3.4100 -0.07 (-2.01%)
Pre-market: 7:25AM EST
|Bid||0.0000 x 800|
|Ask||5.9600 x 800|
|Day's range||3.4600 - 3.8200|
|52-week range||3.0400 - 31.0000|
|Beta (5Y monthly)||3.78|
|PE ratio (TTM)||N/A|
|Earnings date||14 Apr 2020 - 19 Apr 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||14 Jan 2018|
|1y target est||4.00|
Bed Bath & Beyond will have a challenging year ahead, said CFRA retail analyst Camilla Yanushevsky.
Retailers closed more than 9,000 stores last year and news that Pier 1 will close 450 this year signals more trouble for traditional retailers this year.
(Bloomberg) -- Pier 1 Imports Inc. shares plunged close to 40% a day after the home-furnishings retailer reported more falling sales, plans to trim staff and close hundreds of stores.The company has also drafted a bankruptcy plan and canceled some orders, according to people with knowledge of the matter. Late on Monday, Pier 1 reported a wider third-quarter loss and about an 11% decline in comparable sales, a key measure for retailers.The stock tumbled to as low as $3.16 before paring much of the decline. As of 12:46 p.m. in New York, shares were down 9%.The Fort Worth, Texas-based company has posted multiple quarters of declining sales and losses as competition intensified and shoppers defected to e-commerce players. Pier 1 on Monday said lower sales were due to fewer customer visits to its stores and that its third-quarter loss increased to $59 million from $50 million.“The broader challenge that’s plagued the entire industry is that foot traffic has slowed,” Bloomberg Intelligence analyst Poonam Goyal said. “Pier 1 sold furniture, but also smaller home items. Some of those items are impulse purchases and if consumers aren’t in the stores, they don’t make additional purchases.”Restructuring ExpertsAlong with the bankruptcy plan, the retailer last month made a presentation to creditors that envisioned a smaller company with about $900 million in annual sales, according to the people with knowledge of the matter. It’s also canceling some orders and has held talks with current lenders about providing Chapter 11 financing.In a filing Monday, the company said it expanded its board with the appointment of two directors, both with restructuring experience. Pamela Corrie, a restructuring attorney, has served as a managing director at Carl Marks Advisors since February 2018, while Steven Panagos was vice chairman of the recapitalization and restructuring group at Moelis & Co. from April 2009 to June 2018. Both were consultants to the Pier 1 board prior to their appointments, according to the filing.Pier 1’s term loan due in 2021 stood at around 27 cents on the dollar with no market trades on Monday, according to people familiar with the pricing. The price signals that creditors expect to take heavy losses if the company files for court protection.(Updates with new board appointments and term loan trading from penultimate paragraph.)\--With assistance from Katherine Doherty.To contact the reporters on this story: Olivia Rockeman in New York at firstname.lastname@example.org;Jonathan Roeder in Chicago at email@example.comTo contact the editor responsible for this story: Sally Bakewell at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
The company is the latest retailer struggling in a market dominated by e-commerce giant Amazon.com Inc and other retail stalwarts like Walmart Inc as more consumers shift to online shopping and look for the latest trends. Pier 1 has drafted a bankruptcy proposal and made a presentation to creditors last month, with a plan to create a smaller post-bankruptcy company with about $900 million in annual sales, a person familiar with the matter said on Monday. The company also held discussions with lenders about potentially providing financing that would help the retailer continue operating while under bankruptcy protection, the person said.
