Summary
- Margins and Comparable Sales, Total Sales have been in decline and getting worse. Company specific issues as BBBY is doing much better.
- Company bought back shares while performance decline was accelerating.
- CEO leaving and management fighting activist through poison pill.
- Stock could tank if guidance misses.
Pier 1 (NYSE:PIR) directly imports home decor and furniture and sells these products in its stores and website (pier1.com). 93% of its $1.8 billion in revenues are generated in the United States where it is present at 953 out of its total of 1032 locations. The remaining 79 locations exist in Canada while the company in the past was in Mexico and El Salvador as well. The stock came to my attention when it appeared as a potential investment by my value model.
Over the past 10 years, sales have grown at a low annual rate of 0.6%. Operating income and earnings have been positive for the last 7 years after 4 years of losses. A dividend has been paid for the last 4 years; however, book value has been decreasing.
