Boston, MA 06/19/2014 (wallstreetpr) – Pier 1 Imports Inc. (NYSE:PIR) is crashing in early-morning trading session by 9.15% after the company reported it had cut its guidance growth, and warned of continued margin pressures, as well as promotions being rolled out by retailers in a bid of competing for cost-wary consumers. The company was still able to achieve 6.3% growth in sales reflecting increased traffic for imported brands.
Pier 1 Expecting $200M of Sales This Year
The company is also experiencing an increase in e-Commerce strength that reached 9% of total sales for the quarter. Going forward the company expects its sales momentum to remain strong with the ability of exceeding $200 million in 2015. For the first quarter, Pier 1, generated a net income of $15.1 million slightly lower compared to a net income of $20.3 million reported a year earlier.
Pier 1 Imports Inc. (NYSE:PIR)’s first quarter sales came in at $419.1 million representing an increase of 6.1%, up from $394.9 million reported a year earlier. Comparable store sales were also high by 6.3% attributed to an increase in brand traffic as well as higher average ticket. Pier 1 Import’s first quarter Gross profit remained flat at $167.7 million compared to a gross profit of $167.6 million reported for the same period last year.
Inventory up by 9%
Pier 1 Imports Inc. (NYSE:PIR) continues to remain strong financially highlighted by $220.6 million in cash and cash equivalents, its senior secured term loan for the first quarter stood at $200 million. Inventory for the first quarter totaled $417.6 million up from $383.3 million representing a 9% increase. Capital expenditures, primarily used for new store openings and upgrade of the existing ones totaled $15.3 million for the quarter
During the first quarter Pier 1 Imports repurchased a total of 5,701, 812 shares of its common stock at an average price of $18.84 a share at a total cost of approximately $107.4 million. Pier 1 Imports Inc. (NYSE:PIR) has downgraded its EBITDA growth for the year to between 9% and 14% from 11% and 17% earlier reported.
