8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
FORM 8-K
CURRENT REPORTPursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)  April 2, 2015

PIER 1 IMPORTS, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-07832	75-1729843
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

100 Pier 1 Place, Fort Worth, Texas 76102

(Address of principal executive offices, including zip code)

817-252-8000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: (see General Instruction A.2. below):

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02   Results of Operations and Financial Condition.

On April 8, 2015, Pier 1 Imports, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the fourth quarter and fiscal year ended February 28, 2015. A copy of this press release is attached hereto as Exhibit 99.1.

The information contained in this Current Report pursuant to this “Item 2.02 Results of Operations and Financial Condition” is being furnished. The information in this Item of Form 8-K and on Exhibit 99.1 attached hereto shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item 5.02    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e) On April 2, 2015, the Compensation Committee and the Board of Directors of the Company approved the Company’s short- and long-term incentives for executive officers for fiscal year 2016.

The Company’s president and chief executive officer Alexander W. Smith, its interim chief financial officer Laura A. Coffey, and its named executive officers, Michael R. Benkel, Catherine David and Sharon M. Leite, will each be eligible to receive short- and long-term incentives for fiscal year 2016.

The short-term incentive provides for the executive’s receipt of a performance-based cash award pursuant to the Pier 1 Imports, Inc. 2006 Stock Incentive Plan, which allows for cash performance awards in addition to stock based awards. Eighty percent of the incentive is based on the Company’s achievement of targeted adjusted consolidated operating cash earnings before interest, taxes, depreciation and amortization from all domestic and international operations, but not including discontinued operations, unusual or non-recurring charges nor recurring non-cash items.  This performance measure is referred to as the "Profit Goal".  Twenty percent of the incentive is based on a performance measure of the Company’s e-Commerce sales.  This performance measure is referred to as the “e-Commerce Sales Goal”.

The short-term cash incentive for each of the executive officers identified above is expressed as a percentage of the executive's fiscal year 2016 annual base salary. Mr. Smith's annual incentive potential is 115% of his annual base salary and each other executive's annual incentive potential is 75% of her or his annual base salary.

Each short-term cash incentive is designed to provide a cash payment on the following basis:

• 30% of the executive officer's annual incentive potential if the Company satisfies the threshold annual Profit Goal, increasing to
• 100% of the executive officer's annual incentive potential if the Company satisfies the target annual Profit Goal and the target annual e-Commerce Sales Goal, increasing to
• 200% of the executive officer's annual incentive potential if the Company satisfies the maximum annual Profit Goal and the maximum annual e-Commerce Sales Goal.

Earned cash incentives are payable with respect to fiscal year 2016 based upon the achievement of the performance measures for fiscal year 2016 within the above ranges.  The executive officer must be employed by Pier 1 Imports on the last day of the applicable performance period to receive an award.

The long-term incentive provides the opportunity to receive restricted stock awards pursuant to the Pier 1 Imports, Inc. 2006 Stock Incentive Plan. Each of the Company’s executive officers identified above other than Mr. Smith will be granted a fiscal year 2016 long-term equity incentive award of restricted stock as follows:

• Approximately 40% of the shares will vest one-third per year on the anniversary date of the grant;
• Approximately 50% of the shares will vest within a range of 50% - 200% of such shares after the Company’s fiscal year 2018 based upon the Company’s achievement of a cumulative Profit Goal for fiscal years 2016, 2017 and 2018; and
• Approximately 10% of the shares will vest within a range of 50% - 200% of such shares at the end of the Company’s fiscal year 2018 based on the Company’s percentile ranking of the annual equivalent return of the Company’s total shareholder return relative to its peer group companies using the average closing stock price of the Company and the peer group companies during the twenty trading days at the beginning of fiscal year 2016 and the average closing stock price during the twenty trading days at the end of fiscal year 2018. The peer group is comprised of the companies in the Russell 1000 Specialty Retail Index, with the addition of any other specialty retailers included in the Company’s peer group for executive compensation purposes.

