The Ratings Game: Pier 1 shares skyrocket on signs of turnaround

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Changes at Pier 1 along with easy comparisons are credited for third-quarter results

Pier 1 Imports Inc.’s third-quarter results have sent shares skyrocketing to their biggest price gain ever and prompted price target increases among analysts who believe the company is taking a better approach to its merchandise and promotions.

Pier 1 PIR, +32.25% shares closed up $2.09, or 32.3%, on Thursday.

“We were most impressed by the sharp rebound in merchandise margin driven by lapping distribution issues, cleaner inventories and more targeted promotions, although some of the strength was given back in the form of more prevalent free shipping and SG&A [selling, general and administrative expsenses] leverage, including marketing,” wrote Wedbush analysts in a note published Thursday.

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