Tags: Pier | One | Shares | Profit

Pier One Shares Slide as Profit Trails Estimates

Wednesday, 17 Sep 2014 05:31 PM

Shares of Pier One Imports Inc., the owner of about 1,000 home-furnishing stores in North America, sank in late trading Wednesday after second-quarter profit missed analysts’ estimates amid “soft” customer traffic and slimmer margins.

The shares slid as much as 12 percent to $13.75 at 4:37 p.m. in New York. The Fort Worth, Texas-based company's shares had dropped 33 percent this year through the close of regular trading.

Net income in the three months through Aug. 30 fell 49 percent to $9.2 million, or 10 cents a share, the company said Wednesday in a statement. Analysts estimated profit of 13 cents, on average. Sales rose 5.8 percent to $418.6 million, trailing analysts’ $426.2 million projection.

“We were challenged by soft store traffic and, more significantly, by declines in our merchandise margins,” Chief Executive Officer Alex Smith said in the statement.

Gross profit was 38.9 percent of sales in the second quarter, down from 40.8 percent a year earlier, the company said.

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Shares of Pier One Imports Inc., the owner of about 1,000 home-furnishing stores in North America, sank in late trading Wednesday after second-quarter profit missed analysts' estimates amid "soft" customer traffic and slimmer margins.
Pier, One, Shares, Profit
161
2014-31-17
Wednesday, 17 Sep 2014 05:31 PM
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