On a GAAP basis, Pier 1 reported EPS of $0.22, which excludes the estimated impact on net income of Hurricane Sandy. Same-store sales for the quarter rose 7.9% year-over-year.
Pier 1 also announced a 25% increase to the company’s quarterly dividend to $0.05 a share, and a third $100 million share buyback program.
The company’s CEO said:
This marks the Company’s first full quarter of e-Commerce sales and we’re pleased with the initial results, as the level of both new and existing customer visits indicates the long-term opportunity is significant. Indeed, we saw very strong traffic at both our stores and Pier1.com during the period, and trends have remained robust thus far in the holiday selling season.
The company guided fiscal fourth-quarter adjusted EPS at $0.57 to $0.61 ($0.55 to $0.59 on a GAAP basis) and expects same-store sales to rise in the mid single-digit range. The consensus estimate called for EPS of $0.58. The estimate is based on a comparable 13-week quarter, but the quarter has 14 weeks. The extra week will add about $0.02 to EPS according to the firm.
For the full 2013 fiscal year ending in February, Pier 1 expects adjusted EPS of $1.17 to $1.21. Same-store sales are expected to grow in the mid single-digit range. Actual EPS will get the same $0.02 bump from the 53-week fiscal year.
Gross profits rose 0.7% to 43.9% and operating income was up 9.1% in the third quarter. Net income fell slightly, however, by 0.4% to 5.6%. The rise in same-store sales is put down to an increase in store traffic and a higher average ticket. The CEO’s comments indicate that these trends have continued into the holiday shopping season, so perhaps the fourth quarter will be another pleasant surprise for shareholders.
Pier 1’s shares are up 1.5% in premarket trading this morning, at $19.30 in a 52-week range of $12.50 to $21.24. Thomson Reuters had a consensus analyst price target of around $22.90 before today’s results were announced.
Paul Ausick
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.