As we are now less than a week away from Christmas, retail shopping has picked up, as well as the e-commerce business. Overall the broad markets have had a relatively weak year, and it has been reflected in quite a few companies. At this time of the year we turn our heads to retail, to look for a “Santa Clause Rally,” but this year old Saint Nick and his rally might not come to town.
24/7 Wall Street has picked out a few retailers that have whiffed this season and contributed to the sliding broad markets. We explore whether a company had earnings that fell short, a failed merger or missed guidance that were contributing factors to their dismal performance. We also have included a recent trading history, 52-week range and consensus analyst price target.
For a broader perspective on retail, 24/7 Wall St. also explored whether Super Saturday could save the holiday shopping season.
Pier 1 Imports
Pier 1 Imports Inc. (NYSE: PIR) collapsed when it reported earnings on Thursday. The company had $0.13 in earnings per share (EPS) on $472.5 million in revenue. That compared to consensus estimates from Thomson Reuters that called for $0.12 in EPS on revenue of $494.6 million. In terms of guidance, the company expects EPS in the range of $0.42 to $0.46, below the previous guidance of $0.56 to $0.64, for the fiscal full year. Pier 1 also expects comparable sales to be flat for the year. The consensus estimates call for EPS of $0.58 and $1.90 billion in revenue for the fiscal full year.
Shares of Pier 1 were trading at $4.80 on Friday’s close, with a consensus analyst price target of $6.53 and a 52-week trading range of $4.55 to $17.52. Over the past quarter this stock dropped about 50%, and year to date it is down 68%.
Staples and Office Depot
This month, the Federal Trade Commission (FTC) sued to block the Staples Inc. (NASDAQ: SPLS) acquisition of Office Depot Inc. (NASDAQ: ODP). Just like a house of cards, shares of both companies crumbled under this weight. If shareholders are really bold, they might hold on and wait for Staples and Office Depot to contest the FTC lawsuit, but the future does not look bright for this pair.
Staples stock closed Friday at $9.42. It has a consensus price target of $13.92 and a 52-week range of $9.03 to $19.40. Over the course of this quarter, shares dropped 29% and even hit a 52-week low. Year to date, shares are down about 46%.
Office Depot closed at $5.41 on Friday. The consensus price target is $8.89, and the 52-week range is $5.24 to $9.77. The stock hit a 52-week low following the FTC release. Shares were down 26% on the quarter. Year to date, they are down 35%.