Online is the New Buzzword for Pier 1

Pier 1 Imports (NYSE:PIR) will step up efforts in online shopping and aim to start 20 stores by next year as profits continued to grow. The home furnishings retailer announced a $115.2 million net profit, or $1.04 per share, for the fourth quarter. Income nearly doubled from $57.1 million for the same period the year before.

The imports-focused retailer has not yet been hurt by Amazon.com (NASDAQ:AMZN), but plans to build a new e-commerce platform and promote online purchases. Consumers will be allowed to reserve items online at “Pier 1 To-You” and pick them up in stores. The website is expected to be launched by July. The Texas-based company expects online sales to form 10 percent of its total sales by 2016.

Sales for the fourth fiscal quarter grew, but stayed short of expectations, climbing to $476.8 million from $426.6 million. Same-store sales rose 10.3 percent. For fiscal 2013, Pier 1 has projected earnings of $1.06 to $1.12 per share.

The company also plans to open 20 new stores in fiscal 2013 and projects earnings of between $1.06 and $1.12 per share. It opened 15 new stores in fiscal 2012. This year, Pier 1 will remodel six to eight stores and refurbish 100 others with new fixtures and lighting.

The company board announced a cash dividend of 4 cents per share for shareholders. It will be the company’s first dividend since July 2006. “The ongoing strength of our operating performance and long-term growth opportunities, combined with our solid financial position, and strong cash flow, provides us with the flexibility to return value to our shareholders,” CEO Alexander Smith said.

To contact the reporter on this story: Aabha Rathee at staff.writers@wallstcheatsheet.com

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