Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
The stock market largely marked time on Thursday, waiting for tomorrow's important U.S. employment report for the latest signs of whether the economy is still strong enough to warrant continued reductions in central-bank intervention activity. Yet, even though the Dow and S&P 500 were little changed today, shares of Pier 1 Imports , Qunar Cayman Islands , and Bed Bath & Beyond fell sharply from bad news that hit those individual companies hard.
Pier 1 fell 12% after the home-furnishings retailer posted same-store sales growth of just 1.3% for December, leaving CEO Alex Smith "extremely disappointed" in light of what had been a record year for the weekend after Thanksgiving. Pier 1 blamed the weather for the declines, citing strong execution and promotional pricing behavior that nevertheless was unable to offset the downside pressure from cold. Pier 1, therefore, cut guidance for the fourth quarter and the full fiscal year, expecting flat comps for the fourth quarter, and quarterly earnings per share off more than 20% from its previously announced range.
Qunar Cayman Islands dropped 14%, giving back all of its gains from the past two trading sessions. Qunar is a big player in the online travel industry in China and, with backing from Baidu.com, the company has been competing fiercely against Ctrip.com International and its rival travel portal. Earlier in the week, Qunar had soared as it experienced better growth among mobile users than Ctrip; but with both Ctrip and Qunar now expecting to move into new areas of the travel business, weaker profit margins could hurt both players. Ctrip fell 10%.
Bed Bath & Beyond declined 12% after falling prey to many of the same problems as Pier 1, reporting quarterly earnings last night that rose just 2% on a 1.3% rise in same-store sales. With the home-goods retailer cutting its profit forecast for the full fiscal year by 2% to 3%, it's readily apparent that Bed Bath & Beyond has seen increased competition from online retailers, especially given the relatively poor performance from its bricks-and-mortar peers in the space. Retailers like Bed Bath & Beyond will have to keep working on their own online strategies in order to compete against other players in the space.
Another way to profit from China
If Chinese travel portals aren't your best bet right now, why not look at the Chinese auto market? As Chinese consumers grow richer, savvy investors can take advantage of this once-in-a-lifetime opportunity with the help from this brand-new Motley Fool report that identifies two automakers to buy for a surging Chinese market. It's completely free -- just click here to gain access.
The article Why Pier 1 Imports, Qunar Cayman Islands, and Bed Bath & Beyond Tumbled Today originally appeared on Fool.com.Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Baidu, Bed Bath & Beyond, and Ctrip.com International. The Motley Fool owns shares of Baidu. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.