Shares of Pier 1 Imports ran aground Thursday, falling to their lowest level since 2011 after the home-decor retailer cut its profit forecast for the year.
The company’s earnings last quarter fell 49 percent to $9.2 million. One reason for the drop is that Pier 1 held onto less of its revenue as profit, versus a year earlier. The lower margins were a result of increased e-commerce sales, which include costs to deliver products, among other factors.
The company cut its forecast for this fiscal year’s earnings per share to a range of 95 cents to $1.05. That’s down from a prior range of $1.14 to $1.22. Pier 1’s earnings growth has slowed as the company has invested more in its e-commerce business. But e-commerce has grown faster than Pier 1 was expecting and now makes up nearly 10 percent of total sales.
Total returns through Sept. 18
Source: FactSetAssociated Press
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