Pier 1 Imports says same-store sales rose 9.9% in September

Merchandise margins also improve

Larry Thomas -- Furniture Today, October 13, 2009

FORT WORTH, Texas — Retailer Pier 1 Imports said same-store sales rose 9.9% in September as merchandise margins and in-store traffic improved.

The September uptick, which reversed a year-long trend of declining same-store sales, appears to have continued into October and should last through the holiday sales season, said Alex Smith, president and CEO.

"As we head into November and December, we feel confident about our inventory level and our ability to manage it with significantly less markdowns that last year," he said. "We are excited about our fall and holiday marketing campaigns and expect that they will further build on our improvements in traffic."

Pier 1 stock, which reached a 52-week high of $4.55 on Monday, has more than doubled in the past three months. If that trend continues, the company said it will exercise its right to terminate the conversion rights of certain notes that can be converted into common stock.

The company said about $15 million of the original $61.2 million in notes have already been converted or submitted for conversion into approximately 6 million shares.

The retailer's fiscal third quarter ends Nov. 28 and third-quarter earnings will be announced Dec. 16.