PIER ONE IMPORT’S DISASTROUS RESULTS

These results certainly jive with a housing recovery, jobs recovery, and consumers spending again.

Once you plow through all the PR bullshit and CEO bloviating about the glorious future of on-line sales, you get to the facts. And they paint a disastrous picture.

They also paint a picture of an idiotic greedy CEO playing the Wall Street buyback game.

Here is a link to the press release:

http://www.pier1.com/Press-Releases/ir_press-releases,default,pg.html?nav=left

Here are the disastrous facts:

  • Profit plunged by 49% versus last year’s August quarter.
  • Profit is down 37% over the first six months.
  • Revenue grew by 5.8%, but Inventory grew by 15.5% versus last year.
  • Inventory is up 36% in the first six months. This is a disaster in progress.
  • The boneheaded CEO of this retailer actually borrowed $198 million to buy back $155 million of stock. The stock is down 10% after hours to a new 52 week low. This idiot was buying back his stock at much higher prices. He deserves a bonus. Maybe he can issue himself some stock.

Day after day retailers report dreadful results, but the government and the MSM continue to lie and spew propaganda about the economic recovery. Results don’t lie, but politicians, bureaucrats, Wall Street shysters, and corporate media pundits do.

 

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Stucky

Admin keeps posting results for store I generally NEVER visit.

If I did shop at Pier One, I would be embarrassed to admit it.

Kill Bill
Kill Bill

Pier One was once in fashion back in the 80’s now its just a bunch of overpriced cheap ass crap. The stock buyback game is a symbol of coming demise.

Fred Hayek
Fred Hayek

The rampant stock buybacks of the last couple years are going to be fodder for case studies at business schools in years to come. And students are going to be bewildered by this insanely stupid, myopic practice.

“You mean . . business professionals thought it made sense to plow all their profits into debt to buy back shares when they were at an all time high, not a low but a high?”

TPC
TPC

@Stucky – “Admin keeps posting results for store I generally NEVER visit.

If I did shop at Pier One, I would be embarrassed to admit it.”

I’m not even sure what Pier One sells. I bought some cutesy owl salt shakers from there about 5 years ago (wife loves owls), but I still couldn’t tell you what they sell.

The furniture looks like slightly higher than target quality, but not quite Nebraska Furniture Mart, and nowhere near the quality I can find in smaller family owned shops.

Stucky

TPC

Shit. They sell shit. About 40% of sales are furniture, 60% knick knacks … dried flowers, candles, pottery, etc.

“Pier 1 prospered during the late 1960s and early 1970s by focusing on the baby boom generation, members of whom were looking for interesting, exotic goods such as love beads, incense, leather sandals, and serapes.”

Started out selling shit … and never stopped.

Maddie's Mom

@TPC,

They still sell owls.

And they’re desperately awaiting a visit from your wife. 😉

TPC
TPC

@Maddie’s Mom – She still loves owls, however a couple years ago we adopted a very small black cat (5.5 pounds) so now its owls and black cats.

Needless to say she’s a fan of Halloween.

Our cat:

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Econman

Pier 1 should have 110% off sales & make it up on volume.

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