Pier 1 Imports Q3 Profit Misses View, But Revenues Top; Cuts FY14 EPS View

(RTTNews) - Pier 1 Imports, Inc. (PIR) reported that net income for the third quarter ended November 30, 2013 was $26.8 million, or $0.26 per share, up from $23.7 million, or $0.22 per share a year ago. Analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the third-quarter. Analysts' estimates typically exclude special items.

Adjusted net income for the third quarter of last year was $27.1 million, and adjusted earnings per share were $0.25.

Total sales for the third quarter were $465.5 million, a 9.6% increase versus $424.5 million in the year-ago quarter. Eleven analysts estimated revenues of $462.14 million for the quarter.

Comparable store sales increased 6.9% compared to last year's comparable store sales gain of 7.9%. Comparable store sales results for the period were primarily attributable to increases in conversion rate and higher average ticket.

The company announced that its Board of Directors declared a $0.06 per share quarterly cash dividend on the Company's outstanding shares of common stock, reflecting a 20% increase from the previous quarterly cash dividend. The $0.06 per share quarterly cash dividend will be paid on February 5, 2014 to shareholders of record on January 22, 2014. As of December 19, 2013, approximately 103.0 million shares of the Company's common stock were outstanding.

The company's fiscal 2014 fourth quarter and fiscal year will include 13 weeks and 52 weeks of operating results, respectively. This compares to the fourth quarter and full year of fiscal 2013, which included 14 weeks and 53 weeks, respectively.

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.

Looking ahead for the fourth quarter on a comparable 13-week basis, the company expects earnings per share to be in the range of $0.60 to $0.66, representing year-over-year growth of 9% to 20%. Comparable store sales growth is expected to be in the mid single-digit range. Total sales growth is anticipated to be in the high single-digit range. Analysts expect the company to report earnings of $0.62 per share and revenues of $569.37 million for the fourth-quarter.

For fiscal year 2014 on a comparable 52-week basis, earnings per share is expected to be in the range of $1.21 to $1.27, representing year-over-year growth of 3% to 9%, compared to prior guidance of $1.23 to $1.29 per share.

The company still expects 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 $1.25 per share on annual revenues of $1.82 billion.