Pier 1 Imports, Inc. (PIR) has reported a 24.34 percent rise in profit for the quarter ended Nov. 26, 2016. The company has earned $13.58 million, or $0.17 a share in the quarter, compared with $10.92 million, or $0.13 a share for the same period last year.
Revenue during the quarter went down marginally by 0.45 percent to $475.90 million from $478.05 million in the previous year period. Gross margin for the quarter expanded 278 basis points over the previous year period to 41.27 percent. Total expenses were 95.32 percent of quarterly revenues, down from 95.89 percent for the same period last year. This has led to an improvement of 56 basis points in operating margin to 4.68 percent.
Operating income for the quarter was $22.25 million, compared with $19.66 million in the previous year period.
Alex W. Smith, president and chief executive officer, stated, "Sales trends rebounded in the second half of November, following the election, which enabled us to deliver third quarter results well ahead of our forecast. Specifically, we had positive company comparable sales and higher than planned profits in the third quarter. We are making progress on our strategies to deliver shareholder value through our merchandising, marketing, supply chain and real estate initiatives. Our seasonal assortments are resonating with customers and we're seeing strength across nearly all our product categories. As always, we’re pleased with how our teams and associates are executing against our holiday plans."
For financial year 2017, Pier 1 Imports, Inc. expects revenue to decline in the range of 4 percent to 2 percent. The company projects diluted earnings per share to be in the range of $0.30 to $0.34 and projects diluted earnings per share to be in the range of $0.37 to $0.41 on adjusted basis.
For the fourth-quarter 2017, Pier 1 Imports, Inc. expects revenue to decline in the range of 3 percent to 1 percent. The company projects diluted earnings per share to be in the range of $0.26 to $0.30. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.28 to $0.32.
Debt comes down marginally
Pier 1 Imports, Inc. has recorded a decline in total debt over the last one year. It stood at $226.37 million as on Nov. 26, 2016, down 4.70 percent or $11.18 million from $237.55 million on Nov. 28, 2015. Total debt was 26.10 percent of total assets as on Nov. 26, 2016, compared with 26.99 percent on Nov. 28, 2015. Debt to equity ratio was at 0.84 as on Nov. 26, 2016, down from 0.88 as on Nov. 28, 2015.
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