Pier 1 Net Gets 16 Percent Boost in Second Quarter
FORT WORTH, Texas-Strong gains in both sales and margins propelled Pier 1 Imports to a 16 percent increase in net income, to $16.6 million, in its fiscal second quarter, which ended on Aug. 27.
Net sales for the home furnishings retailer totaled $339.6 million in the quarter, up 9.6 percent over last year's second quarter and including an impressive 10.8 percent jump in same-store sales, on top of the 11.2 percent comp-store gain last year. The company attributed these results to increases in both store traffic and average ticket.
Gross margin in the quarter was 39.6 percent, a pickup of 270 basis points and a result of stronger merchandise margins and "well-managed inventory levels," according to the company. Selling, general and administrative expenses were up 12.1 percent in dollar terms and 70 basis points as a percentage of sales, to 31.1 percent.
Alex Smith, Pier 1's president and CEO, said the second-quarter performance showed that its growth plan "is firmly on track. It is hard to predict how the economy will fare over the next several months, but we fully expect our business to be successful through the fall and holiday selling season."