Pier 1 Imports Rises On Key Sept. Sales Results

NEW YORK (AP) — Shares of Pier 1 Imports Inc. climbed Tuesday as investors were still soaking in news that sales at stores open at least a year rose 9.9 percent in September.

Sales at stores open at least a year are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

Late Monday, the Fort Worth, Texas-based Pier 1 said the September sales figure increased as customer traffic improved. The retailer also said merchandise margins were better as it marked down fewer items and sold less inventory at clearance prices.

"The merchandise transformation at Pier 1 appears to be driving better results," Raymond James analyst Budd Bugatch wrote in a note to clients.

While Bugatch was pleased with the monthly performance he said that past experience in covering Pier 1 has taught him "not to become entrenched in one month's worth of results."

He maintained a "Strong Buy" rating.

Pier 1's stock gained 88 cents, or 20 percent, to $5.29 in morning trading. The shares reached a new 52-week high of $5.35 earlier in the session.