Each executive officer must be employed by Pier 1 Imports on the grant date and each vesting date to receive the award. Mr. Smith’s long-term incentives are governed by his employment agreement and his fiscal 2016 grants were described in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 5, 2015.

Item 7.01    Regulation FD Disclosure.

On April 2, 2015, the Company issued a press release announcing that April 27, 2015, is the record date for its Annual Meeting of Shareholders to be held June 25, 2015.  A copy of this press release is attached hereto as Exhibit 99.2.

On April 8, 2015, the Company issued a press release announcing the Company’s declaration of a quarterly cash dividend. A copy of this press release is attached hereto as Exhibit 99.3.

Item 9.01    Financial Statements and Exhibits.

(d)  Exhibits.
Exhibit No.	Description
99.1	Press release dated April 8, 2015, announcing the Company’s financial results for the fourth quarter and fiscal year ended February 28, 2015.
99.2	Press release dated April 2, 2015, announcing the Company’s Annual Meeting of Shareholders.
99.3	Press release dated April 8, 2015, announcing the Company’s declaration of a quarterly cash dividend.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			PIER 1 IMPORTS, INC.
Date:	April 8, 2015	By:	/s/ Michael A. Carter
			Michael A. Carter, Senior Vice President
			Compliance and General Counsel, Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated April 8, 2015, announcing the Company’s financial results for the fourth quarter and fiscal year ended February 28, 2015.
99.2	Press release dated April 2, 2015, announcing the Company’s Annual Meeting of Shareholders.
99.3	Press release dated April 8, 2015, announcing the Company’s declaration of a quarterly cash dividend.

EX-99.1

Exhibit 99.1

Pier 1 Imports, Inc. Reports Fourth Quarter and Fiscal Year 2015 Financial Results

Provides Q1 and Fiscal Year 2016 Financial Guidance; Announces Real Estate Optimization Initiative

FORT WORTH, Texas--(BUSINESS WIRE)--April 8, 2015--Pier 1 Imports, Inc. (NYSE:PIR) today reported financial results for the fourth quarter and fiscal year ended February 28, 2015.

Fiscal 2015 Key Financial Metrics

• Total sales increased 5.3% (5.8% on a constant currency basis);
• Company comparable sales rose 4.7% (5.2% on a constant currency basis);
• E-Commerce sales represented 11% of total sales;
• Gross profit of $749.7 million, or 40.2% of total sales; Merchandise margin of $1.081 billion, or 58.0% of total sales;
• Net income of $75.2 million; EBITDA of $176.3 million, or 9.5% of total sales;
• Operating income of $127.3 million, or 6.8% of total sales;
• Fully diluted earnings per share of $0.82; Adjusted fully diluted earnings per share of $0.84;
• Repurchased $173.9 million of the Company’s common stock in fiscal 2015; and
• Distributed $21.6 million to shareholders through quarterly cash dividends.

Fiscal 2015 Operating Highlights

• Upgraded information technology and systems in support of ‘1 Pier 1,’ including:
  • Optimization of www.pier1.com for mobile devices
  • Improved site speed and streamlined checkout
  • Online recommendations
• Strengthened merchandising, marketing, e-Commerce and information technology teams;
• Expanded online-only merchandise assortments;
• Rolled out nationwide white-glove, in-home delivery;
• Introduced new in-store selling tools, including swatch stations, PCs and tablets; and
• Opened a second e-Commerce fulfillment center.

Alex W. Smith, President and Chief Executive Officer, stated, “Our omni-channel transformation is largely complete and from a brand strength and customer facing perspective we could not be more pleased with the results. However, fiscal 2015 clearly did not turn out as we had originally budgeted and we are very disappointed with the result. Our job now is to use the strength of the Pier 1 Imports brand and our investments in it to improve our profitability.”

