Updated from 8:02 a.m. EST

Pier 1 Imports ( PIR) fell short of fourth-quarter earnings expectations as its profit fell more than 10% from a year ago.

Net income was $48.4 million, or 53 cents a share, vs. $54 million, or 57 cents a share, in the year-ago period. Excluding an after-tax charge of $1.6 million, or 2 cents a share, for a legal settlement, the home furnishings retailer earned 55 cents a share. Analysts expected 54 cents a share, according to Thomson One Analytics.

Revenue at the Fort Worth, Texas-based company rose 6.6% to $555.2 million from $521 million in the 2003 period, while same-store sales for the quarter ended Feb. 28 declined 2.7%. Operating costs rose to $479.4 million from $435.6 a year ago.

The company forecast first-quarter earnings of 21 cents to 24 cents a share and full-year EPS of $1.44 to $1.52. The consensus estimates for those periods are 23 cents and $1.50 a share, respectively.

Same-store sales are expected to rise 2% to 4% in the current quarter, the company said.

Shares fell 55 cents, or 2.3%, to $23.15.

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