Pier 1

Pier 1

Pier 1 Imports Inc. (PIR) on Wednesday reported a fiscal fourth-quarter loss of $68.8 million, after reporting a profit in the same period a year earlier.

The Fort Worth-based company said it had a loss of 85 cents per share.

The home decor company posted revenue of $412.5 million in the period.

For the year, the company reported a loss of $198.8 million, or $2.46 per share, swinging to a loss in the period. Revenue was reported as $1.55 billion.

In the final minutes of trading on Wednesday, the company's shares hit 65 cents. A year ago, they were trading at $3.57.

Amid all the financial news, the company’s chief financial officer, Nancy Walsh, is leaving after a year on the job. She will be replaced by Deborah Rieger, a director of consulting firm AlixPartners, which is working with the home-furnishings retailer. Pier 1 said it is implementing a plan designed to drive benefits in fiscal 2020 of approximately $100-$110 million by resetting its gross margin and cost structure. Approximately one-third of the benefits are expected to be realized in gross margin, with the remaining two-thirds coming from cost reduction. After reinvesting in the business, the company believes it will be positioned to recapture approximately $30-$40 million of net income and $45-$55 million of EBITDA in fiscal year 2020. After closing 30 stores in fiscal 2019, the company is considering closing up to 45 locations in fiscal 2020 as leases expire. Further, Pier 1 has conducted a review of its store portfolio and will be seeking occupancy cost reductions. The store closure number could increase to up to 15% of stores if the company is unable to achieve performance goals, sales targets, and reductions in occupancy and other costs..

“We are pleased to be sharing our fiscal 2020 action plan today, which is designed to reset our operating model and rebuild our business for the future,” said Cheryl Bachelder, interim CEO. “As anticipated, our fourth quarter sales and profitability were disappointing and reflect the execution issues we identified earlier in the year and have been working with urgency to correct. Since December, we assembled a capable leadership team, brought consulting expertise onboard, began a rapid diagnostic process and selected priority initiatives designed to improve our operating model and financial performance. Short term, we exited some legacy inventory, revamped the focus of our spring/summer merchandise and marketing, and implemented an organizational redesign in support of our go-forward plan.”

This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PIR at https://www.zacks.com/ap/PIR

(6) comments

Wise

Hopefully someone from Pier 1 is reading this....take a cue from Target and do a collab with Fort Worth’s own Grace Mitchell.
Pier 1’s product mix doesn’t feel refreshed - it feels like it’s the same thing over and over.

grahambrizendine

Pier 1 is not reading this unfortunately. It's the same old song and dance working their way toward bankruptcy. Revolving door of 'experts' and 'consultants' who continue to suck money out of the retailer for a couple years then depart. I feel bad for all of the non-exec employees working there. Constant fear with the writing on the wall and no umbrella to save them. This is not motivation. I said it before (check my comment history on Pier 1 over the last couple years)… the execs need to get a nominal salary and their upside is only based on the long-term success. The board needs to stand up and demand this structure of compensation. You better motivate your lowest level of employees. Shaving costs is only a temporary fix to help the balance sheet for a fiscal year or two; you can't do that forever. You better motivate and innovate, or Pier 1 is done. I have a job, but if you want someone to come in and shake it up, I'll let you pay me based on performance. I just feel like you've got the same old problem. Execs out of touch with the market and motivating their employees. Like I have said before... contact me. I live right down Forest Park. Being a lifelong FW resident, it's sad to see this local brand get railroaded by outsiders. It is time for a real change. Pier 1 board, are you listening? Someone better take the reins and actually make a meaningful move, or Pier 1 will lumber along to insolvency.

grahambrizendine

And when your APS agreement is to pay this interim CFO $50,000 a WEEK plus expenses (yes I read the 8-K)... certainly is not a motivating factor for your $12/hour store employees who are ultimately responsible for the success and failure.

grahambrizendine

When a former CFO doesn't even update their profile on Linked In saying that they worked at a company for over a year... there's a problem. Sad state of affairs at Pier 1.

Carolinewebb

It was nice to learn about Pier 1 Imports Inc. Financial conditions and action plan for the year in order to compensate loss amount during the past few years.
Caroline,
http://www.qualityassignment.co.uk/

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