This is Why Pier 1 Imports Shares Are Going Crazy
PIR Stock Soars On Strong Sales
Pier 1 Imports Inc (NYSE:PIR) stock traded up 19% after hours as its third-quarter financial results were released on Wednesday.
The release was mainly full of good news for the company, which saw its e-commerce sales grow approximately 28% to $94.7 million and represent roughly 20% of net sales. The earnings per share landed at $0.17, an increase over Q3 2016, which reported a $0.13 earning per share. (Source: “Third Quarter Fiscal 2017 Results of Operations,” Pier 1 Imports Inc, December 14, 2016.)
While comparable sales for Pier 1 Imports increased 1.8%, net sales decreased 0.4%.
This comes on the heels of a recent shakeup in the top position in the company. The board of directors has appointed Terry E. London, Chairman, to the position of Interim President and Chief Executive Officer, effective January 1, 2017. This will follow current CEO Alex W. Smith’s departure on December 31. (Source: “Pier 1 Imports, Inc. Appoints Terry London Interim President and CEO,” Pier 1 Imports Inc, December 14, 2016.)
“Sales trends rebounded in the second half of November following the election, which enabled us to deliver third quarter results well ahead of our forecast,” Smith said in a press release. “We are making progress on our strategies to deliver shareholder value through our merchandising, marketing, supply chain and real estate initiatives. Our seasonal assortments are resonating with customers and we’re seeing strength across nearly all our product categories. As always, we’re pleased with how our teams and associates are executing against our holiday plans.” (Source: Ibid.)
Net sales for the third quarter decreased 0.4% to $475.9 million, compared to $478.0 million in the same period last year. Pier 1 Imports also operated 33 fewer stores compared to a year ago.
Between the recent change at the helm of Pier 1 Imports and the strong third-quarter showing, the company is looking to finish out 2016 strong and hit the ground running in the new year. The question is, can this good showing be parlayed into prolonged growth for the company?