Pier 1 Net Jumps 84 Percent in First Quarter

FORT WORTH, Texas--Growth in both sales and merchandise margins boosted Pier 1 Imports to an impressive 84 percent gain in first-quarter net income, to $14.1 million.

Net sales for the quarter, which ended on May 28, rose 9.3 percent to $334.6 million, including an increase of 10.2 percent in same-store sales, thanks for rises in store traffic and average ticket. The latter factor, along with managing inventory levels, helped Pier 1 to boost its gross margin for the quarter by 272 basis points to 40.1 percent. Selling, general and administrative expenses rose 8 percent on a dollar basis but slimmed down 37 basis points as a percentage of sales, to 32.6 percent.

Alex Smith, Pier 1's president and CEO, said the retailer's first quarter demonstrated "strength and sustainability in all of our businesses--top-line sales growth, strong merchandise margins, prudent cost controls, operating margin improvement, a strong balance sheet and ongoing cash generation."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017

    HFN's DIGITAL EDITION

    September 2017


    COVER STORY:

    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    ALSO IN THIS ISSUE:

    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.