Pier 1 Imports Q4 Profit Tops Estimates

reported upbeat earnings for the fourth quarter and lifted its dividend. The Fort Worth, Texas-based company posted quarterly net income of $33.1 million, or $0.37 per share, down from $42.6 million, or $0.41 per share, in the year-ago quarter. Its non-GAAP adjusted net income came in at $0.39 per share. Its total sales for the fourth quarter climbed to $543.6 million from $515.8 million. Analysts were projecting a profit of $0.36 per share on revenue of $548.71 million. Its company comparable sales rose 5.7 percent in the quarter, while comparable sales climbed 6.4% on a constant currency basis. Merchandise margin in the quarter came in at $302.1 million, or 55.6% of total sales, versus $292.0 million, or 56.6% of total sales, in the year-ago quarter. Selling, general and administrative expenses climbed to $149.0 million, versus $133.9 million. EBITDA for the fourth quarter slipped to $67.6 million from $80.8 million, while operating income dropped to $53.1 million from $70.1 million. During the fiscal year, Pier 1 repurchased a total of 10.3 million shares of its common stock for around $173.9 million. Pier 1 Imports lifted its quarterly dividend from $0.06 per share to $0.07 per share. "In fiscal 2016 our financial priorities include implementing strict expense controls, reducing capital expenditures and lowering store costs. To that end, we will begin making strategic reductions to the size of our store base as e-Commerce sales penetration continues to increase. We anticipate these actions will help drive EBITDA dollar growth in fiscal year 2016, and have a more pronounced effect in fiscal year 2017. We also expect to continue to generate strong cash flow. We plan to continue to return excess capital to shareholders through share repurchases and cash dividends. Today we announced a 17% increase in our quarterly dividend to $0.07 per share," stated Alex W. Smith, President and Chief Executive Officer. The average estimate among 14 Estimize users was for earnings of $0.37 per share and revenue of $546.46 million. For full-year fiscal 2016, the company projects earnings of $0.83 to $0.87 per share and comparable sales growth in the mid-single digits. Analysts had expected earnings of $0.90 per share. For the first quarter of fiscal 2016, it expects earnings of $0.07 to $0.08 per share and comparable sales growth of around 4.0%. Analysts had projected earnings of $0.12 per share. Pier 1 Imports shares rose 1.58 percent to $12.85 in the after-hours trading session.