Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Pier 1 Earnings: An Early Look

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Earnings season has begun, and on Thursday, Pier 1 Imports (NYSE: PIR  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Pier 1 has recovered from the brink of collapse during the bear market of 2008 and early 2009, and now, its stock is approaching all-time highs. Will the bounce in the housing market provide the catalyst Pier 1 needs to break to record levels? Let's take an early look at what's been happening with Pier 1 over the past quarter and what we're likely to see in its quarterly report.

Stats on Pier 1

Analyst EPS Estimate


Change From Year-Ago EPS


Revenue Estimate

$551.4 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will Pier 1 give investors what they want this quarter?
Analysts haven't budged much on their views of Pier 1's earnings prospects over the past few months. They've held steady on their calls for the most-recent holiday quarter, and they shaved a penny per share from their full-year fiscal 2014 consensus. But the stock has done quite well, rising more than 13% since early January.

The reason for Pier 1's strong performance lately is pretty simple: Demand for new homes has picked up, and when buyers move into a new home, they tend to buy home furnishings to go with it. Higher-end retailer Williams-Sonoma (NYSE: WSM  ) already announced solid results for its holiday quarter, especially citing growth in its home-furnishings segments as a big contributor to its overall results.

But last month, Pier 1 gave mixed guidance on its holiday quarter. Although it saw same-store sales gain almost 8% for the quarter, its earnings-per-share projections were somewhat disappointing, sending shares temporarily lower. More recently, mixed housing data has left the stock trading more turbulently.

The real key for the entire home-furnishings business is how they respond to the threat of online competition. Bed Bath & Beyond (NASDAQ: BBBY  ) has been relatively slow to ramp up its Internet-based business, and as a result, it was recently named in a study on showrooming as the most vulnerable to online competitors. For its part, Pier 1 has reinvigorated its Internet-based sales recently, creating a barrier against online retailers who could take away its market share.

In Pier 1's quarterly report, watch closely for signs of where Pier 1's sales are coming from. If the company can see growth in its Internet business, it will demonstrate further evidence that the retailer has carved out a niche it can defend in the future.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Click here to add Pier 1 to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2354616, ~/Articles/ArticleHandler.aspx, 9/30/2016 8:11:54 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:06 PM
PIR $4.24 Down -0.23 -5.15%
Pier 1 Imports CAPS Rating: *
BBBY $43.11 Up +0.93 +2.20%
Bed Bath and Beyon… CAPS Rating: ***
WSM $51.08 Up +0.66 +1.31%
Williams-Sonoma CAPS Rating: ***