Pier 1 Imports (NYSE:PIR) announced Thursday its second quarter sales rose 10% from a year ago, largely on higher traffic in stores.
For the three months ending August 27, the decorative home furnishings retailer posted net income of $16.6 million, or $0.14 per share, including an income tax provision of $9.0 million, up 16% compared to $14.4 million, or $0.12 per share, a year ago, which included a $200,000 provision for income tax.
Sales during the quarter rose 10% to $339.6 million, from $309.9 million in the same period last year. Pier 1 said its sales increase was attributable to higher in-store traffic and higher average ticket, or how much customers spent in a single visit.
Analysts were anticipating the 14-cents in earnings, but had expected $335.0 million in sales.
Comparable store sales, or those locations open at least one year, increased 10.8% during the quarter, compared to an 11.2% increase a year ago.
Gross profit margins improved to 39.6%, from 36.9% in the second quarter of 2010.
President and CEO, Alex W. Smith commented: "Sales growth remains strong, and we continue to demonstrate the strength and sustainability of our business.
Our growth plan is firmly on track, and we have returned value to our shareholders through the completion of our $100 million share repurchase program."
Indeed, the company completed the $100 million repurchase earlier this month. During this second quarter, Pier 1 purchased a total of approximately 8.26 million shares at an average weighted cost of $10.42 per share, for a total cost of $86.1 million.
Looking forward, Smith added: "It is hard to predict how the economy will fare over the next several months, but we fully expect our business to be successful through the fall and holiday selling season."
In New York, Pier 1 shares slipped 2.57% to $11.37 as of 11:35 am EDT.