Pier 1 Imports (NYSE:PIR) Thursday posted a 58 per cent jump in second-quarter earnings as the home furnishings retailer saw results boosted by strong sales growth and helped by an income tax benefit.
The company also raised its full-year earnings guidance from $1.10 to $1.16 from its previous view of earnings between $1.08 and $1.14.
Pier 1 Imports is the original global importer of imported decorative home furnishings and gifts.
For the quarter ended August 25, Pier 1 posted a profit of $26.2 million, or 24 cents per share, compared with $16.6 million, or 14 cents a year earlier. Stripping out one-time items, per-share earnings for the quarter were 19 cents.
Revenue increased 8.3 per cent to $368 million.
Earnings and revenue were both in line with the home-furnishings retailer's estimates.
"The combination of our strong operating results and solid financial condition provide us with the flexibility to continue executing our three-year growth plan," Pier 1's CEO Alex W. Smith said.
"We're building our e-commerce platform, further improving the store portfolio, strengthening our infrastructure and returning value to our shareholders."
Comparable-store sales increased 6.7 per cent versus last year’s increase of 10.8 per cent.
Pier 1 has made a turnaround since the recession, when it struggled with declining sales and lost market share to discount retailers. Lately, Pier 1's recovery has gained momentum on higher traffic, increasing same-store sales and higher average receipt per customer as it remodeled stores and streamlined merchandise.
In April Pier 1 refreshed its growth plan with a new three-year guide, having outgrown its previous road map two years early. Similar to the company's previous strategy, the plan focuses on increasing online sales as well as building new stores and remodeling existing locations.
Gross profit for the quarter improved to $151.5 million, or 41.2 per cent of sales, from $134.5 million, or 39.6 per cent of sales in the second quarter of last year.