Pier 1 Imports (PIR) Misses Q2 EPS by 4c; Refines Financial Model; Guides FY15 EPS

Pier 1 Imports (NYSE: PIR) reported Q2 EPS of $0.10, $0.04 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $418.6 million versus the consensus estimate of $426 million.

Company comparable sales increased 4.5% during the second quarter, attributable to increases in brand traffic, conversion and average ticket.

Refined Intermediate-Term Financial Model

The Company has created a new business model and refined its financial model and expects, in the subsequent two fiscal years, on an annual basis beginning with fiscal 2016, to achieve progressive improvement across all of its financial metrics, including the following goals:

• Total sales growth in the mid- to high-single digits;
• Increased gross profit, as a percentage of sales, driven by a combination of improvements in initial mark-up and fulfillment costs, as well as the optimization of store occupancy expense;
• Moderate leverage of selling, general and administrative expense;
• Reduced capital expenditures to within a range of $60 million to $70 million per annum; and
• Earnings per share growth of at least 10% based on a fully diluted share count of approximately 91 million.

Pier 1 Imports sees FY2015 EPS of $0.95-$1.05, versus the consensus of $1.13.

For earnings history and earnings-related data on Pier 1 Imports (PIR) click here.

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