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Showing posts with label Williams Sonoma. Show all posts
Showing posts with label Williams Sonoma. Show all posts
Friday, December 14, 2012
Investopedia: Pier 1 Continues To Perform At A High Level
It's a beautiful thing when a company makes the transition from turnaround to good operator, and home furnishings retailer Pier 1 (NYSE:PIR)
seems to be doing exactly that. Comp growth continues to impress,
margins are looking good and the company has several initiatives
underway that should drive higher sales and/or margins. I wouldn't be in
any hurry to leave this party were I already in the room, but new
investors might want to consider the valuation today before diving in
with their own money.
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Thursday, September 20, 2012
Investopedia: Opacity Doesn't Help The Cause At Bed Bath & Beyond
Investors always seem to want more information from companies, and
there's certainly a point of diminishing returns for companies when it
comes to their level of disclosure. Nevertheless, I think Bed Bath & Beyond (Nasdaq:BBBY)
is doing its shareholders a disservice by not breaking out its costs
and charges in more detail in its earnings press release. As it stands, I
don't think Bed Bath & Beyond is an especially compelling retailer
at today's prices.
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Thursday, August 23, 2012
Investopedia: The Market Has More Than Caught Up With Williams-Sonoma
It would seem that a lot of investors had a vested interest in seeing Williams-Sonoma (NYSE:WSM)
make solid progress on its growth recovery. While performance is indeed
looking better at this multi-brand housewares retailer, today's
valuation seems to assume not only ongoing improvement, but also little
economic risk in the near-term.
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Tuesday, June 26, 2012
Investopedia: Q1 Results Highlight The Risks At Bed Bath & Beyond
Occasionally, companies report earnings
that really can be read and interpreted in opposite, but equally valid,
ways. That seems to be the case with housewares superstore operator Bed Bath & Beyond (Nasdaq:BBBY).
Pessimists can point to weak comp growth despite promotions as proof of
weakening fundamentals, while optimists can argue that this quarter's
weakness was as expected and the company's recent acquisitions show a prudent aggression towards building the business.
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Wednesday, June 20, 2012
Investopedia: Can Pier 1 Rekindle The Fire?
By any reasonable standard, Pier 1 Imports (NYSE:PIR)
has delivered an exceptional turnaround. It wasn't really that long ago
when people were writing this company off as hopeless and pointing to
Warren Buffett's investment in the retailer as a sure sign (yet again)
that he had lost his touch. Since then, the stock has delivered
exceptional returns to those brave enough to buy during the dark times.
Now Pier 1 has a new problem - that of Wall Street's bottomless appetite for growth. Good enough is no longer good enough, and investors may be in for a few more difficult quarters before the shareholder base has turned over to a more a conventional retail growth crowd.
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Now Pier 1 has a new problem - that of Wall Street's bottomless appetite for growth. Good enough is no longer good enough, and investors may be in for a few more difficult quarters before the shareholder base has turned over to a more a conventional retail growth crowd.
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Friday, May 25, 2012
Investopedia: Williams Sonoma's Delicate
Doing one thing well in retail is hard enough, but simultaneously
executing on multiple strategies with a high degree of skill is beyond
most management teams. To that end, Williams-Sonoma (NYSE:WSM)
at least merits a great deal of investor respect. Although the upside
in the stock doesn't look so impressive today, the potential to improve
sales growth and/or profitability could lead to more surprises down the
line.
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Tuesday, April 10, 2012
Investopedia: Has Pier 1's Recovery Overshot The Mark?
What management at Pier 1 Imports (NYSE:PIR) has done over the last couple years is nothing short of remarkable. The U.S. retail market preys on weakness and routinely chews up companies that lose touch with their shoppers, never to be seen again. Not only has Pier 1 found a way to survive, but in many respects it's stronger than it has ever been.
Another Strong Quarter to Finish the Fiscal Year
Given that Pier 1 announced top-line results earlier, there weren't too many surprises with this quarter. Revenue rose nearly 12% this quarter, with comp-store growth of over 10%. Not only is that a pretty exceptional result for a large, established company, but it is also better than the 8.9% comp it delivered last year.