“We are confident in the investments we have made which have allowed us not only to build a $200+ million e-Commerce channel in just two years, but also a platform to develop new growth vehicles and brands. In the short term our focus is on improving the profitability of our Pier 1 Imports brand. We now have the ability to engage our customers more frequently – through broader product offerings, expanded customer service options, tailored merchandising and marketing strategies and aspirational brand positioning. Pier 1 Imports’ brand health and competitive positioning remain strong, our customer can shop however she chooses, and we have multiple paths to grow the business and drive improved profitability.”

Fourth Quarter Fiscal 2015 Results

Net income for the fourth quarter ended February 28, 2015, was $33.1 million, or $0.37 per share, compared to $42.6 million, or $0.41 per share in the fourth quarter ended March 1, 2014. In the fourth quarter of fiscal 2015, non-GAAP adjusted net income (excluding the after-tax effect of retirement related expenses for the Company’s former chief financial officer) was $35.1 million, or $0.39 per share (see GAAP to non-GAAP reconciliation below). Total sales for the fourth quarter were $543.6 million compared to $515.8 million in the same period last year. Company comparable sales increased 5.7% (6.4% on a constant currency basis after adjusting for a 70 basis point impact attributable to the year-over-year devaluation of the Canadian Dollar) and reflect increases in brand traffic and average ticket, and online conversion.

Merchandise margin (the result of adding back delivery, fulfillment and store occupancy costs to gross profit) in the fourth quarter totaled $302.1 million, or 55.6% of total sales, compared to $292.0 million, or 56.6% of total sales in the fourth quarter of fiscal 2014. The year-over-year decline in merchandise margin, as a percentage of total sales, is attributable to approximately $6.0 million of increased supply chain expenses, primarily incremental costs incurred within the Company’s distribution network during the quarter. Incremental costs related to the Company’s distribution network – which impacts merchandise margin – will be ongoing in the first quarter of fiscal 2016, and will affect the first and second quarters. Gross profit in the fourth quarter totaled $214.4 million, or 39.4% of total sales, compared to $214.4 million, or 41.6% of total sales in the fourth quarter of fiscal 2014.

Fourth quarter selling, general and administrative expenses were $149.0 million, or 27.4% of total sales, compared to $133.9 million, or 26.0% of total sales a year ago. The following table details the breakdown of selling, general and administrative expenses for the fourth quarter of fiscal 2015 as compared to the same period last year (in millions).

	Three Months Ended
	February 28, 2015				March 1, 2014
	Expense		% of Sales		Expense		% of Sales
Compensation for operations	$	72.6	13.4	%	$	66.3	12.8	%
Operational expenses		18.0	3.3	%		17.8	3.5	%
Marketing		20.8	3.8	%		19.8	3.8	%
Other selling, general and administrative		37.6	6.9	%		30.1	5.8	%
Total selling, general and administrative	$	149.0	27.4	%	$	133.9	26.0	%

EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter of fiscal 2015 was $67.6 million compared to $80.8 million for the same period in the prior year. Fourth quarter operating income was $53.1 million compared to $70.1 million in the fourth quarter of fiscal 2014.

Fiscal 2015 Results

For the fiscal year ended February 28, 2015, the Company reported net income of $75.2 million, or $0.82 per share, compared to $107.5 million, or $1.01 per share for the fiscal year ended March 1, 2014. In fiscal 2015, non-GAAP adjusted net income (excluding the after-tax effect of retirement related expenses mentioned above) was $77.2 million, or $0.84 per diluted share (see GAAP to non-GAAP reconciliation below). Fiscal 2015 total sales increased 5.3% to $1.866 billion, from $1.772 billion last year. Company comparable sales increased 4.7% (5.2% on a constant currency basis after adjusting for a 50 basis point impact attributable to the year-over-year devaluation of the Canadian Dollar) and reflect increases in brand traffic, store and online conversion and average ticket.

The Company generated merchandise margin of $1.081 billion, or 58.0% of total sales, compared to $1.048 billion, or 59.2% of sales in fiscal 2014. Fiscal 2015 gross profit totaled $749.7 million, or 40.2% of total sales, compared to $745.6 million, or 42.1% of sales in fiscal 2014.

