Pier 1 Imports Moves To 1st-quarter Profit

FORT WORTH, Texas (AP) — Pier 1 Imports Inc. moved to a fiscal first-quarter profit Thursday, helped by a hefty gain related to the reduction of some debt. The results easily topped Wall Street's expectations.

The home furnishings company earned $29.3 million, or 32 cents per share, for the quarter. It lost $32.8 million, or 37 cents per share, in the prior-year period.

Analysts predicted a loss of 36 cents per share, according to a Thomson Reuters survey. Analysts' estimates typically exclude one-time items.

Pier 1 said a foreign subsidiary bought some outstanding convertible senior notes during the quarter for $27 million. The purchase lowered its outstanding debt by $79 million and led to a $48 million gain.

For the period ended May 30, sales dropped 9 percent to $281.1 million from $310 million due to fewer stores being open and the recession.

While home furnishing stores have suffered from the soft housing market and pullback in consumer spending, Pier 1's revenue results still managed to beat Wall Street's estimate of $276.2 million.