Courtesy of Benzinga.
Pier 1 Imports, Inc. (NYSE: PIR) today announced a new three-year growth plan commencing in fiscal 2013, as well as updated financial goals. The new Board-approved plan is designed to drive profitable top and bottom-line growth, expand market share and increase shareholder value as the Company evolves into a multi-channel retailer. The plan includes:
Building a best-in-class e-Commerce platform
Improving the store portfolio through refurbishments, remodels, new openings and strategic relocations
Strengthening the Company’s infrastructure through investments in technology, processes and systems
Investing $200 million in capital over the next three years
Returning value to shareholders through share repurchases and quarterly cash dividends
Alex W. Smith, President and Chief Executive Officer, commented, “We are excited to unveil our new three-year growth plan, which reflects our commitment to increase shareholder value through initiatives and growth strategies designed to further improve sales and profitability. I am pleased to note that we accomplished a great deal in the first year under our original plan, which we unveiled in April 2011. In fiscal 2012, we made substantial improvements to our existing store base, opened 15 new locations, enhanced our planning and allocation systems, repurchased 8% of our common stock and importantly – we’re well underway with the development of our e-Commerce platform that will support our evolution into a multi-channel retailer as we prepare for the launch of ‘Pier 1 To-You’ this summer. We also surpassed our three-year goal to achieve operating margins of 10%, reporting full-year operating profit of $155 million, or 10.1% of sales.”
Mr. Smith continued, “Our achievements in fiscal 2012 were the result of hard work and dedication throughout the entire organization. As we continue to transform the business and look ahead to new opportunities, we are committed to further improving sales productivity and delivering strong profitability. To that end, we have elevated our new three-year goals and now expect to achieve sales of $225 per retail square foot and an operating margin of at least 12% by fiscal 2015. Additionally, we believe the online opportunity is significant for our unique and proprietary merchandise. We expect to be able to leverage the success of our ‘Pier 1 To-Go’ capability to drive site traffic and conversion when we launch ‘Pier 1 To-You’ in late July. We continue to expect that online sales will contribute at least 10% of total revenues by fiscal year 2016.”
For more Benzinga, visit Benzinga Professional Service, Value Investor, and Stocks Under $5.
