Please ensure Javascript is enabled for purposes of website accessibility

Why Pier 1 Imports Inc. Stock Popped Today

By Steve Symington - Mar 7, 2016 at 2:20PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The home decor specialist climbed after revealing encouraging preliminary results.

Image source: Pier 1 Imports

What: Shares of Pier 1 Imports (PIRRQ) were up 21.4% as of 11:30 a.m. EST Monday after the home furnishings retailer released better-than-expected preliminary fiscal fourth-quarter 2016 results.

So what: Quarterly revenue fell 1.3% year over year (down 0.4% at constant currency), including a 0.7% decline in company comparable sales (up 0.2% at constant currency) -- the latter of which is above guidance for comparable sales to fall 2% to 4% -- while earnings per share are expected to be in line with guidance at $0.18 to $0.22.

Analysts, on average, were expecting earnings of $0.20 per share on a 3.9% decline in revenue, to $522.1 million.

"Our preliminary top line results were slightly higher than our previous guidance," added Pier 1 CEO Alex Smith, "and reflect positive customer response to our holiday and seasonal assortments, as well as increased promotional and clearance activity during the period."

Now what: Smith also noted Pier 1 ended fiscal year 2016 with inventory levels down 15%, positioning it well for both merchandising and supply chain execution going forward. As it stands, Pier 1 will offer formal guidance for fiscal year 2017 with its official earnings report next month. But in the meantime given these solid results, it's hard to blame the market for bidding shares up on Monday.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Pier 1 Imports, Inc. Stock Quote
Pier 1 Imports, Inc.
PIRRQ

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
317%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.