Pier 1 Q4 net income rises, sets three-year growth plan

Fort Worth, Texas -- Pier 1 Imports reported Thursday that net income for the quarter ended Feb. 26 surged 65% to $57.1 million, from $34.5 million a year earlier.
 
The home décor retailer cited improving sales, cost control efforts and strong merchandise margins for the substantial improvement.

Pier 1 also announced a three-year growth plan that includes investing $200 million of capital into its operations and starting a $100 million share buyback.

Revenue rose 8% to $426.6 million from $396 million, helped by better traffic, an improved conversion rate and higher average ticket. Same-store sales increased 8.9%.

For the month of March, the sales measure climbed 11.3%.

For the full year, profit increased 15% to $100.1 million. Annual revenue improved to $1.4 billion from $1.29 billion.

The company's three-year growth plan includes improvements to existing stores, including a rollout of new fixtures, lighting upgrades and other enhancements. The plan also includes an effort to speed up Pier 1's online initiative, with plans to boost online to at least 10% of revenue within five years. The plan includes having sales of $200 per retail square foot and having an operating margin of at least 10% of sales within three years.