(By Balachander) Pier 1 Imports Inc. (NYSE:PIR) reported a jump in quarterly earnings as higher store traffic and average ticket drove sales growth and the retailer of decorative home furnishings boosted its full-year forecast.
On a non-GAAP basis, earnings per share (EPS) increased 36 percent to 19 cents from 14 cents, in line with market expectations. Net income jumped 58 percent to $26.23 million.
Sales rose 8.3 percent to $367.6 million, matching consensus estimates. Comparable store sales grew 6.7 percent.
Merchandise margins improved to 60.1 percent from 59.4 percent. Gross profit as a percentage of sales expanded 160 basis points to 41.2 percent.
Looking ahead for the full year, the company now expects non-GAAP EPS in the range of $1.10 to $1.16 from prior expectations of $1.08 to $1.14, while analysts expect $1.16. Its sees comparable store sales increase in the range of mid single-digits.
The stock, which has been trading in the 52-week range of $8.83 to $19.62, ended at $19.55 on Wednesday.