Pier 1 Imports, Inc. Reiterates Fourth Quarter and Full-Year Fiscal 2017 Financial Guidance
February 07 2017 - 4:15PM
Business Wire
Pier 1 Imports, Inc. (NYSE:PIR) today reiterated its financial
guidance for the fourth quarter and full fiscal year ending
February 25, 2017.
“Customers responded positively to our seasonal and holiday
assortments in December and our team has been performing well at
all levels of the business again this quarter,” said Terry E.
London, Interim President and Chief Executive Officer. “In
particular, our store associates are doing a great job of engaging
our customers and providing them with outstanding service and a
unique shopping experience. Additionally, our January clearance
event was successful and readies us for the transition to fresh
spring goods this month. Strong execution across the board enabled
us to achieve slightly positive comparable sales growth of 0.6%
quarter-to-date through January.”
Jeffrey N. Boyer, Executive Vice President and Chief Financial
Officer, added, “We feel confident about our positioning for
spring, which builds on our merchandising, marketing and
promotional strategies which helped drive improved performance at
Pier 1 Imports during the second half of fiscal 2017. We will
provide formal guidance for fiscal 2018 when we report our fourth
quarter and fiscal 2017 financial results in April.”
Fourth Quarter and Full-Year Fiscal 2017 Financial
Guidance
The Company reiterated the following financial guidance for the
fiscal 2017 fourth quarter and full year:
Guidance Metric 4th
Quarter Full Year · Comparable
sales growth (contraction) (%): (1%) to 1%
(2%) to Flat · Net sales growth (contraction)
(%): (3%) to (1%) (4%) to
(2%) · Merchandise margin (% of net sales):
Approximately 56% to 57% Approximately 56.5%
to 57.5% · SG&A expenses: Approximately
$145 million to $150 million Approximately
$585 million to $590 million · Marketing spend:
Approximately $25 million Approximately
$105 million · Depreciation:
Approximately $56 million · Corporate tax rate:
Approximately 34%
· Earnings per share (GAAP): $0.26 to $0.30
$0.30 to $0.34 · Adjusted earnings per share
(non-GAAP): $0.28 to $0.32
$0.37 to $0.41 · Fully diluted share count:
Approximately 81 million shares
· Capital expenditures:
Approximately $48 million
The Company’s adjusted earnings per share guidance excludes
estimated costs of approximately $2 million in the fourth quarter
and $10 million for full-year fiscal 2017 related to the departure
of the Company’s former Chief Executive Officer.
Financial Disclosure Advisory
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (“GAAP”). All
financial data in this press release is estimated and represents
the most current information available to the Company’s management,
as results for fiscal February 2017 and financial closing
procedures for the fourth quarter and full year are not yet
complete. These estimates are not a comprehensive statement of the
Company’s financial results for the three- and twelve-month periods
ended February 25, 2017, and actual results may differ materially
from these estimates as a result of the completion of normal
quarter- and year-end accounting procedures and adjustments, which
could result in changes to these estimates.
The Company believes that the non-GAAP financial measures
referenced in this press release allow management and investors to
understand and compare results in a more consistent manner for the
three- and twelve-month periods ended February 25, 2017, and
February 27, 2016. Non-GAAP financial measures should be considered
supplemental and not a substitute for the Company’s results
reported in accordance with GAAP for the periods presented.
Management believes merchandise margin is a meaningful indicator
of the Company’s performance which provides useful information to
investors regarding its financial condition and results of
operations. Merchandise margin represents the result of adding back
delivery and fulfillment net costs and store occupancy costs to
gross profit. Management uses merchandise margin, together with
financial measures prepared in accordance with GAAP to assess the
Company’s operating performance, to enhance its understanding of
core operating performance and to compare the Company’s operating
performance to other retailers. This non-GAAP financial measure
should not be considered in isolation or used as an alternative to
GAAP financial measures and does not purport to be an alternative
to net income or gross profit as a measure of operating
performance. Due to the preliminary nature of our fourth quarter
and year-end results, a reconciliation to the most directly
comparable GAAP measure cannot be presented without unreasonable
effort.
This press release also references forward-looking adjusted
earnings per share, which exclude the impact of severance and other
charges related to the departure of the Company’s former Chief
Executive Officer in fiscal 2017. Management believes this non-GAAP
financial measure is useful in comparing the Company’s
year-over-year operating performance. Forward-looking adjusted
earnings per share should be considered supplemental and not a
substitute for the Company’s net income and earnings per share
results reported in accordance with GAAP.
Except for historical information contained herein, the
statements in this press release or otherwise made by our
management in connection with the subject matter of this press
release are forward-looking statements (as such term is defined in
the Private Securities Litigation Reform Act of 1995) and involve
risks and uncertainties and are subject to change based on various
important factors. This press release includes forward-looking
statements that are based on management’s current estimates or
expectations of future events or future results. These statements
are not historical in nature and can generally be identified by
such words as “believe,” “expect,” “estimate,” “anticipate,”
“plan,” “may,” “will,” “intend” and similar expressions.
Management’s expectations and assumptions regarding future results
are subject to risks, uncertainties and other factors that could
cause actual results to differ materially from the anticipated
results or other expectations expressed in the forward-looking
statements included in this press release. These risks and
uncertainties include, but are not limited to, the fact that the
Company has not completed the fourth quarter of fiscal 2017, the
Company’s fiscal year-end financial closing procedures are not
complete and therefore actual results may differ from estimated
results, the effectiveness of the Company’s marketing campaigns,
promotional strategies and customer databases, consumer spending
patterns, inventory levels and values, the Company’s ability to
implement planned cost control measures, expected benefits from the
real estate optimization initiative, including cost savings and
increases in efficiency, changes in foreign currency values
relative to the U.S. Dollar and the Company’s ability to retain a
new CEO. These and other factors that could cause results to differ
materially from those described in the forward-looking statements
contained in this press release can be found in the Company’s
Annual Report on Form 10-K and in other filings with the SEC. Refer
to the Company’s most recent SEC filings for any updates concerning
these and other risks and uncertainties that may affect the
Company’s operations and performance. Undue reliance should not be
placed on forward-looking statements, which are only current as of
the date they are made. The Company assumes no obligation to update
or revise its forward-looking statements.
Pier 1 Imports, Inc. is the original global importer of home
décor and furniture. Information about the Company is available on
www.pier1.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170207006435/en/
Pier 1 Imports, Inc.Bryan Hanley, 817-252-6083
Pier 1 Imports (NYSE:PIR)
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