Pier 1 Imports Reports Increased Store Traffic

Pier 1 Imports Reports Increased Store Traffic
October 14, 2009

Fort Worth, Texas-based Pier 1 Imports Inc. announced that its comparable-store sales for September increased 9.9 percent, versus a decline of 11.7 percent in September last year. “The improvement in our business that we spoke about on our second-quarter conference call has continued through the month of September and into October," said Alex Smith, president and CEO of Pier 1 Imports. "Since the end of the second quarter, we have seen increases in traffic and our conversion rates, which have resulted in positive comparable-store sales. Although it is still early in the quarter, we have seen nothing to indicate that recent sales and traffic trends will not continue." Third-quarter merchandise margins continue to improve on a year-over-year basis as a result of significantly reduced markdown and clearance activity and strong input margins. Inventory levels are expected to peak at the end of the quarter at approximately $350 million. “As we head into November and December, we feel confident about our inventory level and our ability to manage it with significantly less markdowns than last year, resulting in continued improvements to merchandise margins on a year-over-year basis," Smith said. "We are excited about our fall and holiday marketing campaigns and expect that they will further build on our improvements in traffic."