Shares of the specialty home retailer Pier 1 Imports Inc (NYSE:PIR) took a dive today after the company announced a three-year plan that will address weaknesses in the company’s business.

The company’s recent fourth quarter financial earnings, which released on Wednesday, were disappointing and reported net sales went down by 3.1%.

Total net sales for the fiscal year also went down by 1.6%. The company’s operating income for the fourth quarter fell to $27.9 million, compared to the $44.8 million for the previous year.

Pier 1’s CEO and President, Alasdair James, said that these earnings “underscores the urgent need for change.”

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The new plan, named ‘Pier 1 2021: A New Day,’ will involve attempts to drive sales growth with new marketing strategies, create initiatives that focus on pricing, promotions and sourcing of materials, and reduce inventory to better Pier 1’s operating statistics.

The company hopes that this new plan will also offer better financial results for the fiscal years of 2020 and 2021 and estimates that sustainable net sales will grow by four to six percent.

Pier 1 has also predicted that financial results for fiscal 2019 will have a significant net loss of approximately $15 million USD, as the company will be using this time to “[invest] in the tools and resources needed to execute against [the] plan.”

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James has said, regarding ‘Pier 1 2021,’ it is “expected to drive sales growth and profitability in fiscal 2020 and 2021 and [is] necessary to help [the company] return the business to a sustainable growth trajectory.”

Despite the company’s optimism, shares of Pier 1 dove approximately 20% on Thursday, hovering near $2.75.

After closing at $3.46 on Wednesday, this is a significant loss to the company.

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