Pier 1 sacks CFO after faulty forecast

Pier 1 Imports Inc. has retracted its profit guidance for the fourth quarter and replaced its chief financial officer after what the company's CEO said was a miscalculated financial forecast.

CEO Alex W. Smith said the retailer’s same store sales growth in January was 5.7%, well below a forecast that "overestimated the recapture of lost sales from last year’s storms.”

He said the company was also more cautious about February sales and had revised its earnings guidance as well. “The failure to adequately forecast the revenue and expenses in our business is a financial issue which has been aggressively addressed,” Smith said.

Pier 1 said it now expects to earn from 80 to 83 cents a share for the fiscal year to end Feb. 28, down from a previous projection of 95 cents to $1.05, the company said.The company plans to release its results on April 8.

The company also named Laura A. Coffey as interim chief financial officer, and said it has launched a search for a permanent replacement. Coffey, 48, has been with Pier 1 since 1997 and has held various positions. Most recently, she has served as SVP of planning, where she has overseen implementation of the company’s new website and omni-channel capabilities.

“We are delighted and fortunate to have Laura serve as interim CFO,” Smith said. “She is a strong and experienced executive who brings both financial and operational expertise to this role. Having been with Pier 1 Imports for over 17 years, Laura has a keen understanding of our business, culture and long-term vision.”