Pier 1 Import's struggles could worsen, said CNBC contributor Herb Greenberg on Wednesday.

The stock started getting hammered after the bell Tuesday after news Pier 1 slashed its full-year forecast.

Greenberg, who initiated coverage on the home décor retailer for GVB Financial Research just two days ago, said the situation shouldn't be a surprise to investors.

"It's like they're (executives) making this up as they are going along because they kept changing the story, changing guidance, changing definitions—none of that is what you want to see," said Greenberg on CNBC's "Halftime Report."

Pier 1 also announced the company's long-time chief financial officer Charles Turner has retired.

"The CFO—he's set up as the fall guy," Greenberg said.