Pier 1’s shares fall sharply on lower earnings

Posted Thursday, Sep. 19, 2013  comments  Print Reprints

Have more to add? News tip? Tell us

Pier 1 Imports shares dropped nearly 14 percent Thursday after the company missed its second-quarter earnings estimates and lowered its full-year profit guidance.

The Fort Worth retailer earned $17.8 million, or 17 cents per share, for the quarter ending Aug. 31, compared with $26.2 million, or 24 cents per share, for the same period last year. Wall Street’s consensus forecast was 21 cents per share.

Pier 1 cut its outlook for its current fiscal year to between $1.23 and $1.29 a share, or 5 to 10 percent growth over last year. That was down from its prior guidance of $1.27 to $1.32.

Pier 1’s shares (ticker: PIR) fell $3.27, or 13.9 percent, to $20.33 on more than 10 times its usual trading volume on the New York Stock Exchange.

CEO Alex Smith said the company’s second-quarter marketing initiatives “did not include appropriate messaging around clearance and promotional activity in our stores, or customer acquisition generally, which contributed to lower-than-expected store traffic. We should also have done a better job of flowing new product to the stores and reflecting those items in the floor set.”

The company continues to enjoy stronger online sales, which reached a record 5 percent of total sales in August, Smith said.

Sales at stores open at least a year rose 3 percent, while the profit margin slipped to 40.8 percent from 41.2 percent. Selling, general and administrative expense rose to 31 percent of sales, compared with 30.5 percent a year ago.

Total sales for the quarter rose to $395.6 million from $367.6 million.

Scott Nishimura, 817-390-7808 Twitter: @JScottNishimura

Looking for comments?

We welcome your comments on this story, but please be civil. Do not use profanity, hate speech, threats, personal abuse or any device to draw undue attention. Our policy requires those wishing to post here to use their real identity.

Our commenting policy | Facebook commenting FAQ | Why Facebook?