Pier I Imports Furnishes Successful Earnings, Sinks on Shallow Guidance

Pier 1 Imports (NYSE: PIR) is down on Thursday after posting solid earnings, but coming up short on guidance.

The Forth Worth-based firm's EPS soared 25 percent year-over-year in the fourth quarter and matched estimates of $0.60.

Fourth quarter revenue climbed nearly 16 percent to $551.63 million, finishing about on par with expectations.

Fiscal 2013 EPS jumped 27.7 percent to $1.20 and edged the Wall Street consensus of $1.19.

Full-year revenue rose 11 percent to $1.7 billion, precisely the figure analysts hoped for.

Furnishing More Comp Store Sales

Pier 1's comparable store sales rose around eight percent to reach a three-year cumulative increase of over 27 percent.

Importing More Customers During the Holidays

Pier 1's December 2012 comparable store sales rose 8.2 percent. Over the past three years, it has experienced a 29.8 percent increase.

Exporting Cash to Shareholders

On April 4, Pier 1 announced a $0.05 per share quarterly cash dividend on its common stock. Shareholders of record on April 24 will be paid on May 8.

A New Pier in Hawaii?

According to Pacific Business News, Pier 1 is interested in purchasing a former Borders location in Lihue, Hawaii.

Although the company has several stores scattered among the Hawaiian Islands, this would be its first location on the island of Kauai. Lihue is the second largest city on this particular island and, according to the US Census Bureau, had a population of 6,455 in 2010.

Shallow Guidance

Pier 1 plans mid-single digit growth in comparable store sales during fiscal 2014.

The home furnishing importer and retailer anticipates a 22.6 percent increase in depreciation and amortization expenses to $38 million. And, it expects its effective tax rate to rise about 2.4 percent to approximately 38 percent.

The company estimates it will open around 30 stores and close or relocate 14 for a net gain of 16 stores.

Pier 1 expects fiscal 2014 EPS to close in the $1.26 to $1.31 range. At the middle-ground of $1.29, it would fall significantly short of the $1.38 analysts have projected.

Stock Below Water

After six consecutive days of gains, Pier 1 is on a downslide on word of its weak guidance. The stock is falling toward the $22 mark after closing well above $23 on Wednesday.

Pier 1 has sunk around five percent on Thursday.