Pier 1 Imports Inc. shares have fallen more than 10 percent after the company announced first-quarter results that missed analysts’ outlook and the company slashed its outlook for 2015. For the first quarter ended May 31, the Fort Worth-based home furnishings retailer reported net income of $15.1 million, or $0.16 per share, compared to last year’s first quarter net income of $20.3 million, or $0.19 per share. Total sales for the first quarter were $419.1 million, a 6.1 percent increase versus $394.9 million in the year-ago quarter. Company comparable sales increased 6.3 percent during the first quarter, attributable to increases in total brand traffic, conversion and higher average ticket.
Gross profit for the quarter was $167.7 million, flat compared to gross profit of $167.6 million for the same period last year. As a percentage of sales, gross profit in the first quarter of fiscal 2015 was 40 percent, compared to 42.4 percent in the year-ago period. The company’s updated financial guidance for fiscal year 2015 called for company comparable sales growth, which includes e-Commerce, in the high-single digits; selling, general and administrative expenses relatively flat as a percentage of sales compared to fiscal 2014; EBITDA growth in the range of 9 percent to 14 percent, compared to previous guidance for growth of 11 percent to 17 percent; Interest expense of approximately $11 million; Earnings per share in the range of $1.14 to $1.22, utilizing a fully diluted share count of 95 million shares, representing year-over-year growth of 13 percent to 21 percent. This compares to previous guidance of $1.16 to $1.24 utilizing a fully diluted share count of 96 million.