Pier 1 is also included in the list of inefficient business managing retailers.
Last week, the distressed company released a dire earnings report mentioning larger-than-anticipated loss suffered by the company in the last quarter. Pier 1 plans to close its stores located at around 45 locations this year.
The company stated that it could shut down up to 15% of its currently operating 1,000 stores if it fails to achieve its sales targets, performance goals, and improve its earnings. Last year, the company also shuttered its 30 stores.
This disappointing news strongly hit the stock value. After the news published, the company’s shares price plunged rapidly by 25%.
The sales record of the company in its fourth quarter was terrible; despite it includes the holiday shopping season. Compared to its previous year’s fourth quarter, the sales in the recent quarter plunged by 13.7%.
Pier-1 appointed Deborah Rieger-Paganis as an interim CFO. She is a restructuring expert and the managing director at AlixPartners, a global consulting firm.
She said that she would remain dedicated to regulating disseminating financial situation of the organization with the aim to drive the business successfully in a positive direction.
The former CEO, Alasdair James left the company last December after he failed to turnaround business using his strategic approach. Pier-1 has been struggling to achieve the sales and earnings targets, as the majority of the customers prefer to shop digitally from online stores.
Pier-1 is going to implement its “action plan” which could possibly save up to $110 Million by the start of the financial year 2020.
Pier-1 has become one of the retailers that are at the verge of shrinking their businesses. The U.S. retailers have declared that 5,984 stores will shut down this year. Coresight Research reported that based on the last year’s closure announcement, the number exceeds by more than 100 for this year.
Kenny has studied Masters in Business Management. He is quite proficient in analytics and management skills. Kenny is creative and known for his leadership skills. In free time, Kenny guides editors on business and finance related topics. He has in-depth knowledge of business enterprises that helps him with job duties. Kenny is fully committed to handling the business column.