(Bloomberg) -- Pier 1 Imports Inc. is planning to dismiss about 40% of its headquarters staff and shut about 450 stores in an attempt to overhaul the troubled home furnishings business.The retailer has drafted a bankruptcy plan and last month made a presentation to creditors that envisioned a smaller company with about $900 million in annual sales, according to people with knowledge of the matter. It’s also canceling some orders and has held talks with current lenders about providing Chapter 11 financing, said the people, who asked not to be identified because the process is private.The company’s shares plunged as much as 30% on the news, and were hovering down about 17% at $5.175 when trading was halted. Pier 1 then reported a wider quarterly loss and confirmed it would reduce staff, shut almost half its stores and close some distribution centers. The headquarters staff cuts affect about 300 employees, the people said.A representative for Pier 1 declined to comment, but the company acknowledged in its quarterly regulatory filing that there’s substantial doubt about its ability to stay solvent. A Chapter 11 bankruptcy allows a company to keep operating while it works out a plan to turn around the business and pay its creditors.“As Pier 1’s losses deepen, the planned large-scale store closures and cost cuts will likely be insufficient to turn around the business in time to address the company’s looming debt maturities, making restructuring or bankruptcy highly likely scenarios,” said Raya Sokolyanska, an analyst at Moody’s Investors Service, in an e-mailed statement.Pier 1 has posted multiple quarters of declining sales and losses amid a raft of new competitors. On Monday, it reported its third-quarter loss widened to $59 million from $50 million after sales declined 13% to $358.4 million.It’s led by Robert Riesbeck, a turnaround manager named as chief executive officer in November. He’s cutting expenses by about half, including canceling some existing orders to align Pier 1’s buying with plans for a smaller store base, one person said.Store ClosingsFort Worth, Texas-based Pier 1 had 942 outlets in the U.S. and Canada as of Nov. 30, with 4,000 employees as of March 2019.Shoppers have been defecting to new e-commerce players like Wayfair Inc. and conventional giants like Walmart Inc. that have expanded in the category.Clearing out unsold goods depressed sales last year, but the early response from customers to its new merchandise was positive, the person said. The company posted $1.55 billion of revenue in its fiscal year ended March 2, a 14% drop from the previous 12 months.Pier 1’s term loan due 2021 was quoted around 27 cents on the dollar, a sign that creditors expect to take heavy losses if the company files for court protection.(Updates with going-concern warning and Moody’s statement, starting in the fourth paragraph)To contact the reporters on this story: Lauren Coleman-Lochner in New York at email@example.com;Matt Townsend in New York at firstname.lastname@example.org;Katherine Doherty in New York at email@example.comTo contact the editor responsible for this story: Rick Green at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Pier 1 Imports, Inc. (NYSE:PIR) today reported financial results for the third quarter ended November 30, 2019 and provided a business update.
(Bloomberg) -- Pier 1 Imports Inc. is planning a significant increase in store closings as the distressed home-furnishings chain seeks to cut costs and turn around operations.The company expects to announce the new round of shutdowns when it reports results for its third fiscal quarter next week, according to people with knowledge of the plan. The company aims to restructure out of court, in part by closing stores and using the savings to boost liquidity, said the people.Filing for bankruptcy is an option under consideration if Pier 1 falls short of its goals, said the people, who asked not to be identified because the process isn’t public yet. The company also expects to disclose cuts in its debt load, listed at more than $300 million in its previous quarterly report.Representatives for Fort Worth, Texas-based Pier 1 declined to comment. The shares fell more than 5%. Pier 1 posted eight straight quarters of declining sales and six consecutive quarterly losses as shoppers defected to new e-commerce players like Wayfair Inc. and conventional giants like Walmart Inc. that have expanded in the category. Turnaround executive Robert Riesbeck took over as chief executive officer in November, almost a year after Pier 1 replaced a previous CEO and said it would explore strategic alternatives.The company is working with a team of advisers to restructure operations, including Kirkland & Ellis LLP, AlixPartners LLP and Guggenheim Partners LLC. Representatives from those firms declined to comment.Pier 1 lost $199 million in its last fiscal year on $1.55 billion in sales. During its September earnings call, the company said it would close about 70 stores in fiscal 2020, and that the number likely would increase as talks with landlords progressed. Pier 1 had more than 950 outlets in the U.S. and Canada as of Nov. 4, with 4,000 employees as of March 2019.Shares of the company fell 37 cents to $6.23 Friday, down from $31 last February. Pier 1’s term loan due 2021 was quoted around 26 cents on the dollar, a sign that creditors expect to take heavy losses if the company files for court protection.The retailer doesn’t own a lot of property, with Pier 1 leasing its corporate headquarters, stores and almost all of its distribution and fulfillment centers, according to its annual regulatory filing.(Updates with share reaction starting in the fourth paragraph.)\--With assistance from Eliza Ronalds-Hannon, Lisa Wolfson and Shannon D. Harrington.To contact the reporters on this story: Lauren Coleman-Lochner in New York at email@example.com;Katherine Doherty in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, Dawn McCartyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Pier 1 Imports, Inc. (PIR) (“Pier 1” or the “Company”) today announced that the New York Stock Exchange (NYSE) has accepted the Company’s business plan to regain compliance with NYSE continued listing standards. “We are pleased that the NYSE has accepted our plan to regain compliance with its continued listing standards,” said Robert Riesbeck, Chief Executive Officer. As previously disclosed, on August 5, 2019, Pier 1 received notice (the “Notice”) from the NYSE that it was no longer in compliance with NYSE continued listing standards set forth in Section 802.01B of the NYSE’s Listed Company Manual due to the fact that the Company’s average global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, its total stockholders’ equity was less than $50 million.
Pier 1 Imports, Inc. (PIR) (“Pier 1” or the “Company”) today announced the appointment of Robert Riesbeck as Chief Executive Officer and as a director of the Company, effective as of the close of business today. Mr. Riesbeck will also continue to serve as Chief Financial Officer. As planned, Cheryl Bachelder, who has served as Interim Chief Executive Officer since December 2018, has stepped down from that role, also effective as of the close of business today, and will continue in her position as a member of Pier 1’s Board of Directors.
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