Pier 1 Imports, Inc. Announces 2013 Fourth Quarter and Fiscal Year Sales and Fourth Quarter Expected Earnings Per Share

  Pier 1 Imports, Inc. Announces 2013 Fourth Quarter and Fiscal Year Sales and
  Fourth Quarter Expected Earnings Per Share

            *Fourth Quarter Comparable Store Sales Increase of 7.9%
  *Fiscal Year Comparable Store Sales Increase of 7.5%

Business Wire

FORT WORTH, Texas -- March 7, 2013

Pier 1 Imports, Inc. (NYSE:PIR) today reported sales results for the 14-week
fourth quarter and 53-week fiscal year ended March 2, 2013.

Fourth Quarter Highlights

  *Comparable store sales increased 7.9% on top of last year’s 10.3% gain;
    three-year cumulative comparable store sales increased 27.1%
  *Total sales increased 15.7% to $552 million for the 14-week period
  *Gross profit expected to be approximately 46.2% of sales versus 45.5% of
    sales last year
  *Earnings per share expected to be approximately $0.57-$0.58 (GAAP) and
    $0.59-$0.60 (non-GAAP) on a 14-week basis versus $1.04 (GAAP) and $0.48
    (non-GAAP) in the fourth quarter of last year (see reconciliation below of
    expected earnings per share to expected adjusted non-GAAP earnings per
    share)

For the fourth quarter ended March 2, 2013, comparable store sales on a
13-week basis increased 7.9% versus an increase of 10.3% for the fourth
quarter ended February 25, 2012. Total sales for the 14-week fourth quarter
improved 15.7% to $552 million  compared to $477 million in the 13-week fourth
quarter of last year. Strong comparable store sales results for the quarter
were primarily attributable to increases in store traffic and higher average
ticket. Fourth quarter merchandise margins at the store level are expected to
be essentially flat year-over-year. Gross profit is expected to be
approximately 46.2% of sales for the fourth quarter versus 45.5% of sales for
the fourth quarter of last year.

For the fiscal year ended March 2, 2013, total sales for the 53-week period
increased 11.2% to $1.705 billion from $1.534 billion last fiscal year.
Comparable store sales for fiscal 2013 on a 52-week basis increased 7.5%
versus an increase of 9.5% last fiscal year.

Earnings per share for the fourth quarter of fiscal 2013 are expected to be
approximately $0.57-$0.58 (GAAP) and $0.59-$0.60 (non-GAAP) on a 14-week basis
compared to $1.04 (GAAP) and $0.48 (non-GAAP) in the fourth quarter of last
year on a 13-week basis (see reconciliation below under Financial Disclosure
Advisory).

Alex W. Smith, President and Chief Executive Officer, commented, “Our 2013
fiscal year ended strongly, with another quarter of significant growth in
sales and earnings. Our talented and dedicated associates continue to do an
outstanding job of executing our robust operating and growth strategies.”

Smith continued, “We are confident that fiscal 2014 will be another terrific
year as we continue our evolution into a true multi-channel retailer,
exploiting the growth potential in our two mutually supportive and
interdependent businesses – our wonderful Pier 1 Imports stores and our new,
two quarters-old e-Commerce business.”

Fourth Quarter and Fiscal Year Results and Conference Call Information

The Company will announce fiscal 2013 fourth quarter and fiscal year financial
results prior to market open on Thursday, April 11, 2013 and will host a
conference call later that morning at 10:00 a.m. Central Time to discuss the
results. Investors will be able to connect to the call through the Company’s
website at www.pier1.com. The conference call can be accessed by linking
through to the “Investor Relations” page to the “Events” page, or you can
listen to the conference call by dialing 1-800-498-7872, or if international,
1-706-643-0435. The conference ID number is 19369600.

Financial Disclosure Advisory

This release references non-GAAP information for the 14-week fourth quarter
ended March 2, 2013 and the 13-week fourth quarter ended February 25, 2012 as
shown in the table below.

                                                         
                                            14-Weeks Ended   13-Weeks Ended
                                            March 2, 2013    February 25, 2012
                                                             
Expected Diluted Earnings per Share         $0.57  - $0.58   $1.04
(GAAP)
Non-Recurring Tax Benefits Primarily
Resulting from Change in the Tax                     -       (0.56       )
Valuation Allowance
Difference of Income Tax Provision at
Estimated 35.6% Annual Effective Tax               0.02    -           
Rate
Expected Adjusted Diluted Earnings per      $0.59  - $0.60   $0.48       
Share (non-GAAP)
                                                             

The Company reports its financial results in accordance with U.S. generally
accepted accounting principles (GAAP). The Company believes that the non-GAAP
financial measure included in this press release allows management and
investors to understand and compare the Company’s earnings per share results
in a more consistent manner for the 14-week fourth quarter ended March 2, 2013
and the 13-week fourth quarter ended February 25, 2012. The non-GAAP measure
should be considered supplemental and not a substitute for the Company’s
earnings per share results that will be recorded in accordance with GAAP for
the periods presented.

Management’s expectations and assumptions regarding 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 included in this press release. Any
forward-looking projections or statements should be considered in conjunction
with the cautionary statements and risks contained in the Company’s Annual
Report on Form 10-K. Refer to the Company’s most recent SEC filings for any
updates concerning these and other risks and uncertainties that may affect the
Company’s operations and performance. 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 the original global importer of imported decorative
home furnishings and gifts. Information about the Company is available on
www.pier1.com.

Contact:

Pier 1 Imports, Inc.
Cary Turner, 817-252-8400
 
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