Pier 1 Imports, Inc. Updates Fourth Quarter and Full Year Fiscal 2014 Sales and Earnings Per Share Guidance

  Pier 1 Imports, Inc. Updates Fourth Quarter and Full Year Fiscal 2014 Sales
  and Earnings Per Share Guidance

Business Wire

FORT WORTH, Texas -- February 28, 2014

Pier 1 Imports, Inc. (NYSE:PIR) today updated expectations for its fourth
quarter and full year ending March 1, 2014. The company will report full
financial results for fiscal 2014 and hold a conference call as scheduled on
April 10, 2014.

Alex W. Smith, President and Chief Executive Officer, stated, “Since our
holiday sales update on January 9^th we have continued to experience
significant disruption from adverse weather in many of our major markets. This
has resulted in considerably softer store traffic, as well as some temporary
store closings, which further pressured fourth quarter sales and merchandise
margin. Our fourth quarter results are frustrating and disappointing. However,
we know the weather will eventually end and we can get back to more typical
business trends. Our ‘1 Pier 1’ strategy – which lets our customer shop
however she chooses – continues to gain traction, and although store traffic
was tough in the quarter, Pier1.com once again outperformed our expectations.
We saw another sequential increase in e-Commerce sales, which reached 5% of
total sales in the quarter, while traffic to the site increased to 1.9 million
visitors per week. For the full year, e-Commerce will contribute approximately
4% to fiscal 2014 total sales – putting us readily on track to reach our
targeted contribution of 10% of total sales by the end of fiscal 2016.”

“Despite the difficult fourth quarter in our stores, we made further
advancements under our ‘1 Pier 1’ strategy, strengthened our portfolio of Pier
1 Imports stores and returned cash to our shareholders through share
repurchases and cash dividends. We are entering fiscal 2015 in a clean
inventory position. We have a compelling assortment of spring merchandise in
store and online and the initial customer response has been extremely
positive. We’re particularly excited about our outdoor collection this spring,
which is our strongest to date thanks to the early success of both Pier1.com
and Express Request, which enable us to broaden the assortment available to
our customers.”

Mr. Smith concluded, “We remain confident in our long-term outlook – in fact,
strategically, we are in better shape than ever. We have a clear vision of how
‘1 Pier 1’ will evolve, as well as a highly talented team of executives and
associates who are executing at every level. Additionally, we have the balance
sheet to support our growth plans and also allow us to return value to our
shareholders. We look forward to updating you on spring selling trends on our
year-end earnings call in April, at which time we’ll also introduce our
financial guidance for fiscal 2015.”

Financial Guidance

The Company’s fiscal 2014 fourth quarter and fiscal year will include 13 weeks
and 52 weeks of operating results, respectively. This compares to the fourth
quarter and full year of fiscal 2013, which included 14 weeks and 53 weeks,
respectively. As previously disclosed, the Company estimates the 53^rd week of
fiscal 2013 contributed $29 million to net sales and approximately $0.03 to
earnings per share. The Company is providing the following financial guidance
for the fiscal 2014 fourth quarter on a comparable 13-week basis:

  *Total sales of approximately $512 million to $514 million
  *Comparable store sales for the 13 weeks ended March 1, 2014 approximately
    flat versus the 13 weeks ended March 2, 2013
  *Comparable store sales decline of approximately 5% for the 13 weeks ended
    March 1, 2014, compared to the 13 weeks ended February 23, 2013
  *Earnings per share in the range of $0.40 to $0.41, compared to prior
    guidance of $0.47 to $0.52

The Company is providing the following financial guidance for fiscal year 2014
on a comparable 52-week basis:

  *Total sales growth of approximately 5.5%
  *Comparable store sales growth of approximately 2%
  *Depreciation and amortization of approximately $39 million compared to $31
    million in FY13
  *Effective annual income tax rate of approximately 38.4% compared to 35.6%
    in FY13
  *Earnings per share in the range of $1.00 to $1.01, compared to prior
    guidance of $1.07 to $1.12

Raymond James 35^th Annual Institutional Investors Conference

The Company today announced that it is participating in the Raymond James 35th
Annual Institutional Investors Conference being held March 2-5, 2014 at the JW
Marriott Orlando Grande Lakes Hotel in Orlando, Florida. Alex W. Smith,
President and Chief Executive Officer, and Cary Turner, Senior Executive Vice
President and Chief Financial Officer, will deliver a presentation on Monday,
March 3^rd at 9:50 a.m. Eastern Time.

Fourth Quarter and Fiscal 2014 Year-End Results

The Company will announce fourth quarter and fiscal 2014 year-end results for
the period ending March 1, 2014 on April 10, 2014 and will host a conference
call at 10:00 a.m. Central Time that morning 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 4100558.

A replay will be available after 12:00 p.m. Central Time for a 24-hour period
and the replay can be accessed by dialing 1-855-859-2056, or if international,
1-404-537-3406 using conference ID number 4100558.

Financial Disclosure Advisory

The Company reports its financial results in accordance with U.S. generally
accepted accounting principles (GAAP). All figures in this release are
preliminary and remain subject to the completion of the normal quarter-end and
annual accounting procedures and adjustments, including completion of our
annual audit, which could result in changes to these preliminary results.

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, and other filings. 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


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