EmailStory Stocks®
Archive
Last Update: 11-Apr-13 07:52 ET
Pier 1 Imports shares fall 4% following downside guidance
Pier One (PIR $22.44 -0.90) reported fourth quarter earnings of $0.60 per share, excluding non-recurring items, in-line with the Capital IQ consensus of $0.60 (co pre-announced Q4 EPS of $0.59-0.60 on March 7th) ; revenues rose 15.7% year/year to $551.63 million versus the $547.1 million consensus. The company issued downside guidance for FY14, sees EPS of $1.26-1.31, excluding non-recurring items, versus the $1.38 consensus. Comparable store sales on a 13-week basis increased 7.9% versus an increase of 10.3% in the 13-week quarter of last year. Strong comparable store sales results for the quarter were primarily attributable to increases in store traffic and higher average ticket. Fourth quarter merchandise margins at the store level were relatively flat compared to the same period last year. Guidance Metrics and Details: Co sees FY14 Comparable store sales growth in the mid single-digit range; sees EBITDA growth in the range of 14% to 18%. "We are confident that our proven operating model and disciplined approach to investing will continue to drive meaningful long-term growth in sales and earnings. Now that our transformation to a multi-channel retailer is well underway, the business is at an important inflection point. This year, we will be making prudent investments, including additional headcount, to support our growth. In fiscal 2014, we expect to achieve a mid-single digit comp store sales gain, improve gross profit and modestly leverage expenses to drive a double-digit increase in EBITDA. We also expect to deliver a strong increase of 8% to 12% in earnings per share, which reflects higher depreciation versus fiscal 2013 and the normalization of our tax rate this year. Additionally, we plan to continue returning value to our shareholders through share repurchases and cash dividends. Looking at fiscal 2015 and beyond, as we begin to scale our e-Commerce business and other strategic initiatives more dramatically, we anticipate that EBITDA and earnings per share will grow at similar rates, with expected increases in the mid-teens."
