Texas based home furnishing maker Pier 1 Imports Inc announced second quarter sales and earnings for the period ending August 27, 2005 will be lower than earlier guidance. Comparable store sales in August are trending below projections and are expected to decline in a range of 13 percent to 15 percent. As a result, second quarter comparable store sales are projected to decline approximately 8 percent to 9 percent from the year-ago period. In addition, heavy promotional activity and markdowns through August will result in the Company''s loss per share for the second quarter to be in a projected range of ($0.12) to ($0.14).

Marvin J. Girouard, Chairman and Chief Executive Officer, commented, "Customer traffic in August continued to decline and as a result, they aggressively managed inventories through promotional discounts and markdowns in order to facilitate new product arrivals. In early September, we will mail Pier 1''s first national catalog to customers followed by another nationwide catalog circulation in November for the all-important holiday period. Although they continue to be disappointed with their recent results, they are clearly focused on store execution as begin the fall and holiday selling seasons, along with improvements and changes to their merchandising and marketing strategies scheduled for the second half of fiscal year."

The Company will report second quarter sales on September 1, 2005 and second quarter results on September 15, 2005.

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