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Pier 1 meets Street with Q3 profit decline


Fort Worth, Texas – Pier 1 Imports Inc. met Wall Street expectations with a 33% year-over-year decline in profits during the third quarter of fiscal 2015. Net income fell to $17.9 million from $26.8 million, with an increase in selling, general and administrative (SG&A) expenses driving the reduction.

Total sales were $484.5 million, a 4% increase from $465.5 million. Same-store sales rose 2.5%. E-commerce sales tripled to comprise 12% of total sales in the third quarter. More than 60% of e-commerce transactions touched the stores during the period.

“We are confident that the value proposition created by our exclusive and unique product remains strong, and our refined promotional strategy, which benefited this period, will contribute to gradual improvement in our gross margin rate over the coming quarters,” said Alex W. Smith, chairman and CEO. “We have in our stores and online business two mutually supportive and interdependent vehicles to drive long-term, profitable growth.”

For the full fiscal year, Pier 1 expects same-store sales growth in the mid-to-high single digits. This figure includes e-commerce sales.
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