Pier 1 Imports Inc.: Pier 1 Imports, Inc. Reports First Quarter Fiscal 2019 Financial Results; Provides Q2 Outlook; Full Year Fiscal 2019 Guidance Remains Unchanged

FORT WORTH, Texas–(BUSINESS WIRE)–Jun. 27, 2018– Pier 1 Imports, Inc. (NYSE:PIR) today reported financial results for the first quarter ended June 2, 2018.
First Quarter Fiscal 2019 Summary
Company comparable sales decreased 8.2%;
Net sales decreased 9.2% to $371.9 million;
Net loss of $28.5 million, or ($0.36) per share, better than Company guidance; and
Management unveiled its three-year strategic plan, Pier 1 2021: A New Day.
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‘We unveiled our three-year strategic plan in April 2018, at which point we laid out our expectations for the first quarter, full year fiscal 2019 and our overall three-year plan. Our first quarter performance was in line with those expectations,’ said Alasdair James, President, and CEO. ‘One quarter into our three-year journey, we are on track with execution and preparing for the re-launch of the Pier 1 brand this fall. Our teams are focused on strengthening our value proposition through refreshed merchandise assortments and sharper pricing; creating a more compelling shopping experience through enhanced merchandising and messaging; and developing dynamic marketing programs to support our new brand positioning – ‘Pier 1: This is me’.’
First Quarter Fiscal 2019 Results of Operations

Net sales for the first quarter of fiscal 2019 decreased 9.2% to $371.9 million, compared to $409.5 million for the first quarter of fiscal 2018. Company comparable sales decreased 8.2% versus the year-ago period. The Company operated 997 stores at the end of the quarter, a decrease of 19 from the first quarter of fiscal 2018.
Gross profit for the first quarter of fiscal 2019 totaled $120.1 million, or 32.3% of net sales, compared to $151.6 million, or 37.0% of net sales, for the first quarter of fiscal 2018.

Selling, general and administrative (‘SG&A’) expenses for the first quarter of fiscal 2019 were $138.6 million, or 37.3% of net sales, compared to $140.2 million, or 34.2% of net sales, for the first quarter of fiscal 2018. The following table details the breakdown of SG&A expenses for the first quarter of fiscal 2019 as compared to last year (in millions).
13 Weeks Ended

June 2, 2018 May 27, 2017

Expense % Sales Expense % Sales

Compensation for operations $ 56.6 15.2 % $ 56.1 13.7 %
Operational expenses 20.6 5.5 % 20.6 5.0 %
Marketing 26.5 7.1 % 29.5 7.2 %
Other selling, general and administrative 34.9 9.4 % 34.0 8.3 %
Total selling, general and administrative $ 138.6 37.3 % $ 140.2 34.2 %

Operating loss for the first quarter of fiscal 2019 was $31.3 million compared to operating loss of $2.3 million last year. Net loss for the first quarter of fiscal 2019 totaled $28.5 million, or ($0.36) per share, compared to net loss of $3.0 million, or ($0.04) per share, a year ago. EBITDA (earnings before interest, taxes, depreciation and amortization) in the first quarter of fiscal 2019 was negative $18.7 million compared to $11.6 million in the first quarter of fiscal 2018.A reconciliation of this non-GAAP measure to GAAP is provided below.

Balance Sheet Highlights

As of June 2, 2018, the Company had $156.8 million of cash and cash equivalents, $192.5 million outstanding under its senior secured term loan and no working capital borrowings outstanding under its $350 million secured revolving credit facility. Inventories at the close of the first quarter decreased 21.2% to $329.7 million, compared to $418.4 million a year ago.
Fiscal 2019 Outlook

The Company provided the following financial guidance for the second quarter and full year of fiscal 2019. Full year company comparable sales are on a 52-week basis. Full year per share data assumes approximately 80.5 million shares outstanding on a fully diluted basis.

The Company will hold a conference call to discuss first quarter fiscal 2019 financial results at 3:30 p.m. Central Time/4:30 p.m. Eastern Time on Wednesday, June 27, 2018. A live audio webcast will be accessible at the Company’s website at https://investors.pier1.com. The call can also be accessed domestically at (866) 378-2926 and internationally at (409) 350-3152, conference ID 1376468.

Financial Disclosure Advisory
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (‘GAAP’). This press release references EBITDA, a non-GAAP financial measure.

13 Weeks Ended
June 2, 2018 May 27, 2017
$ Amount % of Sales $ Amount % of Sales
EBITDA (non-GAAP) $ (18.7 ) (5.0 )% $ 11.6 2.8 %
Less: Income tax benefit (6.1 ) (1.6 )% (1.8 ) (0.5 )%
Interest expense, net 2.9 0.8 % 2.7 0.7 %
Depreciation 12.9 3.4 % 13.7 3.4 %
Net loss (GAAP) $ (28.5 ) (7.7 )% $ (3.0 ) (0.7 )%

Pier 1 Imports is proud to offer one-of-a-kind-gotta-have-it-seriously-love-it products that help our customers tell their stories through home décor. Over the past 50 years we’ve grown from a single store to an omni-channel retailer reaching the whole of North America. Our customers shop us online and in store, and interact with us on social media. From the launch of our Pier 1 PICKS to our world renowned Papasan, we bring uniqueness and fun to the world of home décor. We are the perfect place for all your versions of ‘This is me.’ To get inspired or simply get to know us a little better, visit pier1.com.
Pier 1 Imports, Inc.

Pier 1 Imports Inc. published this content on 27 June 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 June 2018 20:24:02 UTC