Pier 1 Imports Plummets After Big Q4 Earnings Miss, Appoints Interim CFO

Pier 1 Imports Inc PIR reported a big fourth-quarter earnings miss Wednesday.

Earnings came in at $(0.85), missing estimates by 62 cents per share. Sales came in at $412.506 million, missing estimates by $13.516 million. The company says it's positioned to recapture roughly $30-$40 million of net income and $45-$55 million of EBITDA for 2020.

"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."

Highlights

• Comp sales decreased 13.7 percent
• Net sales decreased 19.5 percent
• Inventory of $347.6 million
• Cash and cash equivalents of $54.9 million

Pier 1 Imports shares fell more than 19 percent, trading at 52 cents per share in the after-hour session.

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