NEW YORK (Reuters) - Pier 1 Imports (PIR.N) posted a 19.4 percent burst in Mar same-store sales, assisting to send the shares to their tip turn in roughly 3 years, as consumers outlayed some-more openly on furnishing their homes.
The association additionally showed a estimable climb in quarterly margins, helped by stronger pricing for the wares, that range from wicker chairs to rugs and booze glasses.
Its shares rose 13.6 percent midday to $8.25 after attack a high of $8.47. Just one year ago, the batch was trade at 61 cents.
Pier 1"s climb in Mar sales at stores open at slightest a year comes on tip of a 6.5 percent reported enlarge for the fourth quarter, that finished in late February.
"Everyone is really vehement that the gait is significantly took off in the initial quarter," pronounced Keybanc Capital markets researcher Bradley Thomas. An early Easter legal holiday that helped alternative retailers usually increased same-store sales at Pier 1 by 3 percent to 4 percent in March, he estimated.
Pier 1"s fourth-quarter net income was $35 million, or thirty cents a share, compared with a year-earlier net loss of $29.4 million, or 33 cents a share.
Excluding items, the association warranted 32 cents a share, in line with the analysts" normal estimate, according to Thomson Reuters I/B/E/S.
Sales rose 1.7 percent to about $396 million.
Merchandise margins for the fourth entertain finished Feb twenty-seven rose to 55.8 percent from 44.3 percent a year earlier.
HOME GOODS HIATUS
Like incomparable rivals Williams-Sonoma (WSM.N) and Bed Bath Beyond (BBBY.O), Pier 1 is benefiting from renewed direct for home products after a prolonged consumer hiatus.
On Wednesday, Bed Bath Beyond reported gain that kick expectations. Its shares were up 4.3 percent on Thursday.
"It has prolonged been strong that we can carry out costs and enhance sell margin," Pier 1 Chief Executive Officer Alex Smith pronounced in a statement. "Now with a somewhat some-more active economy, we are starting to see top-line improvements."
He additionally pronounced the association had some-more room to enlarge sales, as sales per block feet were well next the company"s peak.
"Even though the economy has softened a little, the business are still not spending as openly as they did before to the recession," Smith pronounced during a call with analysts.
The association is right away sporting some-more pieces of musical equipment similar to finish tables and side tables rather than massive couches and armoires. And distinct before years when it offering fewer equipment in large numbers, Pier 1 is additionally giving shoppers some-more choices.
"We perspective well above-plan Mar sales and domain as an additional denote that new merchandising at Pier 1 is resonating with customers," Oppenheimer researcher Brian Nagel pronounced in a note to clients. Pier 1 "represents the majority constrained handling domain liberation story between small-cap hardlines."
(Additional stating by Shradhha Sharma in Bangalore and Brad Dorfman in Chicago; Editing by Gopakumar Warrier, Lisa Von Ahn and Gunna Dickson)
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