Categories Consumer, Retail, U.S. Markets News

Will Pier 1 Imports stock fall create an opportunity to buy?

Pier 1 Imports Inc. (PIR) stock has fallen over 82% in the past year and there are just a few days left for the home furnishings retailer to receive the non-compliance notice from the NYSE as the stock is below $1. Investors remained concerned about the declining margins but they believe the stock could be a good investment.

Majority of the analysts recommended a “hold” rating on the stock. Wall Street analysts covering the stock expect it to reach $0.81 in the next 52 weeks. They believe that the stock could struggle in the near term due to the miss of executive chief after the departure of Alasdair James as CEO.

The company has appointed a longtime board member Cheryl Bachelder as interim CEO during mid-December. But investors concerns have been rising due to the retailer’s step in considering strategic alternatives, including a potential sale. Traders were unsatisfied with the company’s new chief and its recent third-quarter results.

In the recent third quarter, the company’s results slipped to a loss from a profit last year, due to a double-digit dip in revenues. The bottom line was also negatively impacted by charges related to establishing a valuation allowance against certain deferred tax assets. Net sales plunged 11.9% due to a 10.5% decrease in comparable store sales as well as a decline in store count.

The ‘New Day’ strategic plan is yet to yield the desired results. The flawed execution of the plan has hurt the earnings performance in the recent quarters. Despite this, the company has unveiled plans to embark on an aggressive cost reduction program that will yield results beginning 2020. The company lowered capital spending plans for fiscal 2019, bringing its planned capital expenditures down by $20 million to $40 million. The company has taken proactive steps to improve profitability and cash flow.

Pier 1 Imports stock drops 14% after Q3 results miss estimates

Investors believed the company could return to profitability and the stock would spike upwards to reach a high of $7.50 within nine months. This is based on the company’s expectations that new products would begin flowing into the business in the fourth quarter and therefore expecting higher inventories by year-end. Also, capital expenditures are anticipated to be further reduced in fiscal 2020, according to Pier 1 Imports earnings call.

Another concern that the company faces is store traffic as traffic continues to be one of its big drivers, which could turn Pier 1 Imports to profitability. Going forward, the company is reviewing how to reach its core customer and draw them more frequently to their stores. Pier 1 Imports is expected to seek the assistance of marketing mix optimization for driving the traffic with the aid of digitalization.

Analysts expect the company to report a loss of $0.20 per share on revenue of $429.91 million for the fourth quarter, and a loss of $1.60 per share on revenue of $1.57 billion for fiscal 2019. They fear the recovery process could take more than a year.

The market experts believe that the stock could turn to trade on the Over the Counter Bulletin Board (OTCBB) or Pink Sheets. Investors are worried that if this happens then bankruptcy is around the corner for the company but there remained a rare chance of this. The road is tough for the company to turn profitable and come out from the non-compliance of NYSE listing requirements.

Shares of Pier 1 Imports opened lower on Thursday and is trading in the red territory. The stock has fallen over 96% in the past five years and over 55% in the past three months.

 

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Comments

  1. Pingback: Leandro Farland
  2. Pingback: Chirurgie Tunisie
  3. Pingback: fue email
  4. Pingback: Local
  5. Pingback: Hybrid Learning
  6. Pingback: Student Grievances
  7. Pingback: fue
  8. Pingback: Higher education
  9. Pingback: Centrifuges
  10. Pingback: Dental Training
  11. Pingback: pull ups
  12. Pingback: Fiverr Earn
  13. Pingback: Fiverr Earn
  14. Pingback: fiverrearn.com
  15. Pingback: fiverrearn.com
  16. Pingback: fiverrearn.com
  17. Pingback: fiverrearn.com
  18. Pingback: fiverrearn.com
  19. Pingback: fiverrearn.com
  20. Pingback: aussiechon puppies
  21. Pingback: french bulldogs
  22. Pingback: Fiverr
  23. Pingback: future university
  24. Pingback: french bulldog
  25. Pingback: FUE
  26. Pingback: FUE
  27. Pingback: Office relocation
  28. Pingback: Classic Books 500
  29. Pingback: FiverrEarn
  30. Pingback: FiverrEarn
  31. Pingback: FiverrEarn
  32. Pingback: pupuk anorganik
  33. Pingback: partners
  34. Pingback: energy drinks
  35. Pingback: fort bite
  36. Pingback: french bulldog
  37. Pingback: frenchie stud
  38. Pingback: Betting tips
  39. Pingback: FiverrEarn
  40. Pingback: FiverrEarn
  41. Pingback: live sex cams
  42. Pingback: live sex cams
  43. Pingback: live sex cams
  44. Pingback: FiverrEarn
  45. Pingback: FiverrEarn
  46. Pingback: FiverrEarn
  47. Pingback: FiverrEarn
  48. Pingback: FiverrEarn
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: FiverrEarn
  56. Pingback: FiverrEarn
  57. Pingback: rings
  58. Pingback: Situs Slot Online
  59. Pingback: Situs Slot Online
  60. Pingback: FiverrEarn
  61. Pingback: FiverrEarn
  62. Pingback: cheap sex cams
  63. Pingback: canine probiotics
  64. Pingback: live sex cams
  65. Pingback: live sex cams
  66. Pingback: rare breed-trigger
  67. Pingback: 늑대닷컴
  68. Pingback: Slot online mobile
  69. Pingback: nangs sydney
  70. Pingback: superslot
  71. Pingback: allgame
  72. Pingback: 918kiss
  73. Pingback: หวย24
  74. Pingback: moisturizer
  75. Pingback: pg slot
  76. Pingback: cybersécurité
  77. Pingback: Dating Classes
  78. Pingback: apply evisa online
  79. Pingback: 6.5 grendel ammo
  80. Pingback: 7mm-08 ammo
  81. Pingback: SaaS Attorney
  82. Pingback: itsMasum.Com
  83. Pingback: nangs sydney
Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top