Pier 1 Imports (NYSE:PIR), a retailer of decorative home furnishings, announced that second quarter sales increased 8% year-over year to US$310 million, in line with analyst estimates, on strong merchandise margins and more store traffic.
Merchandise margins are expected to be approximately 58% of sales.
Comparable store sales for the second quarter improved significantly, increasing 11.2% compared to a decline of 7.6% for the same period a year ago.
For the first half of the year, total sales increased 8% year-over-year to $616 million. Comparable store sales for the same period increased 12.7%.
In a previous announcement, the company said that it will release second quarter earnings on Thursday, September 16. Second quarter earnings are expected to be in the range of $0.10 to $0.20 per share, exceeding analyst estimates of 8 cents per share.
The company’s share price rallied 14% to trade at $7.48 as of 1:43 pm ET.
Pier 1 Imports sell a variety of furniture, dining and kitchen goods, bath and bedding accessories, and other specialty items for the home. At the end of February, there were 973 Pier 1 Imports stores in the United States and 81 Pier 1 Imports stores in Canada. The company also sells its merchandise through Grupo Sanborns, a large Mexico-based retailer, and Sears Puerto Rico.