Pier 1 Imports Shares Plummet 32% As 2015 Outlook Slashed, CFO Turner Retires

(RTTNews) - Shares of Pier 1 Imports, Inc (PIR) plummeted more than 32 percent in extended trading on Tuesday after the home furnishings retailer slashed its earnings guidance for 2015, citing weak sales in January and February as well as higher than forecast expenses.

"I am extremely disappointed that we will not achieve our prior financial guidance. 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," President and CEO Alex Smith said.

The Fort Worth, Texas-based company slashed its earnings guidance to a range of $0.80 to $0.83 per share for fiscal 2015 from the prior outlook in the range of $0.95 to $1.05 per share.

The company also now projects comparable sales growth, which includes e-Commerce, of about 5 percent, compared to the previous forecast for a mid- to high-single digits growth.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.00 per share on revenues growth of 6.1 percent to $1.88 billion for the year. Analysts' estimates typically exclude special items.

The outlook reduction reflects softer-than-expected sales in January and February, as well as higher-than-forecast expenses, primarily related to incremental supply chain costs.

"From an earnings perspective, our revised outlook reflects the sales shortfall, as well as unplanned supply chain expenses, some of which will be ongoing through the first quarter of fiscal 2016. These primarily include incremental distribution center costs that affect our gross profit," Smith added.

The company noted that it will provide financial outlook for fiscal 2016 along with the financial results for the fourth quarter and full-year 2015, which is scheduled to be released after the market closes on April 8.

Separately, the company also announced that Senior Executive Vice President and Chief Financial Officer Charles Turner has retired and Laura Coffey has been named executive vice president and interim CFO, effective immediately. The company has commenced a search for a permanent CFO.

Coffey, a 17-year veteran of the company, joined Pier 1 Imports in 1997 and has held various positions. Prior to Pier 1 Imports, Coffey held positions with Alcon Laboratories and KPMG, LLP.

PIR closed Tuesday's regular trading session at $16.97, up $0.20 or 1.19% on a volume of 2.08 million shares. However, the stock plummeted $5.46 or 32.17% in after-hours trading.