Pier 1 Imports (PIR) Tops Q4 EPS by 2c, Guides FY17 EPS Below Consensus

Pier 1 Imports (NYSE: PIR) reported Q4 EPS of $0.23, $0.02 better than the analyst estimate of $0.21. Revenue for the quarter came in at $542.3 million versus the consensus estimate of $526.76 million.

Company comparable sales rose 0.7%

GUIDANCE:

Pier 1 Imports sees FY2017 EPS of $0.42-$0.50, versus the consensus of $0.49.

Pier 1 Imports sees Q1 2017 EPS of ($0.08)-($0.04), versus the consensus of $0.06.

Jeffrey N. Boyer, EVP and Chief Financial Officer, stated, “As we focus on rebuilding long-term profitability, we expect to capture improvement in merchandise margin, balance our fixed cost base through the optimization of our store portfolio, and implement cost containment initiatives across the enterprise. Our outlook for fiscal 2017 assumes some top- and bottom-line pressure during the first half, with sales and earnings gaining momentum in the third and fourth quarters. Most notably, our profitability in the first half will be impacted by investments in marketing – including our return to television earlier this month – as well as higher clearance levels and the final tranche of legacy supply chain costs. Additionally, our top-line results will reflect the timing impact of Memorial Day, which shifts from our first fiscal quarter into our second fiscal quarter this year.”

The Company provided the following financial guidance for full-year fiscal 2017:

• Company comparable sales growth, which includes e-Commerce, of approximately 1% to 3%;
• Net sales growth to be approximately flat versus fiscal 2016;
• Merchandise margin, as a percentage of sales, of approximately 56% to 57%;
• SG&A expenses, as a percentage of sales, are expected to deleverage approximately 50 basis points as compared to fiscal 2016;
• Depreciation of approximately $56 million;
• Earnings per share in the range of $0.42 to $0.50, utilizing a fully diluted share count of approximately 80.0 million shares; and
• Capital expenditures of approximately $55 million.

The Company provided the following financial guidance for the first and second quarters of fiscal 2017:

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

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