Pier 1 Q4, FY Net Fall on Accounting Change
FORT WORTH, Texas-A change in the company's valuation allowance, which resulted in an income-tax benefit last year, resulted in decreases in net income for Pier 1 Imports for both its fourth quarter and fiscal year.
Net income for the quarter, which ended on March 2, totaled $61.7 million, down 46.4 percent from the prior year's fourth quarter. For the fiscal year, the bottom line was down 23.4 percent to $129.4 million. Pretax income rose 22.3 percent for the quarter and 22.5 percent for the year.
Net sales for the quarter rose 15.7 percent to $551.6 million, while for the year, net sales were up 11.2 percent to $1.7 billion. Pier 1 posted same-store sales gains of 7.9 percent for the quarter and 7.5 percent for the year.
Alex Smith, Pier 1's president and CEO, called fiscal 2013 "another outstanding year" for the home specialty retailer. Along with improving sales and operating profit, Pier 1 launched its e-commerce-enabled website, established the platform to support its multichannel strategy and began the pilot for its new point-of-sale system, Smith said.
For the quarter, Pier 1 boosted gross margin by 70 basis points to 46.2 percent. Selling, general and administrative expenses were up 9.6 percent in dollars but down 140 basis points as a percentage of sales, to 26.4 percent.
Looking ahead, Smith said, "We believe we can continue to grow our business significantly. We have laid the foundation to take the company to a new level of growth, and we're focused on executing the strategies to get there." He cited both Pier 1's store portfolio and its e-commerce site, which are "mutually supportive, integrated and interdependent businesses."