Pier 1 Imports (PIR) Q3 Results Encouraging, Nomura Says

Nomura Securities analyst Jessica Schoen Mace reiterated a Buy rating and $19 price target on Pier 1 Imports (NYSE: PIR) following solid Q3 results.

Mace commented, "Pier 1 sales increased 4.1% in the third quarter to $485 million, including a comparable company sales increase of 2.5% or 3% in constant currency. Brand traffic increased 4.3% in 3Q, but store traffic was soft. Conversion
and ticket both increased, with significant conversion improvements online including on mobile devices. Importantly, the fourth quarter is off to a strong start with positive feedback from the Thanksgiving-Black Friday sales event. Cyber Monday was a record day for ecommerce, with 25% of sales online."

She added, "We are encouraged by the stabilization that has occurred in several aspects of the business. We are maintaining our FY15 EPS estimate of $1.00, and look forward to hearing an update on the company’s January 8th Holiday Sales call. We are increasing our FY16 EPS estimate to $1.12 from $1.10 driven by a higher gross margin estimate given improved confidence in the company’s ability to execute and benefit from its modified promotional strategy."

For an analyst ratings summary and ratings history on Pier 1 Imports click here. For more ratings news on Pier 1 Imports click here.

Shares of Pier 1 Imports closed at $13.90 yesterday.

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