Retail

What to Look for in Pier 1 Earnings

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Pier 1 Imports, Inc. (NYSE: PIR) is scheduled to report fiscal first-quarter financial results after the markets close on Wednesday. The consensus estimates are calling for a net loss of $0.05 per share on $420.05 million in revenue. The same period from last year had $0.08 in earnings per share (EPS) on $432.00 million in revenue.

Although fiscal 2016 was a challenging year, this company made solid progress toward stabilizing top line trends, cutting costs and reducing inventory levels. It also delivered another year of strong e-Commerce sales, which increased 45% on top of 193% growth in the 2015 fiscal year. A trend the company is looking to continue through fiscal 2017.

Management has said that it feels very good about its long-term positioning, as well as that its Pier 1 Imports brand is in excellent health. The company has full omni-channel capabilities and it is focused on improving operational execution. Although revenue and earnings are expected to show only modest growth in fiscal 2017, Pier 1 expects to achieve stronger performance in the second half of the year and accelerate growth in fiscal 2018 and beyond.

A few analysts weighed in on Pier 1 prior to the release of the earnings report:

  • Deutsche Bank initiated coverage with a Sell rating and a $5.50 price target.
  • Wolfe Research has a Perform rating.
  • Longbow Research initiated coverage with a Neutral rating.
  • BTIG research initiated coverage with a Neutral rating.
  • Topeka Capital Markets initiated coverage with a Buy rating.
  • Argus reiterated a Hold rating.
  • Morgan Stanley reiterated an Underweight rating with a $4 price target.
  • Merrill Lynch reiterated a Sell rating.
  • Credit Suisse reiterated a Hold rating.

So far in 2016 Pier 1 has outperformed the broad markets with the stock up over 5%. Over the past 52-weeks the stock is actually down 55%.

Shares of Pier 1 closed Tuesday down 2% at $5.23, with a consensus analyst price target of $6.10 and a 52-week trading range of $3.76 to $13.28.

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