Jun. 18--Pier 1 Imports Inc. did something Thursday that it hasn't done for years: report a profit.

The Fort Worth-based home furnishings retailer swung to a fiscal first-quarter profit and beat analyst forecasts as it lowered debt and inventory levels, increased margins and renegotiated store leases.

The company reported net income of $29 million, or 32 cents a share, in the period ended May 30, compared with a net loss of $33 million, or 37 cents a year ago.

Same-store sales fell a better-than-expected 7.5 percent and total sales fell to $281 million from $310 million last year.

According to Thomson Reuters, analysts expected Pier 1 to report a net loss of 36 cents a share. Sales were forecast to fall 10.9 percent to $276.2 million in the spring quarter.

Pier 1 ended the quarter with 1,073 stores in North America and plans to close 50 stores this year.

So far, ongoing negotiations with its landlords resulted in $9 million in rent savings and agreements to terminate the leases on 22 stores. It plans to close an additional 5 stores where it couldn't get landlords to lower terms.

The company said in early February that it planned to close as many as 125 stores if rent negotiations were unsuccessful.

Pier 1 has also asked shareholders to approve a reverse stock split at its annual meeting on July 1. The move is part of its solution presented to the New York Stock Exchange to meet listing requirements after its price fell below $1 for an extended time.

Shares closed at $1.94 on Wednesday and could trade higher on improved earnings.

-----

To see more of The Dallas Morning News, or to subscribe to the newspaper, go to http://www.dallasnews.com.

Copyright (c) 2009, The Dallas Morning News

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

PIR, TRIN, TRI, NYX,

A service of YellowBrix, Inc.