Shares of Pier 1 Imports surged nearly 30 percent on Monday after the company reported better-than-expected preliminary sales results for its fourth fiscal quarter.
The Fort Worth-based home furnishings retailer said same-store sales for the three months ended Feb. 27 declined by 0.7 percent. But that was better than the company’s prior guidance for a decline of 2 to 4 percent.
The company also projected that its earnings will be in line with prior projections of 18 to 22 cents a share. The company’s stock (ticker: PIR) gained $1.60 to close at $7.08.
In a statement, Pier 1’s president and CEO Alex Smith said the preliminary results “reflect positive customer response to our holiday and seasonal assortments, as well as increased promotional and clearance activity during the period.”
Smith said the company reduced its inventory levels by about 15 percent by the end of the fiscal year and continues to trim costs.
“The spring selling season is underway and we are enthusiastic about our fresh assortments and expanded marketing programs, including a return to television in April,” he added.
Pier 1 plans to release its full fourth quarter results on April 13.