Tomahawk, WI 9/23/2013 (BasicsMedia) – Pier 1 Imports Inc (NYSE:PIR) boasts of some 1,062 stores which are located all over the U.S as well as Canada. This is a global importer which has chosen to specialize on the importation of gifts and household furnishings which serve decorative purposes. This company has been quiet busy opening and closing some of is stores even in 2013, for what it refers to as strategic reasons. It mostly serves the needs of its customers through retail stores. It has opted to employ e-commerce stores to serve its customers as well. Why is PIR stock viewed as an interesting one?

 PIR’s Quarterly Net Income in 2013 Much Lower than 2012

 When the company recently announced its second quarter 2013 results, what stood out was that its net income of $17.8 million was much lower than the $26.2 million it reported during the same quarter in 2012. However, when you take a look at the company’s total sales, you begin to see why it is considered one of the most interesting in the stock market. Whereas its net income fell, the total sales increased to $395.6 million compared with the $3367.6 million which it announced over a similar period last year. Which business environment made this possible?

When PIR announced these results, its shares fell perhaps as an indication of how much the market didn’t appreciate what the company had posted. It is these types of happenings that have convinced many analysts to rate this stock a buy. I would also advice investors to start thinking of buying and adding this stock into their portfolio. This makes a lot of sense considering that the shares are probably going to continue on their downward trend for quite some time. For a company with a market cap of $2.155 billion, these results are not as encouraging as was hoped.

 PIR’s Profits Fall by 32%

 This is a company which enjoys quite substantial market capitalization as indicated above. But it is sad to note that its profits fell by a massive 32% on year-on-year basis from 2012. Despite the impressive increase in the company’s total sales in 2013 from last year’s figure, it was still much lower than what analysts were expecting. Many had projected that the company would raise its total sales to $404.64 million. Last year, PIR’s same store sales experienced growth of around 6.7% in the second quarter. The level of growth during the same period in 2013 is 3.5%.

 The company’s CEO has blamed poor marketing strategies, especially in the area of messaging, as the reason behind the poor sales experienced in the second quarter of 2013. The CEO has appreciated that the company could have benefited more from informing its customers that it was carrying out clearance and promotional activities. These activities would have attracted more customers to the PIR stores if they had been marketed well. For as long as the traffic is not what it is expected to be, it was going to be impossible for PIR to post better financials than it did.

The poor financials has made PIR to come up with an earnings per share expectation which is now much lower than it had previously posted.

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