Selling, general and administrative expenses were $576.1 million, or 30.9% of total sales, compared to $531.2 million, or 30.0% of total sales a year ago. The following table details the breakdown of selling, general, and administrative expenses for fiscal 2015, as compared to fiscal 2014 (in millions).

	Twelve Months Ended
	February 28, 2015				March 1, 2014
	Expense		% of Sales		Expense		% of Sales
Compensation for operations	$	270.4	14.5	%	$	256.4	14.5	%
Operational expenses		66.8	3.6	%		58.5	3.3	%
Marketing		101.0	5.4	%		90.2	5.1	%
Other selling, general and administrative		137.9	7.4	%		126.2	7.1	%
Total selling, general and administrative	$	576.1	30.9	%	$	531.2	30.0	%

Full year fiscal 2015 EBITDA was $176.3 million compared to $215.4 million in the prior year. Operating income was $127.3 million compared to $175.5 million in fiscal 2014.

Balance Sheet Highlights and Share Repurchase Program

As of February 28, 2015, the Company remained in strong financial condition with $100.1 million of cash and cash equivalents, $199.0 million outstanding under its term loan, and no cash borrowings under its $350 million revolving line of credit. Inventories at fiscal 2015 year end totaled $478.8 million, compared to $377.7 million in the prior year. Capital expenditures for fiscal 2015 totaled $81.9 million and were used for infrastructure and technology development in support of ‘1 Pier 1,’ supply chain upgrades, existing store improvements and new store openings.

“Although fiscal 2015 ending inventories are higher than originally planned, their complexion is healthy and not believed to pose a substantial markdown risk,” stated Mr. Smith. “We expect inventory levels to begin to moderate as we move through the second half of fiscal 2016. Importantly, sell-through on our Easter merchandise was robust - we anticipate that Company comparable sales growth will be approximately 4% in the first quarter, reflecting strong customer response to our spring assortments.”

During the fiscal year ended February 28, 2015, the Company repurchased a total of 10.3 million shares of its common stock for approximately $173.9 million, or 10.4% of its shares of common stock outstanding as of the start of fiscal 2015. Of the Company’s $200 million share repurchase program announced in April 2014, $122.2 million remains available for repurchases.

As of April 8, 2015, approximately 90.2 million shares of the Company’s common stock were outstanding.

“In fiscal 2016 our financial priorities include implementing strict expense controls, reducing capital expenditures and lowering store costs. To that end, we will begin making strategic reductions to the size of our store base as e-Commerce sales penetration continues to increase. We anticipate these actions will help drive EBITDA dollar growth in fiscal year 2016, and have a more pronounced effect in fiscal year 2017. We also expect to continue to generate strong cash flow. We plan to continue to return excess capital to shareholders through share repurchases and cash dividends. Today we announced a 17% increase in our quarterly dividend to $0.07 per share,” stated Mr. Smith.

Real Estate Optimization Initiative

The Company has initiated a plan to optimize its store portfolio as part of its ‘1 Pier 1’ strategy to drive growth through its omni-channel platform, reduce occupancy and payroll costs and improve efficiency. The Company plans to close approximately 100 stores over the next three years, primarily through natural lease expirations and relocations.

Laura Coffey, Executive Vice President and Interim CFO, stated, “We have a profitable network of Pier 1 Imports stores that are central to our competitive positioning and ability to deliver a superior customer experience. However, as the dynamic between stores and e-Commerce continues to evolve, we plan to selectively take advantage of natural lease expirations to reduce occupancy costs. We have identified approximately 100 stores which, while slightly profitable at the store level today, when closed over a natural cycle will be accretive to EBITDA. Within three years we expect to operate just under 1,000 retail stores. Going forward, we will continue to refine our financial strategy, including careful management of selling, general and administrative expenses, to maximize profitability and cash flow.”

