UPDATE: Pier 1 Posts Lower Q1 Profit, Cuts Forecast

Pier 1 Imports

reported a drop in its fiscal first-quarter profit and lowered its forecast. Pier 1's same-store sales climbed 6.3% in the quarter, while gross margin shrank to 40% from 42.4%. For the year, Pier 1 lowered its earnings outlook by $0.02 per share to a range of $1.14 per share to $1.22 per share. Pier 1's quarterly profit declined to $15.1 million, or $0.16 per share, from a year-ago profit of $20.3 million, or $0.19 per share. Its net sales gained 6.1% to $419.1 million. However, analysts were expecting earnings of $0.20 per share on sales of $422.8 million. Its EBITDA slipped to $36.4 million from $42.3 million, while operating income declined to $25.8 million versus $33.2 million. Alex W. Smith, President and Chief Executive Officer said, “We achieved company comparable sales growth of 6.3% in the first quarter, reflecting strong traffic to the Pier 1 Imports brand.” Pier 1'sinput costs gained around 11% to $251.3 million. Pier 1 shares rose 0.44% to close at $18.26 yesterday.