Pier 1 Imports reported financial results for the 2018 first quarter ended May 27, 2017.
Article continues below
First quarter fiscal 2018 net sales totaled $409.5 million, compared to $418.4 million in the same period last year.
Company comparable sales on a constant currency basis were flat compared to the first quarter last year.
Including a 20 basis point impact attributable to the year-over-year decline in the value of the Canadian Dollar relative to the U.S. Dollar, company comparable sales decreased 0.2% year-over-year.
The average number of stores operating in the first quarter of fiscal 2018 decreased approximately 1% compared to the first quarter last year. E-Commerce sales totaled $99.3 million, representing year-over-year growth of approximately 23%.
E-Commerce represented approximately 24% of net sales in the first quarter, as compared to approximately 19% of net sales in the first quarter of fiscal 2017.
Gross profit in the first quarter totaled $151.6 million, or 37.0% of net sales, compared to $149.0 million, or 35.6% of net sales in the first quarter of fiscal 2017.
First quarter merchandise margin (the result of adding back delivery and fulfillment net costs and store occupancy costs to gross profit) totaled $240.2 million, or 58.6% of net sales, compared to $232.5 million, or 55.6% of net sales in the first quarter of fiscal 2017.
The year-over-year improvement in merchandise margin is primarily attributable to improved operations within the company’s supply chain and also decreased clearance.
For the three months ended May 27, 2017, contribution from operations (gross profit less compensation for operations and operational expenses) totaled $74.9 million, compared to $68.7 million during the same period last year.
As a percentage of net sales, contribution from operations increased 190 basis points to 18.3% in the first quarter of fiscal 2018.
First quarter fiscal 2018 selling, general and administrative (SG&A) expenses were $140.2 million, or 34.2% of net sales, compared to $142.7 million, or 34.1% of net sales, in the year-ago period.
Cost initiatives implemented in the first quarter enabled the company to achieve a significant reduction in compensation for operations.
Those savings were partially offset by increases in other areas, primarily incremental investments in marketing, including television and digital advertising. ■