Mr. Smith concluded, “Looking ahead to fiscal 2017, we expect to achieve measured top line growth, inclusive of store closures, and grow e-Commerce sales penetration to approximately 20%. Our priority is to leverage the investments made to date in our omni-channel business and more purposefully manage the main operating levers of our new business model, namely store related expenses – occupancy and payroll – and also fulfillment costs. As e-Commerce sales, specifically fulfilled sales, continue to grow, our execution against these levers is expected to contribute to strong year-over-year improvement in EBITDA, operating income and EPS.”

Fiscal 2016 Full-Year and First Quarter Financial Guidance

The Company is providing the following guidance for full-year fiscal 2016:

• Company comparable sales growth, which includes e-Commerce, in the mid-single digits;
• Merchandise margin, as a percentage of sales, of 58.0% to 58.2%;
• Selling, general and administrative expenses approximately flat to slightly leveraged, as a percentage of sales, compared to fiscal 2015;
• EBITDA margins comparable to fiscal 2015;
• Depreciation of approximately $50 million to $55 million;
• Operating income, as a percentage of sales, comparable to fiscal 2015;
• Earnings per share in the range of $0.83 to $0.87, utilizing a fully diluted share count of approximately 89 million shares; and
• Capital expenditures of approximately $60 million.

The Company has provided the following guidance for the first quarter of fiscal 2016:

• Company comparable sales growth, which includes e-Commerce, of approximately 4.0%; and
• Earnings per share in the range of $0.07 to $0.08, utilizing a fully diluted share count of approximately 90 million shares.

Fourth Quarter and Fiscal 2015 Results Conference Call

The Company will host a conference call to discuss fiscal 2015 fourth quarter and fiscal year financial results at 3:30 p.m. Central Time today. Investors will be able to connect to the call through the Company’s website at www.pier1.com. The conference call can be accessed by linking through to the “Investor Relations” page to the “Events” page, or you can listen to the conference call by dialing 1-800-498-7872, or if international, 1-706-643-0435. The conference ID number is 88750369.

A replay will be available after 6:00 p.m. Central Time for a 24-hour period and the replay can be accessed by dialing 1-855-859-2056, or if international, 1-404-537-3406 using conference ID number 88750369.

Financial Disclosure Advisory

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). This press release references non-GAAP financial measures including merchandise margin, contribution from operations, EBITDA, adjusted net income and adjusted diluted earnings per share.

The Company believes that the non-GAAP financial measures included in this press release allow management and investors to understand and compare results in a more consistent manner for the three- and twelve-month periods ended February 28, 2015, and the three- and twelve-month periods ended March 1, 2014. Non-GAAP financial measures should be considered supplemental and not a substitute for the Company’s results reported in accordance with GAAP for the periods presented.

A reconciliation of GAAP net income and diluted earnings per share to non-GAAP adjusted net income and adjusted diluted earnings per share is shown below for the three- and twelve-month periods ended February 28, 2015 (in millions except per share amounts).

	Fiscal Year 2015
	Three Months Ended		Twelve Months Ended
	February 28, 2015		February 28, 2015
Net income (GAAP)	$	33.1	$	75.2
Add back: Retirement related expenses, net of tax (non-GAAP)		2.0		2.0
Adjusted net income (non-GAAP)	$	35.1	$	77.2
Diluted earnings per share (GAAP)	$	0.37	$	0.82
Add back: Retirement related expenses, net of tax (non-GAAP)		0.02		0.02
Adjusted diluted earnings per share (non-GAAP)	$	0.39	$	0.84

Merchandise margin represents the result of adding back delivery, fulfillment and store occupancy costs to gross profit. Contribution from operations represents gross profit, less compensation for operations (which includes store and customer service payroll) and operational expenses. EBITDA represents earnings before interest, taxes, depreciation and amortization. Management believes merchandise margin, contribution from operations and EBITDA are meaningful indicators of the Company’s performance which provide useful information to investors regarding its financial condition and results of operations. Management uses merchandise margin, contribution from operations and EBITDA, together with financial measures prepared in accordance with GAAP, to assess the Company’s operating performance, to enhance its understanding of core operating performance and to compare the Company’s operating performance to other retailers. These non-GAAP financial measures should not be considered in isolation or used as an alternative to GAAP financial measures and do not purport to be an alternative to net income or gross profit as a measure of operating performance. A reconciliation of net income to EBITDA to contribution from operations to merchandise margin is shown below for the periods indicated (in millions).

