Pier 1 Imports, Inc. Reports Preliminary Fourth Quarter and Full-Year Fiscal 2017 Financial Results
March 06 2017 - 4:16PM
Business Wire
Pier 1 Imports, Inc. (NYSE:PIR) today announced preliminary
financial results for the fourth quarter and fiscal year ended
February 25, 2017.
Fourth Quarter Fiscal 2017:
- Net sales for the fourth quarter
decreased approximately 2.6% compared to the same period a year ago
as the average number of stores declined approximately 3%;
- Company comparable sales, which
includes e-Commerce, increased approximately 0.2%;
- E-Commerce sales grew 28% as compared
to the same period a year ago and represented approximately 19.5%
of net sales in the fourth quarter;
- Fourth quarter earnings per share
(GAAP) is expected to range from $0.31 to $0.33 per share, which
compares favorably to prior guidance of $0.26 to $0.30 per share;
and
- Fourth quarter adjusted earnings per
share (non-GAAP) is expected to range from $0.32 to $0.34 per
share, compared to prior guidance of $0.28 to $0.32 per share. The
Company’s adjusted earnings per share guidance excludes estimated
costs of approximately $2 million in the fourth quarter related to
the departure of the Company’s former Chief Executive Officer.
Full-Year Fiscal 2017:
- Net sales for full-year fiscal 2017
decreased approximately 3.4% compared to the prior fiscal year as
the average number of stores declined approximately 3%;
- Company comparable sales, which
includes e-Commerce, decreased approximately 1.0%;
- E-Commerce sales grew 20% as compared
to the same period a year ago and represented approximately 20% of
net sales in fiscal year 2017;
- Full-year fiscal 2017 earnings per
share (GAAP) is expected to range from $0.35 to $0.37 per share,
which compares favorably to prior guidance of $0.30 to $0.34 per
share;
- Full-year fiscal 2017 adjusted earnings
per share (non-GAAP) is expected to range from $0.42 to $0.44 per
share, compared to prior guidance of $0.37 to $0.41. The Company’s
adjusted earnings per share guidance excludes estimated costs of
approximately $10 million in the year related to the departure of
the Company’s former Chief Executive Officer;
- Inventories as of February 25, 2017,
were down approximately 2% from a year ago; and
- The Company ended fiscal year 2017 with
approximately $154 million of cash and cash equivalents on hand
versus $115 million in the prior year and no cash borrowings
outstanding under its $350 million secured revolving credit
facility.
“We are pleased with our preliminary fourth quarter financial
results,” said Jeffrey N. Boyer, Executive Vice President and Chief
Financial Officer. “Our company comparable sales were in line with
our previous guidance and reflect strong execution of our
merchandising, marketing and promotional strategies. We are raising
our estimates for earnings per share and adjusted earnings per
share for the fourth quarter and full year as a result of a number
of key factors. Improved effectiveness of our promotional and
discounting initiatives along with a continuation of our supply
chain efficiencies drove another quarter of significantly higher
merchandise margin. At the same time, our ongoing cost containment
and efficiency programs throughout the Company resulted in better
than expected operating expense performance.
“We are entering fiscal 2018 in a strong position both
operationally and financially,” continued Mr. Boyer. “With our
solid balance sheet, seasoned executive team and associates who are
highly committed to the Pier 1 Imports brand, we are well
positioned to continue leveraging our omni-channel capabilities and
deliver increased value to our shareholders.”
Raymond James 38th Annual Institutional
Investors Conference
As previously announced, the Company is participating in the
Raymond James 38th Annual Institutional Investors Conference being
held March 5-8, 2017, at the JW Marriott Orlando Grande Lakes Hotel
in Orlando, Florida. Jeffrey N. Boyer, Executive Vice President and
Chief Financial Officer, will deliver a presentation on Tuesday,
March 7th at 7:30 a.m. Eastern Time.
A live audio webcast of the presentation along with the
Company’s presentation materials will be available through the
Investor Relations section of pier1.com on the day of the
presentation. The webcast will be available for 7 days following
the event. The materials can be accessed by selecting “Investor
Relations” on the Company’s homepage and linking through to the
“Events” page.
Fourth Quarter and Full-Year Fiscal 2017 Financial Results
Conference Call
The Company will host a conference call to discuss fourth
quarter and full-year fiscal 2017 financial results at 4:00 p.m.
Central Time on Wednesday, April 12, 2017. Investors will be able
to connect to the call through the Company’s website at pier1.com.
The conference call can be accessed by selecting “Investor
Relations” on the Company’s homepage and linking through to the
“Events” page, or dialing 1-844-807-9149, or if international,
1-210-229-8834. The conference ID number is 84183624.
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 preliminary and represents
the most current information available to the Company’s management,
as financial closing procedures for the quarter and full-year ended
February 25, 2017, and the annual audit are not yet complete. These
preliminary 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-end and year-end accounting procedures and adjustments,
including completion of the annual audit, which could result in
changes to these preliminary results.
This press release references merchandise margin and adjusted
earnings per share, which are non-GAAP financial measures. 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. Merchandise margin does not purport
to be an alternative to net income or gross profit reported in
accordance with GAAP as a measure of operating performance.
This press release also references preliminary estimated
adjusted earnings per share, which excludes 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. Adjusted earnings per share
does not purport to be an alternative to net income or earnings per
share reported in accordance with GAAP as a measure of operating
performance.
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’s fourth quarter and fiscal year-end financial closing
procedures, annual accounting procedures and adjustments and annual
audit of its financial statements are not complete and therefore
actual results may differ from preliminary 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.
About Pier 1 Imports
Pier 1 Imports is dedicated to offering customers exclusive,
one-of-a-kind products that reflect high quality at a great value.
Starting with a single store in 1962, Pier 1 Imports’ product is
now available in retail stores throughout the U.S. and Canada and
online at pier1.com. For more information about Pier 1 Imports or
to find the nearest store, please visit pier1.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170306006179/en/
Pier 1 Imports, Inc.Investor RelationsBryan Hanley,
817-252-6083
Pier 1 Imports (NYSE:PIR)
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