Pier 1 Imports reports 4Q sales growth

FORT WORTH, Texas Pier 1 Imports reported that total sales for the fourth quarter were $396 million compared with $389 million for the same period last year. Comparable-store sales for the fourth quarter increased 6.5%. Total sales for the fiscal year were $1.29 billion compared with $1.32 billion last year. Comparable-store sales for the year increased 1.5%.

For the fourth quarter, Pier 1 said it anticipates that reported merchandise margins will be better than expected at approximately 55.7%, compared to 44.3% reported last year. Reported earnings per share are expected to be at least 29 cents per share compared with a loss of 33 cents last year.

Alex Smith, president and CEO, stated, "We are proud of our fourth quarter performance, which began with an extremely successful holiday selling season. We knew that the strength of December sales, the resulting seasonal sell-through, and the lower level of markdown inventory would shorten the Pier 1 sale. However, we were able to more than offset the pressure on sales in January with a very strong merchandise margin improvement. Our quarter ended with strong sales and margin in February, despite the extreme weather conditions experienced in many parts of the country. The increase in margin rate during the quarter is attributable not only to less clearance merchandise but also to our initial markups which remained strong."