Profit Blooms for Pier 1 as Sales, Margins Gain in 2Q
FORT WORTH, Texas-Pier 1 Imports enjoyed a 57.7 percent increase in its fiscal second quarter, thanks to further increases in both sales and margins.
Net sales for the quarter, which ended on Aug. 25, rose 8.3 percent to $367.6 million, including a gain in same-store sales of 6.7 percent. Gross margin increased by 160 basis points to 41.2 percent, and merchandise margins were up 170 basis points to 60.1 percent.
Pier 1 was also able to keep its operating expenses relatively in check in the second quarter. Selling, general and administrative expenses gained 5.9 percent in dollars but decreased 60 basis points as a percentage of sales, to 30.5 percent.
Alex Smith, Pier 1's president and CEO, noted that this was the 12th consecutive quarter in which the home furnishings retailer reported both profit growth and strong same-store sales gains. "Now, with the recent launch of the new e-commerce-enabled pier1.com, we have two powerful growth vehicles--our enhanced portfolio of 1,058 Pier 1 Imports stores and our new online business," Smith said.