Pier 1 Imports (PIR) has reported 33.25 percent plunge in profit for the quarter ended Nov. 29, 2014. The company has earned $17.86 million, or $0.20 a share in the quarter, compared with $26.76 million, or $0.26 a share for the same period last year. Revenue during the quarter grew 4.09 percent to $484.50 million from $465.46 million in the previous year period. Gross margin for the quarter contracted 115 basis points over the previous year period to 42.29 percent. Total expenses were 93.44 percent of quarterly revenues, up from 90.74 percent for the same period last year. That has resulted in a contraction of 270 basis points in operating margin to 6.56 percent.
Operating income for the quarter was $31.77 million, compared with $43.09 million in the previous year period.
“Our ambitious omni-channel transformation continues to progress well. We are confident that the value proposition created by our exclusive and unique product remains strong, and our refined promotional strategy -- which benefited this period -- will contribute to gradual improvement in our gross margin rate over the coming quarters.” said Alex W. Smith, President and Chief Executive Officer.
Operating cash flow turns negative Pier 1 Imports has spent $46.21 million cash to meet operating activities during the nine month period as against cash inflow of $61.16 million in the last year period.
The company has spent $62.58 million cash to meet investing activities during the nine month period as against cash outgo of $51.59 million in the last year period. It has incurred net capital expenditure of $61.49 million on net basis during the nine month period, up 24.14 percent or $11.96 million from year ago period.
Cash flow from financing activities was $15.13 million for the nine month period as against cash outgo of $112.92 million in the last year period. It has spent net of $174.40 million on repurchase of common stocks.
Cash and cash equivalents stood at $33.04 million as on Nov. 29, 2014, down 74.23 percent or $95.16 million from $128.20 million on Nov. 30, 2013.
Working capital decreases marginally
Pier 1 Imports has witnessed a decline in the working capital over the last year. It stood at $344.76 million as at Nov. 29, 2014, down 2.15 percent or $7.59 million from $352.35 million on Nov. 30, 2013. Current ratio was at 2.07 as on Nov. 29, 2014, down from 2.20 on Nov. 30, 2013.
Cash conversion cycle (CCC) has decreased to 55 days for the quarter from 121 days for the last year period. Days sales outstanding were almost stable at 6 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 87 days for the quarter compared with 151 days for the previous year period. At the same time, days payable outstanding went up to 38 days for the quarter from 36 for the same period last year.
Debt increases substantially Pier 1 Imports has witnessed an increase in total debt over the last one year. It stood at $207.17 million as on Nov. 29, 2014, up 2,080.77 percent or $197.67 million from $9.50 million on Nov. 30, 2013. Total debt was 22.49 percent of total assets as on Nov. 29, 2014, compared with 1.09 percent on Nov. 30, 2013. Debt to equity ratio was at 0.65 as on Nov. 29, 2014, up from 0.02 as on Nov. 30, 2013. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
