Fort Worth, Texas-based Pier 1 Imports saw comparable-store sales increase 8.9% in the fourth quarter ended Feb. 26. For the full year, comparable-store sales surged 10.9%, compared with an increase of 1.5% in the prior year.
CEO Alex Smith called 2010 "truly an exceptional year," as the retailer achieved annual operating income for the first time in six years.�
In the fourth quarter, Pier 1 reported net income of $57.1 million, compared with last year?s fourth quarter net income of $34.5 million. Total sales were $426.6 million, up 7.7%.�
For the year, net income was $100.1 million, compared with net income of $86.8 million in fiscal 2009.
"The journey we started four years ago to return Pier 1 Imports to profitability and beyond has reached its initial destination -- profitability -- but we are by no means done," said Smith.
The company unveiled a three-year growth plan designed to drive sales, further improve profitability and increase shareholder value. It will invest $200 million into the business and return value back to its shareholders through a $100 million initial share repurchase program, Smith said.�
The goal of the initiative is to achieve sales of $200 per retail square foot and drive operating margin to at least 10% of sales within three years.
"We are now positioned offensively, rather than defensively," Smith said.
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