3 minutes

Pier 1 Imports (PIR) Adopts “PoisonPill” Measure to Discourage Takeover

Primary Analyst: Coresight Research
Contributors
Primary Analyst: Coresight Research
Insight Report

Executive Summary

  • Pier 1 Imports, under scrutiny by an activist investor, announced late Tuesday that it would institute a shareholder protection plan designed to discourage any single shareholder from acquiring a stake of 10% or more in the company.
  • The adoption of a so-called poison pill plan comes a week after hedge fund Alden Global Capital revealed that it had accumulated a 9.5% stake in the home-goods retailer and that it had plans to take a more active role.
  • Today, the company reported fiscal 2Q17revenues of $405.8 million, down 6.7% from the year-ago period. Comparable sales fell by 4.3%, which was far below the (1)%–1% comp growth the company had expected. Pier 1 also lowered its full-year guidance. The company now expects net sales to decline by 4%–6%; previous guidance called for a decline of 1%–3%. Full-year EPS is now expected to be $0.24–$0.32, compared with$0.32–$0.40previously.
You are currently viewing a preview of this report.

Please select an access option to view the full report. Hide Options -

Get unlimited access to all our research with one of our subscription plans.

View Subscription Plans
or

Contact us to purchase this report.

Contact us