Pier 1 Quarterly Sales Climb on Promotions, Spring Spending

By Retail FOXBusiness

Pier 1 Imports (PIR) reported a 7.9% jump in first-quarter sales and said it expects to match earnings-per-share estimates as the home furnisher continues to benefit from promotions and higher springtime spending.

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Revenue for the three months ended May 26 climbed to $361 million, compared with $335 million a year ago. Analysts in a Thomson Reuters poll were looking for slightly higher sales of $361.8 million.

Comparable sales -- a key growth metric for retailers that analyzes sales at stores open longer than a year -- jumped 7.2% on top of a year-earlier gain of 10.2%.

The Fort Worth, Texas-based retail chain, which reports full quarterly earnings on June 14, said it expects to post earnings per share of 16 cents, which would be four cents higher than last year and match the Street’s view.

Pier 1 chief executive, Alex Smith, touted the company’s “great in-store execution” and strong sales during the key Easter, spring, Mother’s Day and Memorial Day selling seasons, which he said is a reflection of its product assortment as well as promotional pricing.

“We are pleased to report another quarter of profitable sales growth,” Smith said.

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The results follow a long line of positive same-store sales growth in May, including Victoria’s Secret parent Limited Brands (LTD), Target (TGT) and TJX (TJX), which all reported on Thursday, as retailers benefited from improving demand and springtime bargains.