[ACCESSWIRE]
Upcoming AWS Coverage on Barnes & Noble Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 21, 2016 / Active Wall St. announces its post-earnings coverage on Pier 1 Imports, Inc. (NYSE: PIR) ("Pier 1"). The Company posted its third quarter fiscal 2017 (Q3 FY17) earnings on December 14, 2016. The Fort Worth, Texas-based Company's total net sales were down 0.4% y-o-y; however sales still managed to beat market consensus estimates of $467.6 million. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Pier 1 Imports' competitors within the Specialty Retail, Other space, Barnes & Noble, Inc. (NYSE: BKS), reported on November 22, 2016, its fiscal 2017 second quarter ended October 29, 2016. AWS will be initiating a research report on Barnes & Noble in the coming days.
Today, AWS is promoting its earnings coverage on PIR; touching on BKS. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=PIR
http://www.activewallst.com/registration-3/?symbol=BKS
Earnings Reviewed
During Q3 FY17, Pier 1 reported net sales of $475.90 million which came in marginally below the $478.05 million recorded in prior year's same period. The Company's comparable sales increased 1.8% y-o-y in Q3 FY17. Furthermore, e-commerce sales rose approximately 28% to $97.4 million in Q3 FY17, contributing approximately 20% to net sales, compared to 16% of net sales in the year ago corresponding quarter.
For the quarter ended November 26, 2016, the Retailer reported GAAP net income of $13.58 million, or $0.17 per share, compared to $10.92 million, or $0.13 per share, in the prior year's same quarter. The Company reported adjusted net income of $17.6 million, or $0.22 per share, in Q3 FY17, beating market estimates of $0.12 per diluted share.
In Q3 FY17, the Company inaugurated two stores and pulled shutters on three. It expects to close approximately 15 net stores in FY17. As on November 26, 2016, the total store count was 1,022.
Operating Metrics
Pier 1's Q3 FY17 gross margin came in at $196.39 million, or 41.3% of net sales, compared to $183.99 million, or 38.5% of net sales in last year's corresponding quarter. In Q3 FY17, merchandise margin improved to $286.4 million, or 60.2% of net sales from $268.6 million, or 56.2% of net sales, in Q3 FY16. The Company attributed the rise in merchandise margin to more cost efficient promotional strategy and improved operations within its distribution centers.
The home decor Company's Q3 FY17 operating income rose to $22.25 million, or 4.7% of net sales, from $19.66 million, or 4.1% of net sales in Q3 FY16. Furthermore, Pier 1's EBITDA increased to $35.9 million during Q3 FY17 from $32.6 million in Q3 FY16.
Balance Sheet Numbers
During the first three quarters of FY17, Pier 1's net cash provided by operating activities declined to $5.07 million from $41.86 million in the prior year's same period. As on November 26, 2016, the Company had cash and cash equivalents amounting to $86.21 million compared to $48.57 million recorded as on November 28, 2015. The Company reported net long-term debt of $199.37 million as on November 26, 2016, compared to $200.55 million as on November 28, 2015. Furthermore, Pier 1's inventories decreased approximately 5% to $479.83 million in Q3 FY17, from $503.00 million in the year ago same period.
Dividend
In its earnings press release, Pier 1's Board of Directors announced a quarterly cash dividend of $0.07 per share on its outstanding common stock. The dividend will be paid on February 01, 2017, to shareholders of record on January 18, 2017.
CEO Transition
In a separate press release on December 14, 2016, the Company announced that Terry E. London, Chairman of the Board of Directors will serve as interim President and CEO from January 01, 2017, coinciding with Alex W. Smith, the Company's current President and CEO's planned departure.
Earnings Outlook
In its guidance for Q4 FY17, Pier 1's management expects net sales to contact in the range of (3%) to (1%) with comparable sales growth in the range of (1%) to 1%. Merchandise margin for Q4 FY16 is forecasted to be in the range of approximately 56% to 57%. The Company projects GAAP earnings during Q4 FY17 to be between $0.26 per share and $0.30 per share; while adjusted earnings for the same period are anticipated to be in the range of $0.28 per share to $0.32 per share.
For full FY17, net sales is anticipated to be contract in the range of (4%) to (2%); while comparable sales growth is projected to be in the range of (2%) to flat. GAAP net earnings for FY17 are expected to be in the range of $0.30 per share to $0.34 per share; whereas adjusted earnings are forecasted to be between $0.37 per share to $0.41 per share.
Stock Performance
On Tuesday, December 20, 2016, the stock closed the trading session at $9.49, jumping 5.33% from its previous closing price of $9.01. A total volume of 3.89 million shares have exchanged hands, which was higher than the 3-month average volume of 2.91 million shares. Pier 1 Imports' stock price surged 63.90% in the last month, 135.25% in the past three months, and 71.04% in the previous six months. The company's shares are trading at a PE ratio of 34.76 and have a dividend yield of 2.95%.
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