciation of approximately $50 million to $55 million; operating income, as a percentage of sales, comparable to fiscal 2015; AND earnings per share in the range of 83 to 87 cents.

“For the near term, we are resolutely focused on continuing to execute on the top line and demonstrating greater expense control. With our omni-channel transformation now complete, we are confident that we can begin to rebuild our profitability levels through measured sales and margin growth, along with expense leverage,” Smith concluded.

Texas-based Pier 1 Imports operates about 990 stores in 49 US states and another 80 locations across Canada.