Shares of Pier 1 Imports Inc (NYSE:PIR) are way down today after the company reported putrid numbers for the latest quarter, and reduced their guidance once again. The Fort Worth, Texas headquartered company, run by CEO Alexander Smith reported net income of just $10.9 million for the quarter ending November 28, 2015. This is a huge 40% dropoff year-over-year. At the same time, the company reported a decrease in sales by 2.5% ($472.5 million) and same store sales fell by 0.7%.
Some may be beginning to question if the company needs to make some major changes to their business plan in order to remain competitive and recoup some of their previous business.
Pier 1 Imports’ (NYSE:PIR) full year forecast was also lowered again to between $0.42 and $0.46, which is much lower than one of the previous forecasts of $0.64.
The stock is down 19.33% or $1.15 following the news, hitting $4.8 per share. About 13.48 million shares traded hands or 591.28% up from the average. PIR has declined 53.55% since May 14, 2015 and is downtrending. It has underperformed the S&P500 by 51.29%.
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 106.46% above today’s ($4.8) 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 $500.77 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 7.82 P/E ratio. The Firm operates approximately 984 stores in the United States, 81 stores in Canada and an e-commerce Website.