Pier 1 Profit Falls 11% on Higher Costs

Pier 1 Imports Inc., the largest U.S. retailer of imported home furnishings and accessories, said fourth-quarter earnings fell 11% as higher employee and legal costs hurt margins.

Net income dropped to $48.3 million, or 53 cents a share, from $54 million, or 57 cents, a year earlier, the Fort Worth-based company said. Sales rose 6.6% to $555.3 million as the company benefited from the opening of 120 stores.

Pier 1’s profit margins narrowed as costs increased because of a lawsuit settlement and higher insurance expenses.

Shares of Pier 1 dropped 68 cents to $23.02 on the NYSE.