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Wednesday, October 04, 2006

Pier 1 Shareholders to CEO - Don’t Let the Door Hit You on the Way Out

By William Trent, CFA of Stock Market Beat

It must be a real downer for a CEO to see the shares rise when he leaves. CNNMoney reports that is what happened when Pier 1’s (PIR) CEO announced his departure. Pier 1 shares jump 5 percent as Chairman leaves - Oct. 2, 2006:

Shares of Pier 1 Imports Inc. rose more than 5 percent Monday after the home decor retailer, struggling with falling sales, said Chairman and Chief Executive Marvin Girouard will retire early next year.Analysts said the change was a welcome step as the Fort Worth, Texas-based company works to reverse six straight quarterly losses and seven straight declines in sales at stores open at least a year, or same-store sales.

“Given the company’s deteriorating performance, despite several attempts to improve advertising and merchandising, we had noted our belief that a change in management could be needed,” Lehman Brothers analyst Alan Rifkin said in a research note.

As far as we could tell, none of the analysts explained how whoever is brought in to replace Girouard will have better luck selling wicker.

The author may hold a position in the securities discussed. A current list of the author's holdings is available here.

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