Pier 1 Imports, Inc. Reports December Sales and Lowers Fourth Quarter

    Business Editors

    FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 6, 2005--Pier 1 Imports, Inc. (NYSE:PIR) reported today that sales for the five-week period ended January 1, 2005 aggregated $289,628,000, a decline of 3.5% from $300,152,000 last year, and comparable store sales declined 8.8%. Year-to-date sales for the ten-month period amounted to $1,661,654,000, up 3.0% from $1,613,139,000 last year, and comparable store sales declined 4.7%.
    Marvin J. Girouard, Chairman and Chief Executive Officer, commented, "December's comparable store sales trended in the negative mid-single digit range for most of the month, with the exception of softer sales during Christmas week. We ended the month with traffic and average ticket each down 5% and customer conversions slightly up. Sales and margins in December were negatively affected by an aggressive promotional environment and planned SKU reductions resulting in leaner than desired inventories. Also, a lack of TV advertising continued to contribute to weak sales. Based on December's results, fourth quarter comparable store sales are now projected to be in a range of negative high-single digits with earnings in a range of $0.31 to $0.38 per diluted share."
    "Looking ahead, we expect our new spring and Easter merchandise to begin arriving in stores next week. Additionally, Pier 1's new creative marketing campaign will launch in mid-March."
    Any forward-looking projections or statements made in this press release should be considered in conjunction with the cautionary statements contained in the Company's most recently filed Form 10-Q for fiscal year 2005. Management's expectations and assumptions regarding planned store openings, financing of Company obligations from operations, results from its new marketing, merchandising and store operations strategies, and other future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements.

    Risks and uncertainties that may affect Company operations and performance include, among others, the effects of terrorist attacks or other acts of war, conflicts or war involving the United States or its allies or trading partners, labor strikes, weather conditions that may affect sales, volatility of fuel and utility costs, the general strength of the economy and levels of consumer spending, consumer confidence, the availability of new sites for expansion along with sufficient labor to facilitate growth, the strength of new home construction and sales of existing homes, the availability and proper functioning of technology and communications systems supporting the Company's key business processes, the ability of the Company to import merchandise from foreign countries without significantly restrictive tariffs, duties or quotas and the ability of the Company to source, ship and deliver items from foreign countries to its U.S. distribution centers at reasonable prices and rates and in a timely fashion. The Company assumes no obligation to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied will not be realized.

    Pier 1 Imports, Inc. is North America's largest specialty retailer of imported decorative home furnishings and gifts with Pier 1 Imports(R) stores in 50 states, Puerto Rico, Canada, and Mexico; The Pier(R) stores primarily in the United Kingdom; Pier 1 kids(R) and Cargokids(R) stores.

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CONTACT: Pier 1 Imports, Inc., Fort Worth Cary Turner, 817-252-8400

KEYWORD: TEXAS INDUSTRY KEYWORD: BANKING CONSUMER/HOUSEHOLD RETAIL EARNINGS SOURCE: Pier 1 Imports, Inc.

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