On June 21, Pier 1 Imports
- Net sales dipped by 5.2% as comparable-store sales declined 5.4%.
- Aggressive selling of "modern craftsman" merchandise led to a huge slump in the gross margin. Management was able to offset some of that decline by cutting operating costs.
- The company plans to close around 100 stores in the near future and will exit its "e-commerce and catalog business by August 31."
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$356.4 |
$376.1 |
(5.2%) |
|
Net Profit* |
($56.4) |
($22.8) |
N/A |
|
EPS |
($0.64) |
($0.26) |
N/A |
|
Diluted Shares |
87.8 |
87.1 |
0.8% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
24.5% |
33.8% |
(9.4) |
|
Operating Margin |
(15.6%) |
(9.0%) |
(6.5) |
|
Net Margin |
(15.8%) |
(6.1%) |
(9.8) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest |
$152.0 |
$235.2 |
(35.4%) |
|
Accounts Rec.* |
$20.7 |
$64.4 |
(67.8%) |
|
Inventory |
$334.1 |
$357.3 |
(6.5%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$96.7 |
$98.0 |
(1.3%) |
|
Long-Term Debt |
$184.0 |
$184.0 |
0.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($15.7) |
($22.2) |
N/A |
|
Capital Expenditures |
$0.8 |
$11.6 |
(93.4%) |
|
Free Cash Flow |
($16.5) |
($33.8) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Pier 1 Is Sinking
- The Kirkland Conundrum
- Foolish Forecast: Cost Plus, Profits Minus?
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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
