On April 12, home-furnishings retailer Pier 1 Imports
- While Pier 1 is still sinking, as net sales fell 6.4% and same-store sales dropped 11%, the results weren't as bad as analysts had initially expected.
- Unusual charges and the effects of adopting a new accounting pronouncement forced diluted earnings further into negative territory. Without these charges, the company would have lost only $0.14 from continuing operations.
- Pier 1 carries a lowly one-star rating in The Motley Fool's CAPS community. Investors may want to consider shopping at Williams-Sonoma
(NYSE:WSM) , because it has a more favorable four-star rating, as do Target(NYSE:TGT) , Costco(NASDAQ:COST) , and J.C. Penney(NYSE:JCP) . The big-box behemoths carry a fair share of home furnishings and are putting constant pressure on the smaller guys -- a bad omen for Pier 1.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$473,712 |
$506,022 |
(6.4%) |
|
Net Profit |
($58,696) |
($9,976) |
N/A |
|
EPS |
($0.67) |
($0.11) |
N/A |
|
Diluted Shares |
87,654 |
86,883 |
0.9% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2007 |
Q4 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
24.62% |
31.97% |
(7.35) |
|
Operating Margin |
(12.68%) |
(1.97%) |
(10.71) |
|
Net Margin |
(12.39%) |
(1.97%) |
(10.42) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$167,178 |
$246,115 |
(32.1%) |
|
Accounts Rec. |
$21,437 |
$13,916 |
54.0% |
|
Inventory |
$360,063 |
$368,978 |
(2.4%) |
|
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$95,609 |
$105,916 |
(9.7%) |
|
Long-Term Debt |
$184,000 |
$184,000 |
0.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($104,905) |
($64,297) |
63.2% |
|
Capital Expenditures |
$28,427 |
$49,578 |
(42.7%) |
|
Free Cash Flow |
($133,332) |
($113,875) |
17.1% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Warren Buffett's Priceless Investment Advice
- Foolish Forecast: Pier 1 Is Sinking
- 70 Times Better Than the Next Microsoft
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.
