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Pier 1 Imports Inc (NYSE: PIR) reported weaker-than-expected earnings for its fourth quarter.
The company out of Fort Worth, Texas, reported comparable sales decreased 13.7% compared to the 13-week period of fiscal 2018; the Company estimates that the shift of certain holiday selling days, which were not included in this year's fiscal fourth quarter, negatively impacted fourth quarter fiscal 2019 company comparable sales by approximately 750 basis points.
Net sales decreased 19.5% to $412.5 million compared to the fourth quarter of fiscal 2018. The company experienced a net loss of $68.8 million, or ($0.85) per share;
Inventory proved to be $347.6 million, flat to fiscal 2018 year end; and the cash and cash equivalents of $54.9 million at year end, $50 million of borrowings under the Company's FILO tranche and an undrawn revolver facility.
To quote interim CEO Cheryl Bachelder. "As anticipated, our fourth quarter sales and profitability were disappointing and reflect the execution issues we identified earlier in the year and have been working with urgency to correct.
"Since December, we assembled a capable leadership team, brought consulting expertise onboard, began a rapid diagnostic process and selected priority initiatives designed to improve our operating model and financial performance."
Pier 1 is implementing an action plan designed to drive benefits in fiscal 2020 of approximately $100-$110 million by resetting its gross margin and cost structure. Approximately one-third of the benefits are expected to be realized in gross margin, with the remaining two-thirds coming from cost reduction.
Shares opened Thursday down 5.8 cents, or 9%, to 58.76 cents
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