Revenue during the quarter went down marginally by 2.58 percent to $528.35 million from $542.32 million in the previous year period. Gross margin for the quarter expanded 286 basis points over the previous year period to 39.16 percent. Total expenses were 91.53 percent of quarterly revenues, down from 93.80 percent for the same period last year. This has led to an improvement of 227 basis points in operating margin to 8.47 percent.

Operating income for the quarter was $44.76 million, compared with $33.61 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $58.50 million compared with $45.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 266 basis points in the quarter to 11.07 percent from 8.41 percent in the last year period.

Terry E. London, Interim President and Chief Executive Officer, stated, "We are pleased to conclude the year with strong fourth quarter results. We gained momentum in the second half of the year, as our initiatives to drive improved financial performance took hold. Notably, we strengthened our top-line trend, highlighted by positive company comparable sales, improved merchandise margins, controlled operational costs and increased profitability. Our omni-channel platform is enabling us to compete effectively in a challenging environment and positions us to deliver long-term success and increased shareholder value."

For financial year 2018, Pier 1 Imports, Inc. expects revenue to grow in the range of 2 percent to 3 percent. The company projects diluted earnings per share to be in the range of $0.46 to $0.52.

The company has spent $43.07 million cash to meet investing activities during the year as against cash outgo of $51.69 million in the last year. It has incurred net capital expenditure of $44.11 million on net basis during the year, down 14.84 percent or $7.69 million from year ago.

The company has spent $33.43 million cash to carry out financing activities during the year as against cash outgo of $97.20 million in the last year period.

Cash and cash equivalents stood at $154.46 million as on Feb. 25, 2017, up 34.06 percent or $39.24 million from $115.22 million on Feb. 27, 2016.

Working capital decreases marginally
Pier 1 Imports, Inc. has witnessed a decline in the working capital over the last year. It stood at $318.69 million as at Feb. 25, 2017, down 2.90 percent or $9.52 million from $328.21 million on Feb. 27, 2016. Current ratio was at 2.09 as on Feb. 25, 2017, down from 2.33 on Feb. 27, 2016.