Pier 1 Imports drops after again cutting outlook for the year, while longtime CFO retires

Economic Indicators Associated Press

Shares of Pier 1 Imports tumbled in aftermarket trading Tuesday after the home decor retailer cut its forecast for the fiscal year ending in February.

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Pier 1 Imports Inc. also said Cary Turner, the company's CFO since 1999, has retired. Laura Coffey, a company executive, will be Pier 1's interim chief financial officer while it looks for a permanent replacement.

The company's shares dropped $5.27, or 31 percent, to $11.70 in extended trading.

Pier 1 said its holiday sales were strong, but sales in January were below its forecast and it is cautious for February. The company said it overestimated a January sales bump after business lost during last year's winter storms.

The Fort Worth, Texas-based company also said unexpected supply chain costs are hurting its profit.

Pier 1 now expects to report an annual profit of 80 to 83 cents per share for the year ending on Feb. 28 and said sales at stores open at least a year, a key retail metric, will rise 5 percent.

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In September, it cut its guidance to net income of 95 cents to $1.05 per share with sales at stores open at least a year rising by a mid- to high-single-digit percentage. Pier 1 had also cut its outlook in June.

FactSet said analysts were projecting earnings of $1 per share.

Pier 1 is scheduled to report its quarterly results on April 8.

Shares of Pier 1 Imports Inc. had closed at $16.97 Tuesday, down 9.6 percent over the past 12 months.