* Sees Q2 EPS $0.10-$0.12 vs est $0.08
* Q2 sales up 8 pct to $310 mln vs est $310.2 mln
* Comp sales up 11.2 pct
* Shares jump 14 pct
(Recasts; adds analyst comment, updates stock activity)
BANGALORE, Sept 2 Pier 1 Imports (PIR.N)
forecast its second-quarter earnings would beat estimates as it
protected margins by offering fewer promotions. Sales for the
quarter rose as the firm's colorful, funky furniture attracted
Home goods retailers have been helped by a rebound in
consumer spending after a hiatus when a weak U.S. housing
market dented demand for home furnishings.
Last month, bigger rival Williams-Sonoma Inc (WSM.N) beat
second-quarter earnings and raised its forecast for the third
Pier 1, which said earlier it would not hold its 'annual
sale', which is usually during the second quarter, has
benefited from reduced clearance activity, Raymond James
analyst Budd Bugatch wrote in a client note.
Retailers often take to discounts and "sales" to shift
excess stock and boost sales, but this often hits margins. Less
merchandise reduces the need to discount, and guards margins
... and profit.
Same-store sales at Pier 1 rose 11.2 percent for the second
quarter compared with a fall of 7.6 percent last year.
"We continue to see strengths in all parts of the country
and in all merchandise categories -- with improvements in
traffic, conversion and ticket," Chief Executive Alex Smith
said in a statement.
Merchandise margins for the second quarter are expected to
be about 58 percent of sales, said the company, whose rivals
include, Bed Bath & Beyond Inc (BBBY.O) and Williams-Sonoma.
For the second quarter ended Aug. 28, Pier 1 expects to
earn 10-12 cents a share, above analysts' estimate of 8 cents,
according to Thomson Reuters I/B/E/S.
Sales in the quarter rose 8 percent to $310 million, in
line with analyst estimates.
Shares of the Fort Worth, Texas-based company, which have
dropped by a third since a 2010 high in April, rose 14 percent
to $7.48 Thursday on the New York Stock Exchange.
(Reporting by NR Sethuraman and Vidya Lakshmi in Bangalore;
Editing by Aradhana Aravindan)