Pier One reported fourth-quarter earnings Wednesday that topped analysts’ estimates while its top line benefited from a 28% increase in e-commerce sales.
For the quarter ended Feb. 25, Pier One earned an adjusted 34 cents a share on sales of $528.4 million. Analysts had expected earnings of 33 cents a share on sales of $530.8 million.
The company reported profit of $30.1 million, or 37 cents a share, for the full year, while posting $1.83 billion in revenue.
“We gained momentum in the second half of the year, as our initiatives to drive improved financial performance took hold,” interim CEO Terry E. London said in a news release. “Notably, we strengthened our top-line trend, highlighted by positive company comparable sales, improved merchandise margins, controlled operational costs and increased profitability.”
“Our omni-channel platform is enabling us to compete effectively in a challenging environment and positions us to deliver long-term success and increased shareholder value,” he added.
Same-store sales for the first quarter increased 0.2% from the prior year while e-commerce sales totaled $103.1 million, representing year-over-year growth of approximately 28%. E-commerce represented 19.5% of net sales in the fourth quarter, as compared to approximately 15% of net sales in the fourth quarter of fiscal 2016.
For the first quarter, Pier One is forecasting comparable sales growth of 1% to 2% and flat to 1% net sales growth. “With our omni-channel capabilities firmly in place, we are focused on optimizing our new business model to maximize efficiency while reinvesting in customer-facing activities to drive sales,” CFO Jeffrey N. Boyer said in a news release.
In trading Wednesday, the company’s shares fell as much as 4% before rallying to close at $7.25, down 0.14%. Since the beginning of the year, the stock has dropped 15%.