Thursday August 30th, 2012 - 1:02PM
Pier 1 Imports, Inc. today reported a second quarter comparable store sales increase of 6.7%. The company said that, for the quarter ended August 25, it estimates that GAAP earnings per share will come in at 24 cents and that non-GAAP earnings per share will come in at 19 cents versus 14 cents in last year’s period.
An average analyst earnings per share estimate compiled by Thomson Reuters was for 18 cents.
The company stated that total sales increased 8.3% to $368 million versus the prior-year second quarter.
Alex Smith, Pier 1 president and CEO, said in commentary on the quarterly results, “We are very pleased with our profitable sales growth this quarter, which reflects strong execution across all aspects of the organization. Our stores have transitioned from summer to fall, and customers have responded favorably to our new assortments.”
In addition to sales growth, the second quarter saw the relaunch of the Pier 1 web site, which now, with its added capacity for home delivery, is a comprehensive e-commerce platform.
“We are delighted with the highly successful, on-time launch of our new e-commerce enabled website, Pier1.com, in late July,” Smith said. “The new site includes direct-to-customer shipping, a full redesign, enhanced functionality and new features, and has met with positive response from our customers. The continued development and expansion of our e-commerce business will be an important part of our growth strategy going forward.”
As for earnings, during the second quarter of this year, Pier 1 reversed a reserve for uncertain income tax positions for which the statute of limitations expired. In addition, the company reversed accrued interest related to the uncertain tax position. The company’s effective tax rate for the fiscal year is expected to be 35.6% of pre-tax income, Pier 1 noted. At an effective tax rate of 35.6% and excluding the reversal of accrued interest, second quarter adjusted earnings on a non-GAAP basis should be 19 cents per share, Pier 1 noted.