		Three Months Ended										Twelve Months Ended
		February 28, 2015					March 1, 2014					February 28, 2015					March 1, 2014
		$ Amount			% of Sales		$ Amount			% of Sales		$ Amount			% of Sales		$ Amount			% of Sales
Merchandise margin (non-GAAP)		$	302.1		55.6	%	$	292.0		56.6	%	$	1,081.2		58.0	%	$	1,048.1		59.2	%
Less:	Delivery and fulfillment costs		12.3		2.3	%		4.4		0.9	%		32.9		1.8	%		14.0		0.8	%
	Store occupancy		75.4		13.9	%		73.2		14.2	%		298.7		16.0	%		288.4		16.3	%
Gross profit (GAAP)			214.4		39.4	%		214.4		41.6	%		749.7		40.2	%		745.6		42.1	%
Less:	Compensation for operations		72.6		13.4	%		66.3		12.8	%		270.4		14.5	%		256.4		14.5	%
	Operational expenses		18.0		3.3	%		17.8		3.5	%		66.8		3.6	%		58.5		3.3	%
Contribution from operations (non-GAAP)			123.8		22.8	%		130.4		25.3	%		412.5		22.1	%		430.7		24.3	%
Less:	Other nonoperating income/expense		(2.1	)	(0.4	%)		(0.3	)	(0.1	%)		(2.8	)	(0.1	%)		(1.0	)	(0.1	%)
	Marketing and other SG&A		58.4		10.7	%		49.8		9.7	%		238.9		12.8	%		216.4		12.2	%
EBITDA (non-GAAP)			67.6		12.4	%		80.8		15.7	%		176.3		9.5	%		215.4		12.2	%
Less:	Income tax provision		19.5		3.6	%		27.3		5.3	%		45.2		2.4	%		67.1		3.8	%
	Interest expense, net		2.7		0.5	%		0.5		0.1	%		9.6		0.5	%		1.8		0.1	%
	Depreciation and amortization		12.3		2.2	%		10.4		2.0	%		46.3		2.5	%		38.9		2.2	%
Net income (GAAP)		$	33.1		6.1	%	$	42.6		8.3	%	$	75.2		4.0	%	$	107.5		6.1	%

This press release may be deemed to include forward-looking statements that are based on management’s current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as “believe,” “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “intend” and similar expressions. Management’s expectations and assumptions regarding future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements included in this press release. These risks and uncertainties include, but are not limited to, consumer spending patterns, inventory levels and values, the Company’s ability to implement planned cost control measures, expected benefits from the real estate optimization initiative, including cost savings and increases in efficiency, and changes in foreign currency values relative to the U.S. Dollar. These and other factors that could cause results to differ materially from those described in the forward-looking statements contained in this press release can be found in the Company’s Annual Report on Form 10-K and in other filings with the SEC. Refer to the Company’s most recent SEC filings for any updates concerning these and other risks and uncertainties that may affect the Company’s operations and performance. Undue reliance should not be placed on forward-looking statements, which are only current as of the date they are made. The Company assumes no obligation to update or revise its forward-looking statements.

Pier 1 Imports, Inc. is the original global importer of home décor and furniture. Information about the Company is available on www.pier1.com.

