Pier 1 Imports (NYSE: PIR) reported on Thursday that its fiscal second-quarter earnings climbed 58% as decorative home furnishings and gifts retailerâ€™s sales soared even as it receivedÂ income tax benefit.
The company also upwardly revised its lower and upper range of full-year earnings outlook to $1.08-$1.14 from previous estimate of $1.10-$1.16 a share.
Pier 1 has made an astoundingÂ turnaround since the last recession, when it sales plunged as high rate of unemployment level and falling consumer spending hurt its sales while strong competition from discount retailers such as Target Corp (NYSE: TGT) and Wal-Mart Stores Inc. (NYSE: WMT) eroded PIRâ€™s market-share. Â The company was on the verge of bankruptcy and at that time Pier 1 charted out a three year growth plan.
As a result in recent quarters, Pier 1â€™s growth momentum picked up thanks to its modified stores and better merchandising which resulted in heavy footfalls, strong same-store-sales and higher average receipt per customer.
Now the company is focused on boosting its online sales, setting up new stores and redesigning its existing locations.
Commenting over the results and companyâ€™s future strategy, Pier 1â€™s Chief Executive said to analysts in a conference call, â€śThe combination of our strong operating results and solid financial condition provide us with the flexibility to continue executing our three-year growth planâ€¦ We’re building our e-commerce platform, further improving the store portfolio, strengthening our infrastructure and returning value to our shareholders.â€ť
For the quarter ended August 25, Pier 1 posted net earnings of $26.2 million, or 24 cents a share, compared with $16.6 million, or 14 cents a share, in the year earlier quarter.
However, the latest results also included an income tax benefit of $5.9 million in addition to an interrelated $2.8 million accrued interest reversal.
After including onetime and some other expenses, earnings a share for the quarter stood at 19 cents.
Revenue rose 8.3% to $367.6 million while gross margin stood at 41.2% up from 39.6% in the corresponding period of last year. Both revenue and earnings were in line with managementâ€™s expectations.
Earlier Pier 1 had reported that its same-store sales during the fiscal second quarter the rose 6.7% compared with 10.5% growth, in the year earlier period