Pier 1 Imports, Inc. (NYSE:PIR)

well known and fundamentals, fundamentals, fundaments

Speculative play. Lots of inside buy activity. Stores have been around for ever with appeal that resonates with a lot of consumers. Should be able to capitalize on retiring baby boomers furnishing second and retirement homes with casual/resorty/tropical items.

Been there- many years- too many changes- too many sales at one time- too confusing to feel confident in getting the best price. Merchandise has much less life to it- much less culturally diversified. Ex.: Holiday '06 lacked expected cultural reflections and instead was based on color pairings of red/pink, green/turquoise or brown/gold/silver. Buy 1 vase now, vs. 3 decor pieces 8 years ago. Internally, the company has been dismantled and dis-heartened. Those who helped to triumph in it's heyday (and watched helplessly as poor choices in selection of merchandise were made) have been tossed in favor of new blood geared to market to an unresponsive sector who never acknowledged that they were targeted prospective buyers.

Pier is past its prime. It doesn't matter if they dump the wicker in the bay and bring in the next "Wicker replacement" (whatever that may look like), people are driving by the pier at high speed.

Too much competition...TGT can carry whatever PIR carries and sell it cheaper and to a much broader market base.

They are simply a HUGE Mess! Too much competition, bad product line choices, and their on the verge going lower!!Can I say Sinking Ship, and you can't scoop out the water fast enough!

Pier 1 Imports operates as a specialty retailer of imported decorative home furnishings and gifts in the United States, Canada, Mexico, and Puerto Rico. The company’s stores include three brand names: Pier 1 Imports, The Pier, and Pier 1 Kids.

The outlook for the company looks troubled in 2007 as the housing market in U.S is undergoing a sharp deceleration which is discouraging big ticket purchases like furnitures. Housing starts plunged by 20% in 2006 and looking ahead the weak sentiments are expected to exist which could hamper the performance of the company as it generates about 40% of its revenues from furniture related products. The financial performance of the company for the nine months ended November 2006 has been dismal with over 9.5% decline in the sales owing to poor customer traffic and ineffective marketing programs. Same store sales one of the key retail metrics declined by 11.6% and this trend has continued till February 2007.

Also, mortgage defaults are increasing in U.S, which could discourage further consumer spending, as consumers would shy away from making expensive purchases through borrowings. Company’s debt has increased massively over 2005 and higher interest expenses along-with increased marketing spends are taking their toll on the bottom-line, thereby widening the losses heavily. Looking ahead, the company plans to make improvements in the merchandise to drive sales. However, considering the rough environment and the weak financial performance, Pier 1 Imports arouses bearish sentiments at the prevailing price levels.

Competition has learned the

new ceo, but he comes from clothing.

For sale. Anyone? Anyone? No?

Possible turnaround or buyout story
Dirt cheap valuations but justified given string of losses. $2 in cash/$6.3 in market cap
Issues to monitor is the US dollar weakness, if this continues, will make their products more expensive, as well as competitive pressures from the likes of Target, Walmart, Bed Bath, etc. which offer cheaper yet comparable goods.

They need a complete remerchandising. Completely new fashion focus. They are Boring with a capital B. They're being eaten alive by Bed Bath Beyond, Target, etc.

woof

Two things can happen with Pier 1. Their effort to turnaround will succeed and the stock will rise, or they will be bought out at a premium to the current stock price.

Sales have been so lame for the past year that comps should be a slam dunk. Also decent buyout prospects.

*technicals
*more homes to decorate
*kids section

Mgt took its eyes off the ball. Founder, Luther Henderson must be spinning in his grave.

Ugh.

I don't think there's much I can say about Pier 1 that hasn't already been said. The downhill slide just looks unstoppable, image overhaul or not.