Pier 1 Net Edges Up 3 Percent in Third Quarter
FORT WORTH, Texas-A strong sales gain helped Pier 1 Imports to another plus quarter, with net income rising 3 percent to $23.7 million.
Net sales increased 10.9 percent to $424.5 million, including a pickup in same-store sales of 7.9 percent, thanks to increased traffic and higher average ticket. The quarter, which ended on Nov. 24, also marked the first full quarter of e-commerce sales for Pier 1.
Alex Smith, president and CEO, said the company was pleased with the initial results from pier1.com. "Indeed, we saw very strong traffic at both our stores and pier1.com during the period, and trends have remained robust thus far in the holiday selling season," Smith said.
Thanks to the higher average ticket, gross margin rose 70 basis points in the quarter, to 43.9 percent. Selling, general and administrative expenses were up 9.2 percent in dollars but down 50 basis points as a percentage of sales, to 32.8 percent.
Smith said Pier 1's store base combined with its e-commerce capabilities "provides us with a powerful platform for growth." He said the retailer is continuing to build out its full multichannel functionality to position it for further growth down the road.