NEW YORK (TheStreet) -- Shares of Pier 1 Imports (PIR) - Get Report are tumbling 8.09% to $5 in pre-market trading on Thursday after the company reported weaker-than-expected results for the 2017 fiscal first quarter.
After yesterday's market close, the Fort Worth, TX-based home furnishings retailer posted a loss of 7 cents per share, while analysts were expecting a loss of 5 cents per share.
Revenue dropped 4.2% to $418.4 million year-over-year and fell short of Wall Street's projections of $420.1 million.
On a constant currency basis, revenue slumped 3.9%.
Same-store sales declined 2.5% and 2.2% on a constant currency basis. E-commerce made up 19% of total net sales, compared to 17% for the same period last year.
Deutsche Bank lowered its price target on the stock to $5 from $5.50 and maintained its "sell" rating after the results.
"We continue to believe that with significantly more competitive forces and a continued promotional home goods environment that gross margins remain under pressure," the firm wrote in an analyst note.
Additionally, Deutsche Bank said the second quarter is "less seasonally heavy," which helps reduce the risk of seasonal markdowns.
"But as other competitors continue to take share, we believe this keeps PIR playing catch up - resulting in below plan sales and above plan inventory...leading to further necessary markdowns," the firm noted.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.
But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PIR