USA:Pier 1 Imports announces 3.1% decline in July sales

Texas based home furnishing maker Pier 1 Imports Inc reported sales for the four-week period ended July 30, 2005 totaled $134,593,000, a decline of 3.1 percent from $138,902,000 last year, and comparable store sales declined 7.7 percent. Year-to-date sales for the five-month period amounted to $715,560,000, down 3.8 percent from last year''s $743,875,000, and comparable store sales declined 9.3 percent. The Company will report August and second quarter sales on September 1, 2005 and second quarter results on September 15.

Marvin J. Girouard, Chairman and Chief Executive Officer, commented, "July''s comp store sales of -7.7 percent were in-line with expectations, which included softer sales the final week of the month due to a planned calendar shift in their back-to-school event. Throughout the month, comp store traffic levels remained below last year and average ticket purchases increased slightly versus the year-ago period. They continue to project second quarter comp store sales to decline in a range of mid- to high-single digits. Also, based on weaker merchandise margins resulting from promotional and clearance efforts this month, they project to be at the low end of our previous guidance of $0.03 to ($0.07) earnings (loss) per share for the second quarter.

"As new fall and holiday merchandise arrives in stores over the next several weeks, customers will see dramatic shifts in color and more relevant styles and designs in their stores. In addition, for the first time, they will distribute Pier 1''s new 84-page fall catalog to 3 million customers nationwide in early September, and have planned another nationwide catalog circulation in November for the important holiday selling season. During the third and fourth fiscal quarters this year, we have planned changes and improvements to their marketing campaign to increase its effectiveness and build customer traffic in Pier 1 stores, and we will continue to advertise with more prominent national television, radio and print media."

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.