Pier 1 Imports Inc (NYSE:PIR) announced preliminary sales and earnings per share data for the second quarter ended August 27, 2016.
Net sales for the second quarter decreased by approximately 6.7% compared to the same period a year ago. E-Commerce sales represented approximately 20% of net sales in the second quarter. Company comparable sales, which include e-Commerce, decreased approximately 4.3% compared to the same period a year ago. Second quarter loss per share is expected to be in the range of ($0.06) to ($0.05), excluding one-time items, if any, related to the planned departure of the Company’s Chief Executive Officer, which was announced separately today.
Alex W. Smith, President and Chief Executive Officer, stated, “Although ongoing store traffic challenges impacted our top line results, we were able to drive year-over-year improvement in our merchandise margin rate through a more balanced promotional strategy and improved operational execution in our distribution centers. We continue to focus on closely managing inventories and ended the quarter with inventory levels down approximately 10% from a year ago. We look forward to discussing our full financial results and key initiatives for fall and holiday during our upcoming conference call.” (Original Source)
Shares of Pier 1 are down 15.21% to $4.07 in pre-market trading Thursday. PIR has a 1-year high of $10.36 and a 1-year low of $3.76. The stock’s 50-day moving average is $4.82 and its 200-day moving average is $5.58.
On the ratings front, PIR has been the subject of a number of recent research reports. In a report released today, Credit Suisse analyst Seth Sigman downgraded PIR to Sell, with a price target of $4, which implies a downside of 16.7% from current levels. Separately, on the same day, Oppenheimer’s Brian Nagel downgraded the stock to Hold.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Seth Sigman and Brian Nagel have a total average return of 2.3% and 6.1% respectively. Sigman has a success rate of 52.4% and is ranked #1561 out of 4147 analysts, while Nagel has a success rate of 56% and is ranked #253.
Overall, 4 research analysts have rated the stock with a Sell rating, 7 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $5.27 which is 10% above where the stock closed yesterday.
Pier 1 Imports, Inc. engages in the provision of retail sales of decorative home furnishings, furniture, and gifts. Its products include decorative home furnishings, dining, kitchen goods, bath, bedding accessories, and specialty items for the home.