Pier 1 Imports Q1 Profit Meets Expectations

reported in-line earnings for the first quarter. The Fort Worth, Texas-based company reported quarterly net income of $6.9 million, or $0.08 per share, versus $15.1 million, or $0.16 per share, in the year-ago period. Its total sales rose 3.1 percent to $432.0 million from $419.1 million. However, analysts were expecting a profit of $0.08 per share on revenue of $434.53 million. The average estimate among 13 Estimize users was for earnings of $0.09 per share and revenue of $434.20 million. Company comparable sales gained 2.0 percent in the latest quarter. Merchandise margin came in at $248.0 million, or 57.4 percent of total sales, versus $246.4 million, or 58.8 percent of total sales, in the year-ago quarter. Gross profit in the first quarter slipped to $164.7 million from $167.7 million. First quarter EBITDA shrank to $26.1 million from $36.4 million. Its selling, general and administrative expenses increased to $138.7 million from $131.5 million. During the first quarter, Pier 1 Imports repurchased a total of around 1.4 million shares of its common stock. Alex W. Smith, President and Chief Executive Officer said, "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." For full-year fiscal 2016, the company expects comparable sales to rise 3 percent to 5 percent, versus previous forecast for mid-single digit growth. However, the company reiterated its FY16 earnings outlook of $0.83 to $0.87 per share. For the second quarter, the company projects earnings of $0.07 to $0.08 per share, versus analysts' estimates of $0.08 per share. Company comparable sales are expected to rise 4 percent to 5 percent. Pier 1 shares climbed 3.25 percent to $12.40 in the after-hours trading session.