Blog Exposure - Pier 1 Imports Announces Three-Year Strategic Plan on Its Analyst Day

LONDON, UK / ACCESSWIRE / April 23, 2018 / Active-Investors.com has just released a free research report on Pier 1 Imports, Inc. (NYSE: PIR). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PIR as the Company's latest news hit the wire. On April 19, 2018, the Company, which is a Texas-based omni-channel retailer specializing in imported home furnishings and decor, particularly furniture, table-top items, decorative accessories, and seasonal décor, shared a detailed view of its three-year strategic plan, named ‘Pier 1 2021: A New Day', and also discussed its financial outlook. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Pier 1 Imports most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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The Company's President and Chief Executive Officer (CEO), Alasdair James, and other key leadership members shared their analysis of the Pier 1 Imports brand and enterprise, and also discussed details of the operating strategies and growth plans under ‘Pier 1 2021: A New Day'.

Rationale for the New Strategy

Pier 1 Imports involved an external specialist to thoroughly assess its brand and enterprise over the past few months. As part of ‘Pier 1 2021: A New Day', the Company will build on its inherent strengths, which are a rich brand history; a loyal customer base; a highly competitive ecommerce platform; and a team with the talent, experience, and determination to succeed. Moreover, the Company has also identified several weaknesses to overcome and challenges to address. Pier 1 Imports intends to transform its business for long-term growth through this strategy and the underlying new initiatives and organizational changes.

Key Elements of the Strategy

Pier 1 Imports' three-year strategy ‘Pier 1 2021: A New Day' is designed to augment its brand proposition, capture operating efficiencies, and drive sales growth. The key points of this strategy are as follows:

• Under this strategy, Pier 1 Imports aims to improve the brand proposition by segmenting the marketplace and focusing on targeted consumer groups, refining merchandise assortments, delivering value, ensuring that the Company fits the style, and creating ease of shopping.

• The Company will emphasize on driving sales growth through new marketing strategies for content, digital communications and customer experience, redefining the shopping experience, and leveraging and strengthening the Company's omni-channel platform.

• Pier 1 Imports intends to capture operating efficiencies through initiatives across pricing and promotion, inventory reduction, sourcing, and supply chain.

• The Company anticipates total capital expenditure of $60 million in FY19. This comprises around $45 million for ‘Pier 1 2021: A New Day', to be mainly used towards information technology, supply chain, and stores. Besides, in FY19, the Company also intends to make selling, general, and administrative (SG&A) investments in marketing, corporate services, facilities planning, and store operations to achieve the objectives of the three-year plan. It must be noted that these investments would negatively impact profitability in FY19, but would drive sales and profitability in FY20 and beyond. These investments would position Pier 1 Imports to achieve its FY21 financial targets.

• An important element of the strategic plan is that Pier 1 Imports aims to self-fund the three-year plan through a combination of operating efficiencies realized under ‘Pier 1 2021: A New Day', and cash flow from operations. Therefore, the Company's Board of Directors made a strategic decision to discontinue the quarterly common stock dividend of $0.07 per share. Besides, the Board also decided to discontinue share repurchases for the time being.

Outlook for FY19

Additionaly, Pier 1 Imports shared its financial guidance for the first quarter and full fiscal year 2019, ending March 02, 2019.

For FY19, Pier 1 Imports expects full-year comparable sales on a 52-week basis of 1.5% to 2.5%. The Company expects GAAP net loss of $29 million to $14 million; GAAP loss per share of $0.36 to $0.17; and non-GAAP EBITDA of $30 million to $50 million.

For Q1 FY19, Pier 1 Imports projects comparable sales of (8.0%) to (7.0%). The Company expects GAAP net loss of $33 million to $30 million; GAAP loss per share of $0.41 to $0.37; and non-GAAP EBITDA of ($24) million to ($20) million.

Long-Term Financial Targets

As part of the strategy, Pier 1 Imports aims to achieve the following financial targets by the end of FY21:

• Sustainable net sales growth of approximately 4% to 6%;

• EBITDA margin in the range of 6% to 8%;

• Earnings per share in the range of $0.60 to $0.70.

Stock Performance Snapshot

April 20, 2018 - At Friday's closing bell, Pier 1 Imports' stock declined 3.30%, ending the trading session at $2.64.

Volume traded for the day: 3.04 million shares, which was above the 3-month average volume of 1.67 million shares.

After last Friday's close, Pier 1 Imports' market cap was at $288.39 million.

Price to Earnings (P/E) ratio was at 17.25.

The stock has a dividend yield of 10.61%.

The stock is part of the Services sector, categorized under the Specialty Retail, Other industry.

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