💥Another Gangbusters Quarter from Pier 1 (Long Slow Deaths)💥
Callback to previous Pier 1 Imports ($PIR) coverage here (Q1 ‘19 earnings summary), here (Q4, fiscal ‘18), and here ($71mm in cash remaining). Unfortunately, this will be our last coverage of the retailer because it appears to have pulled off a miracle turnaround of epic proportions: it CRUSHED Q2 earnings and appears to be well on its way to reclaiming “iconic” status!
THIS THING IS A STEAMING TURD.
It’s even worse than we initially tweeted. Gross profit was 16.7% vs. 26.3% last year. The company’s operating loss expanded to $93.1mm compared to $62.5mm a year ago; it reported a net loss of $100.6mm or $24.29/share ($51.1mm and $12.68/share loss last year). The company noted “lower average customer spend” and “decreased store traffic.” And it sank $7mm into professional fees to help it right the ship. Management surely would’ve gotten torn up on the earnings call except, well, only one analyst was actually on the call. Nobody cares anymore. Anywho…
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BEAT YOUR COMPETITION, WITH PETITION.