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Another Strong Quarter to Finish the Fiscal Year
Given that Pier 1 announced top-line results earlier, there weren't too many surprises with this quarter. Revenue rose nearly 12% this quarter, with comp-store growth of over 10%. Not only is that a pretty exceptional result for a large, established company, but it is also better than the 8.9% comp it delivered last year.
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Tuesday, September 20, 2011
Investopedia: Pier 1 Now A Productivity Story
There is no agreed-upon point where a company is no longer a turnaround story, but there are plenty of anecdotal reasons to believe that Pier 1 (NYSE:PIR) has moved on to become a productivity improvement story. The company has logged several quarters of impressive same-store sales growth, completed a share buyback and begun to talk again about store count expansion and new selling concepts. Still, even if Pier 1 is no longer a true turnaround, investors may well be able to expect quite a bit more fundamental upside as the company couples better merchandising with improved efficiency.
Solid Fiscal Q2 Results
For the company's fiscal second quarter, Pier 1 reported that total sales rose nearly 10% to just under $340 million. On a comparable basis, sales grew 10.8% (against a difficult 11.2% growth comp last year). On a per-square-foot basis, sales grew about 10%. Unfortunately, management did not give a detailed breakdown of traffic and ticket trends other than to say that both were positive.
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Solid Fiscal Q2 Results
For the company's fiscal second quarter, Pier 1 reported that total sales rose nearly 10% to just under $340 million. On a comparable basis, sales grew 10.8% (against a difficult 11.2% growth comp last year). On a per-square-foot basis, sales grew about 10%. Unfortunately, management did not give a detailed breakdown of traffic and ticket trends other than to say that both were positive.
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Tuesday, August 23, 2011
Investopedia: Today Not A Typical Williams-Sonoma Market
Higher-end retailer Williams-Sonoma (NYSE:WSM) has a problem. It's not a merchandise quality problem or an in-store experience problem. It's not a substitution problem; people still cook and use furniture. No, the problem for Williams-Sonoma is more of a consumer disposable income problem - there is nothing in a Williams-Sonoma store that people cannot live without, and as surveys from the National Retail Federation continue to show, people are trying to stretch their income further by shopping more at places like Wal-Mart (NYSE:WMT) and Bed Bath & Beyond (Nasdaq:BBBY) and less at places like Williams-Sonoma.
Cracks Showing in Q2?
Although Williams-Sonoma management decided to issue an earnings press release talking about "strong" earnings in the title, investors can be forgiven if they don't see it as such a strong release. Revenue came in at the lower end of analyst expectations, with reported growth of just a bit more than 5%. While in-store retail growth was pretty anemic (less than 1%), direct-to-consumer sales were up 13% and internet sales (part of DTC) was up nearly 19%.
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Monday, June 20, 2011
Investopedia: Pier 1 Continues To Regain Its Mojo
Not many retailers flirt with utter ruin and make it back again, but Pier 1 (NYSE:PIR) continues to offer a lesson in the merits of a good turnaround story. Instead of going the way of other failed retailers like Linens N Things or Circuit City, Pier 1 returned to its roots, listened to its customers and made changes that went beyond simply cutting prices or offering exceptional sales promotions. While the going will get tougher for this eclectic housewares retailer, investors need not be in a hurry to abandon ship.
A Very Encouraging Fiscal First Quarter
Pier 1 simply delivered the goods this quarter. Revenue rose over 9% and the company delivered comp-store growth of over 10%. Not only does that make it three of the last four quarters where Pier 1 has produced a double-digit comp, but that is also on top of a better-than 14% comp number last year. Granted, Pier 1 did go ever so far down the rabbit hole during its declining years, but these kinds of strong-on-strong quarters amidst a so-so retail environment are encouraging all the same.
The company also continues to deliver solid operating leverage. Gross margin rose nearly three full points, with core merchandise margins up more than one point. Operating expenses were also kept in check, and the company delivered 140% higher operating income as a result and operating margin more than doubled. Better still, it would look as though the company could have still more juice in its margins - Williams-Sonoma (NYSE:WSM) and Bed, Bath and Beyond (Nasdaq:BBBY) certainly are not perfect comps to Pier 1, but both would suggest that Pier 1 has not maxed out its margin improvement possibilities.
