LOS ANGELES, Oct 12 (Reuters) - Shares of Pier 1 Imports Inc jumped 16.6 percent on Monday after the retailer said year-on-year sales at established stores rose 9.9 percent in September and that merchandise margins continue to improve.
Shares of Pier 1 -- which fell as low as 10 cents in March -- rose to $5.14 in extended trade from their close of $4.41 on the New York Stock Exchange.
Fort Worth, Texas-based Pier 1 said it significantly reduced markdown and clearance activity, which helped third-quarter merchandise margins improve from the year earlier period.
Inventory levels should peak at the end of the quarter at around $350 million, the company said in a statement.
Should company shares continue to recover, management expects to exercise its right to terminate the conversion rights of the holders of its 9 percent convertible notes issued during the second quarter, the retailer said.
(Reporting by Lisa Baertlein; Editing Bernard Orr) Keywords: PIER1IMPORTS/ (lisa.baertlein@thomsonreuters.com; +1 213 955 6742; Reuters Messaging: lisa.baertlein.reuters.com@reuters.net; ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Shares of Pier 1 -- which fell as low as 10 cents in March -- rose to $5.14 in extended trade from their close of $4.41 on the New York Stock Exchange.
Fort Worth, Texas-based Pier 1 said it significantly reduced markdown and clearance activity, which helped third-quarter merchandise margins improve from the year earlier period.
Inventory levels should peak at the end of the quarter at around $350 million, the company said in a statement.
Should company shares continue to recover, management expects to exercise its right to terminate the conversion rights of the holders of its 9 percent convertible notes issued during the second quarter, the retailer said.
(Reporting by Lisa Baertlein; Editing Bernard Orr) Keywords: PIER1IMPORTS/ (lisa.baertlein@thomsonreuters.com; +1 213 955 6742; Reuters Messaging: lisa.baertlein.reuters.com@reuters.net; ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