(Financials Attached)

Pier 1 Imports, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share amounts)
(unaudited)
	Three Months Ended
	February 28,			% of		March 1,			% of
	2015			Sales		2014			Sales
Net sales	$	543,600		100.0	%	$	515,786		100.0	%
Cost of sales		329,158		60.6	%		301,350		58.4	%
Gross profit		214,442		39.4	%		214,436		41.6	%
Selling, general and administrative expenses		149,028		27.4	%		133,894		26.0	%
Depreciation and amortization		12,272		2.2	%		10,412		2.0	%
Operating income		53,142		9.8	%		70,130		13.6	%
Nonoperating (income) and expenses:
Interest, investment income and other		(2,500	)				(505	)
Interest expense		3,044					726
		544		0.1	%		221		0.0	%
Income before income taxes		52,598		9.7	%		69,909		13.6	%
Income tax provision		19,509		3.6	%		27,317		5.3	%
Net income	$	33,089		6.1	%	$	42,592		8.3	%
Earnings per share:
Basic	$	0.37				$	0.42
Diluted	$	0.37				$	0.41
Dividends declared per share:	$	0.06				$	0.06
Average shares outstanding during period:
Basic		88,426					101,430
Diluted		89,421					103,024

Pier 1 Imports, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share amounts)
(unaudited)
	Twelve Months Ended
	February 28,			% of		March 1,			% of
	2015			Sales		2014			Sales
Net sales	$	1,865,782		100.0	%	$	1,771,743		100.0	%
Cost of sales		1,116,076		59.8	%		1,026,180		57.9	%
Gross profit		749,706		40.2	%		745,563		42.1	%
Selling, general and administrative expenses		576,131		30.9	%		531,190		30.0	%
Depreciation and amortization		46,304		2.5	%		38,873		2.2	%
Operating income		127,271		6.8	%		175,500		9.9	%
Nonoperating (income) and expenses:
Interest, investment income and other		(3,391	)				(1,721	)
Interest expense		10,260					2,572
		6,869		0.4	%		851		0.0	%
Income before income taxes		120,402		6.4	%		174,649		9.9	%
Income tax provision		45,240		2.4	%		67,118		3.8	%
Net income	$	75,162		4.0	%	$	107,531		6.1	%
Earnings per share:
Basic	$	0.83				$	1.03
Diluted	$	0.82				$	1.01
Dividends declared per share:	$	0.24				$	0.21
Average shares outstanding during period:
Basic		91,081					104,121
Diluted		92,128					106,248

Pier 1 Imports, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands except share amounts)
(unaudited)
	February 28,			March 1,
	2015			2014
ASSETS
Current assets:
Cash and cash equivalents, including temporary investments of $69,572 and $121,446, respectively	$	100,064		$	126,695
Accounts receivable, net		29,405			24,614
Inventories		478,843			377,650
Prepaid expenses and other current assets		45,851			47,547
Total current assets		654,163			576,506
Properties, net of accumulated depreciation of $446,237 and $424,246, respectively		214,048			183,352
Other noncurrent assets		41,993			43,765
	$	910,204		$	803,623
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	102,762		$	84,238
Gift cards and other deferred revenue		63,002			57,428
Accrued income taxes payable		13,505			14,025
Current portion of long-term debt		2,000			-
Other accrued liabilities		107,544			110,278
Total current liabilities		288,813			265,969
Long-term debt		204,746			9,500
Other noncurrent liabilities		79,378			78,722
Shareholders' equity:
Common stock, $0.001 par, 500,000,000 shares authorized, 125,232,000 issued		125			125
Paid-in capital		222,438			235,637
Retained earnings		713,575			660,040
Cumulative other comprehensive loss		(9,985	)		(6,114	)
Less --35,320,000 and 26,517,000 common shares in treasury, at cost, respectively		(588,886	)		(440,256	)
		337,267			449,432
	$	910,204		$	803,623

