Dallas Pier 1 Imports posted a profit of $35 million during the fourth quarter, a strong improvement from last year when the company posted a net loss of $29 million.
Pier 1’s successful fourth quarter and strong 2010 fiscal year are partly due to an increase in sales, driven by a 6.5% gain in same-store sales for the fourth quarter, and an upswing in December traffic and higher receipt totals on average.
In the fourth quarter, Pier 1 Imports posted a profit of $35 million on revenue of $395.9 million, up from a net loss of $29.4 million on revenue of $389.2 million.
For the entire fiscal year of 2010, which ended on Feb. 27, Pier 1 Imports posted a profit of $86.8 million, up from a net loss of $129.25 million a year earlier.
Pier 1 credited strategic cost reductions for some of its success. The company closed 38 Pier 1 Imports locations in fiscal year 2010 and currently has 1,054 locations still operating.
By the end of fiscal year 2010, the company had $313 million in inventory, a lower level than last year and cash and cash equivalents valued at $188 million.
Looking ahead to fiscal year 2011, the company’s CEO and President Alex Smith said he expects “huge organic growth potential.”
“Although it is a long time until Christmas, the year has started well,” Smith said. “March comparable-store sales, which benefited somewhat from the earlier Easter holiday, increased 19.4% compared to a decline of 9.7% last year, and were driven by increases in traffic, conversion rate and average ticket.”