Pier 1 shares sink as CFO quits, fourth-quarter results disappoint
Shares of Pier 1 Imports Inc. slumped in Wednesday's extended session after the chief financial officer quit abruptly and the company posted weak fourth-quarter results. Pier 1 named Deborah Rieger-Paganis interim chief financial officer following the departure of Nancy Walsh as the company seeks to cut costs amid a double-digit drop in comparable sales. Separately, the retailer reported it swung to a fourth-quarter loss of $68.8 million, or 85 cents a share, from a profit of $15 million, or 19 cents a share, a year earlier. Revenue fell to $412.5 million from $512.2 million and same store sales declined 13.7% year-on-year. The company is considering the possibility of closing up to 45 stores in fiscal 2020 as leases expire. "Pier 1 has conducted a review of its store portfolio and will be seeking occupancy cost reductions. The store closure number could increase to up to 15% of stores if the company is unable to achieve performance goals, sales targets, and reductions in occupancy and other costs," said the retailer in a statement. In January, the company received notice from the New York Stock Exchange that it could be delisted as it failed to maintain an average closing share price of $1 for more than 30 consecutive trading days. Pier 1 has six months to regain compliance. Pier 1 shares sank 12% after hours.
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