Pier 1 (NYSE:PIR) tried to put a pretty face on its January results. Yes, sales were up 7%, but same-store sales (the most watched metric in retail) fell 2.9%. The company blamed "extreme weather" for the "below expectation" results, but nonetheless forecasts a "much improved year." (Weather permitting, no doubt.)
Curiously, extreme weather did not hurt other retailers' same-store sales. Wal-Mart's (NYSE:WMT) 5.7% gain exceeded its guidance of 3% to 5%. Costco (NASDAQ:COST), a Motley Fool Stock Advisor pick, reported a 12% gain. Even Abercrombie & Fitch (NYSE:ANF), after months of declining same-store sales, managed a 2.2% increase.
Department stores did well, too. Old-time retailer J.C. Penney (NYSE:JCP), for example, recorded a 6.4% increase.
For those thinking that warm clothing and the Super Bowl were behind the rising sales, consider Victoria Secret and Bath & Body Works parent Limited Brands (NYSE:LTD), which turned in a 23% jump in same-store sales. What, is Victoria Secret moving thermal underwear?
And by all indications, even the well-to-do managed to get out and spend. Neiman Marcus (NYSE:NMGA) reported "comparable revenue" up 12.2%.
So, why is it that everyone seems to be partying except Pier 1? Are its lambs' wool throws no longer warming the masses? Hard to say, but it does seem likely that Pier 1 needs to refresh its inventory and spruce up its image. Until it does, a 17 times earnings multiple seems a bit rich given forecasts of flat to "slightly positive" sales for February.
The good news is that Design Doctor Thom Filicia (Queer Eye for the Straight Guy) is set to appear nationally in the new Pier 1 ads. That may liven things up. Still, it might behoove investors to be fashionably late to this particular party.
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You can reach W.D. via email .