Pier 1 Imports, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
	Year Ended
	February 28,			March 1,
	2015			2014
Cash flows from operating activities:
Net income	$	75,162		$	107,531
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization		54,299			45,803
Stock-based compensation expense		7,332			11,984
Deferred compensation		8,244			6,739
Deferred income taxes		7,647			13,907
Excess tax benefit from stock-based awards		(2,694	)		(2,265	)
Amortization of deferred gains		(3,575	)		(3,180	)
Change in reserve for uncertain tax positions		(1,078	)		6,241
Other		(2,486	)		(3,665	)
Changes in cash from:
Inventories		(101,193	)		(21,597	)
Proprietary credit card receivables		(351	)		(1,585	)
Prepaid expenses and other assets		(4,120	)		(6,697	)
Accounts payable and accrued expenses		26,330			14,034
Accrued income taxes payable, net of payments		2,174			(8,018	)
Net cash provided by operating activities		65,691			159,232
Cash flows from investing activities:
Capital expenditures		(81,859	)		(80,306	)
Proceeds from disposition of properties		35			12,593
Proceeds from sale of restricted investments		1,715			758
Purchase of restricted investments		(3,192	)		(3,196	)
Net cash used in investing activities		(83,301	)		(70,151	)
Cash flows from financing activities:
Cash dividends		(21,627	)		(21,697	)
Purchases of treasury stock		(185,540	)		(192,284	)
Stock options exercised, stock purchase plan and other, net		2,088			18,923
Excess tax benefit from stock-based awards		2,694			2,265
Issuance of long-term debt, net of discount		198,000			-
Repayments of long-term debt		(1,000	)		-
Debt issuance costs		(3,636	)		(1,149	)
Borrowing of notes payable		60,000			-
Repayments of notes payable		(60,000	)		-
Net cash used in financing activities		(9,021	)		(193,942	)
Change in cash and cash equivalents		(26,631	)		(104,861	)
Cash and cash equivalents at beginning of period		126,695			231,556
Cash and cash equivalents at end of period	$	100,064		$	126,695

CONTACT:
Pier 1 Imports, Inc.
Bryan Hanley, 817-252-6083

EX-99.2

Exhibit 99.2

Pier 1 Imports, Inc. Announces Annual Meeting of Shareholders

FORT WORTH, Texas--(BUSINESS WIRE)--April 2, 2015--Pier 1 Imports, Inc. (NYSE:PIR) today announced that April 27, 2015, is the record date for its Annual Meeting of Shareholders to be held June 25, 2015.

As previously announced on February 10, 2015, the Company will release fourth quarter and fiscal 2015 year-end results for the period ending February 28, 2015, after market close on April 8, 2015, and will host a conference call at 3:30 p.m. Central Time that afternoon to discuss the results. Investors will be able to connect to the call through the Company’s website at www.pier1.com. The conference call can be accessed by linking through to the “Investor Relations” page to the “Events” page, or you can listen to the conference call by dialing 1-800-498-7872, or if international, 1-706-643-0435. The conference ID number is 88750369.

A replay will be available after 6:00 p.m. Central Time and can be accessed by dialing 1-855-859-2056, or if international, 1-404-537-3406 using conference ID number 88750369.

Pier 1 Imports, Inc. is the original global importer of home décor and furniture. Information about the Company is available on www.pier1.com.

CONTACT:
Pier 1 Imports, Inc.
Bryan Hanley, 817-252-6083

EX-99.3

Exhibit 99.3

Pier 1 Imports, Inc. Declares Quarterly Cash Dividend

Increases Quarterly Dividend 17%

FORT WORTH, Texas--(BUSINESS WIRE)--April 8, 2015--Pier 1 Imports, Inc. (NYSE:PIR) today announced that its Board of Directors declared a $0.07 per share quarterly cash dividend on the Company’s outstanding shares of common stock. The $0.07 quarterly cash dividend will be paid on May 6, 2015, to shareholders of record on April 22, 2015, and represents a 17% increase from the $0.06 cash dividend paid in the prior period.

Pier 1 Imports, Inc. is the original global importer of home décor and furniture. Information about the Company is available on www.pier1.com.

CONTACT:
Pier 1 Imports, Inc.
Bryan Hanley, 817-252-6083