25125 Thu, 06/14/2012 - 12:51pm
FORT WORTH, Texas-Pier 1 Imports logged a 26.4 percent increase in net income, to $17.8 million, in its fiscal first quarter, and has extended President and CEO Alex Smith’s term of office into 2016.
The company achieved the blacker bottom line in the quarter, which ended on May 26, on a net-sales gain of 7.9 percent, to $361.1 million, which included an increase in same-store sales of 7.2 percent. Gross margin expanded by 150 basis points to 41.6 percent. Selling, general and administrative expenses rose 6.6 percent in dollars but shed 40 basis points as a percentage of sales, to 32.2 percent.
Smith said the improved results reflected “the effectiveness of our merchandising strategies and in-store execution, as well as strong full-price selling.” He noted the upcoming debut of Pier 1’s e-commerce site, Pier 1 To-You, scheduled for July, “and the opportunity for Pier 1 Imports to capture market share as we continue our evolution into an industry-leading multichannel retailer.”
In a filing with the U.S. Securities and Exchange Commission, Pier 1 said Smith’s employment agreement as president and CEO, initially scheduled to expire on March 2, 2013, would be extended until Feb. 27, 2016, with one-year renewal provisions.
In the statement announcing Pier 1’s first-quarter results, Chairman Michael Ferrari said, “Alex has now been with Pier 1 Imports for over five years and under his leadership, has brought the brand back to prominence and positioned the company as one of the leading retailers in the home furnishings industry.”