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Credit Suisse sees Pier 1 Imports heading into unchartered territory

Published 11/08/2017, 01:10 PM
© Reuters.  Credit Suisse sees Pier 1 Imports heading into unchartered territory
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  • Credit Suisse (SIX:CSGN) updates on Pier 1 Imports (PIR -0.5%) after attending a sell-side breakfast with CEO Alasdair James.
  • The CS team expects that the retailer's strategies to boost operating margins and relate to younger consumers will take time.
  • Credit Suisse note: "While PIR's ~25% online penetration is advanced and compelling, this is still uncharted margin territory for retail. In our view the path to improve profitability while balancing sharper pricing, more marketing, a large fixed asset base, and ongoing ecommerce requirements is still unclear."
  • The firm keeps an Underperform rating and price target of $3.50 as it waits out the Pier 1 transformation.
  • Now read: Pier 1: Going Nowhere But Down


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