Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of home furnishings retailer Pier 1 Imports Inc (NYSE:PIR) sank 10% today after its quarterly results and outlook disappointed Wall Street.

So what: The stock has slumped over the past year on lackluster growth, and today's Q1 results -- EPS of $0.16 missed the consensus by $0.04 on a revenue increase of just 6% -- coupled with downbeat guidance only reinforce that worrisome trend. While same-store sales rose 6.3% on higher traffic, gross margin narrowed 240 basis points to 40%, suggesting Pier 1's competitive position isn't strong enough to combat the highly intense pricing environment lately. 

Now what: Management now sees full-year EPS in the range of $1.14 to $1.22, down $0.02 from its previous view. "[T]he retail environment remains highly promotional and is pressuring gross profit in the near-term," said president and CEO Alex Smith. "As a result, we are adjusting our full-year earnings forecast accordingly."

When you couple that severe short-term pressure with Pier 1's still-questionable competitive moat, I'd wait for a much wider margin of safety before buying into management's long-term turnaround plans.