How does Pier 1(one) CEO feel about his company after failing to meet their quota?
FORT WORTH – Pier 1 Imports Inc. chief executive officer Alex Smith has spent 2 ½ years putting the house in order. Short-term liquidity issues have been resolved, and tough downsizing moves shaved $190 million from annual expenses. Shares have recovered from a low of 10 cents to more than $2, lifting the danger of being delisted by the New York Stock Exchange. Now he’s challenged with turning sales around before the all-important holiday shopping season. Sales have declined an average of 9 percent over each of the last three years. The recession has hampered Smith’s attempt to turn Pier 1 around, but he still contends the chain can be profitable in two years. While analysts give him credit for making progress, most still question Pier 1’s long-term prospects. Pier 1 has been negotiating with its landlords to lower rent costs by closing stories and renegotiating rents. So far it has achieved $9 million in rental savings for its fiscal year ending in February 2010. The company closed 11