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A Very Encouraging Fiscal First Quarter
Pier 1 simply delivered the goods this quarter. Revenue rose over 9% and the company delivered comp-store growth of over 10%. Not only does that make it three of the last four quarters where Pier 1 has produced a double-digit comp, but that is also on top of a better-than 14% comp number last year. Granted, Pier 1 did go ever so far down the rabbit hole during its declining years, but these kinds of strong-on-strong quarters amidst a so-so retail environment are encouraging all the same.
The company also continues to deliver solid operating leverage. Gross margin rose nearly three full points, with core merchandise margins up more than one point. Operating expenses were also kept in check, and the company delivered 140% higher operating income as a result and operating margin more than doubled. Better still, it would look as though the company could have still more juice in its margins - Williams-Sonoma (NYSE:WSM) and Bed, Bath and Beyond (Nasdaq:BBBY) certainly are not perfect comps to Pier 1, but both would suggest that Pier 1 has not maxed out its margin improvement possibilities.
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Monday, December 20, 2010
Pier 1 No Longer A Recovery Story
There really is no handbook for corporate turnarounds or recoveries. With that in mind, there is also no hard-and-fast rule about when a company moves from "recovering" to "recovered". Nevertheless, when it comes to successfully annualizing difficult comps and regaining industry-normal valuations, it seems fair to say that Pier 1 Imports (NYSE:PIR) is no longer an intriguing retail recovery play - it's just a retailer with growing sales and profitability. (For background reading, see Analyzing Retail Stocks.)
A Solid Third Quarter
Like many retailers, Pier 1 reports a little off-center from the regular calendar quarter - an industry convention that may have something to do with capturing post-Thanksgiving Day sales and Christmas sales in two separate quarters. In any event, PIR reported revenue growth of over 8% this period, topping the average estimate, but not quite reaching the high end of the range. Growth was fueled by comp-store growth of more than 10%, down from the year-ago level of 13.7% but an excellent result in what should be the most difficult comp quarter for the company.
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A Solid Third Quarter
Like many retailers, Pier 1 reports a little off-center from the regular calendar quarter - an industry convention that may have something to do with capturing post-Thanksgiving Day sales and Christmas sales in two separate quarters. In any event, PIR reported revenue growth of over 8% this period, topping the average estimate, but not quite reaching the high end of the range. Growth was fueled by comp-store growth of more than 10%, down from the year-ago level of 13.7% but an excellent result in what should be the most difficult comp quarter for the company.
While retailers can slash prices to fuel some top-line growth, that is not what Pier 1 is doing. Instead, the company is taking the shockingly novel approach of stocking what customers actually want to buy. As a result, profitability is improving significantly. Gross margin improved by more than four full points this quarter (to almost 41%), while operating margin increased by more than five points as operating income jumped considerably from last year's low level. At this point, then, Pier 1 is back in line with many of its peers from a gross margin perspective, although there is work yet to be done on the operating line. (For further reading, check out Retailers To Watch This Holiday Season.)
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Thursday, June 10, 2010
GameStop and Pier 1: A Tale of Two Retailers
Admittedly, leading video game retailer GameStop (NYSE:GME) and once-struggling furniture and "dustables" retailer Pier 1 (NYSE:PIR) would seem to have little in common. After all, apart from men who are transitioning from bachelorhood to married life, you would not think they share many customers. While that all may be true, I mention them together for a different reason - namely, the businesses are heading in opposite directions and have very different futures.
GameStop - Here Today, Where Tomorrow?GameStop has certainly enjoyed a fine trajectory. On the way towards becoming the leading independent seller of games (with upwards of 20% market share), the company has boasted a 10-year revenue growth rate in excess of 30% and produces very solid returns on capital. Moreover, the company has a nifty little sub-business within its operations trading used games; while used games represent about one-quarter of the company's sales, they produce about half of the gross profit.
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GameStop - Here Today, Where Tomorrow?GameStop has certainly enjoyed a fine trajectory. On the way towards becoming the leading independent seller of games (with upwards of 20% market share), the company has boasted a 10-year revenue growth rate in excess of 30% and produces very solid returns on capital. Moreover, the company has a nifty little sub-business within its operations trading used games; while used games represent about one-quarter of the company's sales, they produce about half of the gross profit.
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