Higher gas and food prices did not have a significant impact on the sales of major retailers in May, although Pier 1 Imports (NYSE:PIR) continues to lower guidance, thanks to disappointing results. The company said that same-store sales plunged 7.6% in May as a result of poor holiday (Mothers' Day and Memorial Day) promotions. Pier 1 had expected a decline of 4% to 6% for stores open at least a year and has forecasted a 7% to 9% drop for June.
The news doesn't get better for the store that stocks more wicker furniture than most people would know what to do with; Pier 1 also cut its first-quarter outlook from its previous guidance of $0.14 to $0.17 per share to $0.12 to $0.14. Pier 1 shares are down 4% on the negative news and have dropped nearly 30% since November.
It appears that Pier 1 is being roughed up by a list of competitors, including Williams-Sonoma (NYSE:WSM), Bed Bath & Beyond (NASDAQ:BBBY), and Cost Plus (NASDAQ:CPWM). Williams-Sonoma (see its Home Run) and Bed Bath & Beyond (see Beyond Belief) have both come off stronger-than-expected results and have really taken control of the home products/furnishings sector.
Despite improving economic conditions, including better job growth, Pier 1 continues to slide as if it forgot to put down a bath mat. With the company lowering its expectations just about every time it looks in the mirror, investors can't be expected to jump aboard a steamless train.
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Fool contributor Phil Wohl spent more than 12 years on Wall Street and now concentrates his writing on more fictional characters. He has no stake in any firm mentioned above.
