Pier 1 Imports Dec. Comps Up 1.3%; Cuts Q4, FY14 Outlook - Quick Facts

(RTTNews) - Pier 1 Imports Inc. (PIR), a specialty retailer of decorative home furnishings and gifts, said Thursday that comparable store sales for the five-week period ended January 4, 2014 increased 1.3% compared to the five-week period ended January 5, 2013.

The inclusion of a 53rd week of operations in fiscal 2013 shifted the company's fiscal 2014 calendar back one week, which distorts the comparison of holiday trends. As such, the company is presenting comparable store sales for the five weeks ending the first Saturday in calendar January of each respective year.

Before adjusting for the calendar shift, comparable store sales for fiscal December 2014 decreased 5.7%, which compares to a comparable store sales increase of 8.2% for the five-week fiscal period ended December 29, 2012.

Alex Smith, President and Chief Executive Officer said, "We're extremely disappointed that December sales results came in well below our expectations, especially considering our holiday selling season kicked off with a record post-Thanksgiving weekend. The disruption caused by wintry weather in the first half of December, which we discussed on our third quarter earnings call, continued to impact us throughout the balance of the month and into January. Store traffic in key markets was significantly affected by adverse weather in fiscal December, with the majority of the days concerned falling on our all-important weekends."

The company said it has reduced its guidance for the fourth quarter and full year fiscal 2014 to reflect the disruption to sales, and to a lesser extent, merchandise margin, during this important time-frame.

Looking ahead to the fourth quarter, on a comparable 13-week basis, the firm now expects earnings per share to be in the range of $0.47 to $0.52, compared to prior guidance of $0.60 to $0.66 per share.

The company now anticipates total sales growth for the fourth-quarter to be in the low- to mid-single digit range, and Comparable store sales to be approximately flat. The company said in December that it expected total sales growth for the fourth-quarter to be in the high single-digit range. Comparable store sales growth was expected to be in the mid single-digit range.

Analysts polled by Thomson Reuters expect the company to report earnings of $0.63 per share and revenues of $571.07 million for the fourth-quarter. Analysts' estimates typically exclude special items.

For fiscal 2014, on a comparable 52-week basis, the company now expects earnings per share to be in the range of $1.07 to $1.12, compared to prior guidance of $1.21 to $1.27 per share.

The company now projects annual total sales growth to be in the mid- to high-single digit range, and Comparable store sales growth in the low- to mid-single digit range. Previously, the firm expected annual total sales growth to be in the high single-digit range, with comparable store sales growth to be in the mid single-digit range.

Street currently is looking for fiscal year 2014 earnings of $1.23 per share on annual revenues of $1.83 billion.

As previously indicated, the company estimates the 53rd week of fiscal 2013 contributed $29 million to net sales and approximately $0.03 to earnings per share.

The company will announce fourth quarter and fiscal 2014 year-end results for the period ending March 1, 2014 on April 10, 2014.