Pier 1 Imports Slides on Disappointing Earnings

New York (TheStreet) -- Pier 1 Imports (PIR) shares slid more than 7% in premarket trading Thursday after the home furnishings and decor company posted disappointing earnings that it attributed to lower-than-expected store traffic in the quarter.

Pier 1 reported net income dropped 32% in the fiscal second quarter to $17.8 million, or 17 cents a share. Adjusted net income totaled $20.7 million, or 19 cents a share. The Fort Worth, Texas-based company's second quarter ended on Aug. 31.

Wall Street was looking for Pier 1 to post earnings of 21 cents a share in the quarter.

Shares were falling 7.4% to $21.85 before the market opened.

Sales improved in the quarter, up 7.6% to $395.6 million, even if they did come in shy of analysts' forecasts of $405 million. Comparable-store sales increased 3.5% during the second quarter, but were down from last year's comparable-store sales gain of 6.7%.

"For each of the last 15 quarters we've prided ourselves on our ability to deliver consistent short-term results while building out our '1 Pier 1' omni-channel strategy," Alex W. Smith, Pier I Imports' president and CEO, said in an earnings statement. "During the second quarter, the efforts focused around our short- and long-term goals fell slightly out of balance. In particular, our 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."

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