Pier 1 Turns in 13 Percent Gain in Q3 Net
FORT WORTH, Texas-In a quarter that saw an all-time sales record for Black Friday and the whole post-Thanksgiving weekend, Pier 1 Imports recorded net income of $26.8 million, up 13 percent from the third quarter of last year.
The highly successful holiday shopping periods helped the retailer to a 9.6 percent increase in net sales in the quarter, to $465.5 million. This included a gain of 6.9 percent in same-store sales for the quarter, which ended on Nov. 30. Alex Smith, Pier 1's president and CEO, said the retailer's more promotional marketing stance helped boost store traffic, and the company's store and e-commerce teams delivered on conversion.
The more promotional marketing did have a somewhat negative effect on gross margin, which slipped 50 basis points to 43.4 percent. Selling, general and administrative expenses increased 7.2 percent in dollars but fell back 70 basis points as a percentage of sales, to 32.1 percent.
Looking ahead, Pier 1 said it expects total sales for the fourth quarter and the full year to increase in the high single-digit range, and for same-store sales to rise in the mid-single digits. "Our holiday assortments have been very well received, as have our merchandising, marketing and customer engagement activities," Smith said. "We fully expect to capture additional market share over the holiday period."