Pier 1 Imports' Stock Tumbles After Lowered Profit, Sales Outlook

Shares of Pier 1 Imports Inc. plunged 24% in after-hours trade, after the specialty home furnishings retailer slashed its profit and sales outlook for fiscal 2015 and said its chief financial officer was retiring. The company cut its earnings-per-share outlook for the fiscal year ending in February to a range of 80 cents to 83 cents from a previous estimate of 95 cents to $1.05, citing softer-than-expected sales in January and February. Analysts surveyed by FactSet were expecting EPS of $1. Same-store sales growth is now expected to be about 5%, compared with a previous growth outlook in the mid-to-high-single digit percentage range. "Following a strong holiday period, we registered respectable company comparable sales growth of 5.7% in January -- but the results were well below our forecast, which had overestimated the recapture of lost sales from last year's storms. This is also causing us to take a more cautious view of sales for February," said Chief Executive Alex Smith. The company also said Chief Financial Officer Charles Turner has retired, and will be replaced on an interim basis by Executive Vice President Laura Coffey. The stock had run up 27% over the past three months through Tuesday's close, while the S&P 500 had gained 1.4%.

Copyright © 2015 MarketWatch, Inc.