Pier 1 Imports reported financial results for the fourth quarter and fiscal year ended February 28, 2015. Q4 net income was $33.1 million, or $0.37 per share.
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This compares to $42.6 million, or $0.41 per share in the fourth quarter ended March 1, 2014. In the fourth quarter of fiscal 2015, non-GAAP adjusted net income (excluding the after-tax effect of retirement related expenses for the company's former chief financial officer) was $35.1 million, or $0.39 per share.
Total sales for the fourth quarter were $543.6 million compared to $515.8 million in the same period last year. company comparable sales increased 5.7% (6.4% on a constant currency basis after adjusting for a 70 basis point impact attributable to the year-over-year devaluation of the Canadian Dollar) and reflect increases in brand traffic and average ticket, and online conversion.
Merchandise margin (the result of adding back delivery, fulfillment and store occupancy costs to gross profit) in the fourth quarter totaled $302.1 million, or 55.6% of total sales, compared to $292 million, or 56.6% of total sales in the fourth quarter of fiscal 2014.
The year-over-year decline in merchandise margin, as a percentage of total sales, is attributable to approximately $6.0 million of increased supply chain expenses, primarily incremental costs incurred within the company's distribution network during the quarter.
Incremental costs related to the company's distribution network – which impacts merchandise margin – will be ongoing in the first quarter of fiscal 2016, and will affect the first and second quarters. Gross profit in the fourth quarter totaled $214.4 million, or 39.4% of total sales, compared to $214.4 million, or 41.6% of total sales in the fourth quarter of fiscal 2014.
Fourth quarter selling, general and administrative expenses were $149.0 million, or 27.4% of total sales, compared to $133.9 million, or 26.0% of total sales a year ago.
Pier 1 Imports board declared a $0.07 per share quarterly cash dividend on the company's outstanding shares of common stock. The $0.07 quarterly cash dividend will be paid on May 6, 2015, to shareholders of record on April 22, 2015, and represents a 17% increase from the $0.06 cash dividend paid in the prior period. ■
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