Oct. 13--Pier 1 Imports Inc. said late Monday that its September sales increased 9.9 percent from a year ago, sending its stock price higher in after-hours trading.

Positive sales trends are continuing this month, said Alex Smith, chief executive officer.

While it's still early in the fiscal third quarter that ends Nov. 28, Smith said, "We have seen nothing to indicate that recent sales and traffic trends will not continue."

A rise in fiscal third-quarter sales will represent only the second time since 2003 that quarterly same-stores sales increased. Since August, customer traffic and the rate at which shoppers are being turned into buyers have improved.

The Fort Worth-based home furnishings chain reported the partial results in advance of meeting with shareholders and analysts in New York today. The September increase in same-store sales compares to an 11.7 percent decline last year.

Pier 1 also said leaner inventories have significantly reduced markdown and clearance activity. That's what all retailers are hoping for during this year-end holiday shopping period. Last year, stores didn't have time to adjust inventories after the economic collapse.

"As we head into November and December, we feel confident about our inventory level and our ability to manage it with significantly less markdowns than last year," he said.

Shares increased 6 percent to close at $4.41 a share.

-----

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.

NYSE:PIR,

A service of YellowBrix, Inc.