Pier 1 Imports Inc (PIR) Earnings Disappoint, Guidance Lowered

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Pier 1 Imports Inc (NYSE:PIR) shares are trading down considerably in the after market this afternoon after the company reported disappointing earnings for their 2016 fiscal third quarter. Shares are down 13.8% or $0.82 as of publishing this story. Pier 1 Imports Inc (NYSE:PIR) has reported that their total sales have decreased 2.5% to $472.5 million for the quarter, when compared to the same period last year. Gross profit for the company has also decreased quarter-over-quarter to $178.5 million. The company has also cut their outlook for the fourth quarter.

Alex W. Smith, President and CEO, stated, “Our sales slowed in the third quarter, primarily reflecting soft store traffic. Notwithstanding, we’re pleased with store conversion – a testament to the exemplary job our store teams did in engaging with Pier 1 Imports’ customers. E-Commerce sales continued to demonstrate strong growth and represented approximately 16% of total sales in the period. Although top line results did not meet our expectations, strict expense control enabled us to deliver earnings per share within our guidance range. Additionally, we made further progress toward bringing our inventories in line, keeping us on track to close fiscal 2016 with inventory levels down approximately 10 percent from the prior year.”

The stock increased 3.85% or $0.22 during the last trading session, hitting $5.94. About 4.70 million shares traded hands or up 156.83% from the average. PIR has declined 55.66% since May 13, 2015 and is currently downtrending. It has underperformed the S&P500 by 51.98%.

From a total of 12 analysts covering Pier 1 Imports (NYSE:PIR) stock, 4 rate it a “Buy”, 2 a “Sell”, and 6 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $15.0 while the lowest target price is $5. The mean of all analyst targets is $9.91 which is 66.84% above today’s ($5.94) stock price. Pier 1 Imports was the topic of 16 analyst reports since August 25, 2015 according to the firm StockzIntelligence Inc. Telsey Advisory Group maintained shares on December 15 with a “Market Perform” rating. Credit Agricole maintained shares with a”Outperform” rating and a $9.50 target share price in their report from a September 25. UBS initiated PIR stock in a recent report from November 9 with a “Sell” rating. Zacks upgraded the rating on August 25. Zacks has a “Hold” rating and a $11 price target on shares. Finally, Deutsche Bank maintained the stock with a “Hold” rating in a report they issued on a September 25.

The institutional sentiment decreased to 0.9 in Q2 2015. It’s down 0.31, from 1.21 in 2015Q2. The ratio worsened, as 39 funds sold all their Pier 1 Imports Inc shares they owned while 61 reduced their positions. 29 funds bought stakes while 61 increased their total positions. Institutions now own 80.95 million shares which is 8.20% less than the previous share count of 88.18 million in 2015Q2.

Vnbtrust National Association holds 1.65% of its total portfolio in Pier 1 Imports Inc, equating to 420,850 shares. True Bearing Asset Management Lp owns 133,147 shares representing 1.56% of their total US portfolio. Moreover, Irving Magee Investment Management has 1.32% of their total portfolio invested in the company, equating to 368,429 shares. The California-based Kestrel Investment Management Corp has a total of 1.07% of their portfolio invested in the stock. Skyline Asset Management Lp, a Illinois-based fund reported 1.96 million shares owned.

Pier 1 Imports, Inc. is a global importer of home decor and furniture. The company has a market cap of $495.95 million. The Company’s activities consist of retail stores and an e-commerce Website conducting business under the name Pier 1 Imports, which sells a range of furniture, home furnishings, dining and kitchen goods, candles, gifts and other specialty items for the home. It has 8.72 P/E ratio. The Firm operates approximately 984 stores in the United States, 81 stores in Canada and an e-commerce Website.

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