Exhibit 99.1

                 Pier 1 Imports, Inc. Reports November
           Sales; Pre-announces FY06 Third Quarter Results

    FORT WORTH, Texas--(BUSINESS WIRE)--Dec. 1, 2005--Pier 1 Imports,
Inc. (NYSE:PIR) reported that sales for the four-week period ended
November 26, 2005 aggregated $177,102,000, an increase of 5.9% from
$167,192,000 last year, and comparable store sales increased 1.9%.
    Sales for the third quarter ended November 26, 2005 were
$476,243,000, down 2.4% from last year's $487,729,000, and comparable
store sales declined 6.5%. Year-to-date sales of $1,320,544,000 were
down 3.8% from $1,372,027,000 last year, and comparable store sales
declined 8.7%.
    Marvin J. Girouard, Pier 1's Chairman and Chief Executive Officer,
commented, "We are pleased to report positive comp store sales in
November and are encouraged by a good start to the holiday selling
season over the Thanksgiving Day weekend. Traffic trends continued to
improve over the prior month as business stabilized with higher
average ticket sales and increased customer conversions. Although
sales were more promotional than we had originally planned, increased
units sold supports our inventory management efforts. This is critical
during the holiday season and will facilitate the Company's plans to
reposition our merchandise mix in the spring. To note, November's comp
store sales increased 3.2% for Pier 1's North American stores, not
including comp store sales for The Pier's 45 stores located primarily
in the U.K. The Pier's results were soft due to weakness in the U.K.
economy.
    "We have 23 shopping days remaining until Christmas, which
represents over 75% of December's sales. Our projections for this
month's comp store sales are in the positive, low single-digit range.
We are pleased with increased store traffic and with our customers'
favorable response to the new and exciting gifts, holiday merchandise
and home entertainment offerings available in our stores now."
    The Company pre-announces a third quarter loss between ($0.08) and
($0.10) per share based on the following:

    --  Reported third quarter comparable store sales declined 6.5%,
        and projected merchandise margins of approximately 120 to 130
        basis points below last year, due to higher promotional
        activity,

    --  Additional de-leveraging of fixed store occupancy costs,
        resulting in gross profit in a range of 36.2% to 36.4%, versus
        39.2% last year,

    --  Incremental marketing costs of about $10 million during the
        third quarter, due to new TV advertising and two national
        catalog mailings this year that will have residual benefits in
        the fourth quarter,

    --  SG&A costs between 34.3% and 34.5%, versus 29.9% in the third
        quarter year-ago period, due to de-leveraging of fixed store
        payroll and other administrative expenses, as well as
        approximately $1 million costs from hurricanes,

    --  Operating loss for the third quarter of between $4 million and
        $6 million, and

    --  The Company's tax provision results in a charge of between
        $1.5 million and $2.5 million for the quarter, or
        approximately ($0.02) to ($0.03) per share.

    On December 15, 2005, the Company will release fiscal 2006 third
quarter results for the period ended November 26, 2005 and conduct a
conference call to discuss the third and fourth quarters.

    Any forward-looking projections or statements made in this press
release should be considered in conjunction with the cautionary
statements contained in the Company's most recently filed Form 10-Q
for fiscal year 2006. Management's expectations and assumptions
regarding planned store openings, financing of Company obligations
from operations, results from its new marketing, merchandising and
store operations strategies, and other 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. Risks and
uncertainties that may affect Company operations and performance
include, among others, the effects of terrorist attacks or other acts
of war, conflicts or war involving the United States or its allies or
trading partners, labor strikes, weather conditions or natural
disasters that may affect sales, volatility of fuel and utility costs,
the general strength of the economy and levels of consumer spending,
consumer confidence, the availability of new sites for expansion along
with sufficient labor to facilitate growth, the strength of new home
construction and sales of existing homes, the availability and proper
functioning of technology and communications systems supporting the
Company's key business processes, the ability of the Company to import
merchandise from foreign countries without significantly restrictive
tariffs, duties or quotas and the ability of the Company to source,
ship and deliver items from foreign countries to its U.S. distribution
centers at reasonable prices and rates and in a timely fashion. The
Company assumes no obligation to update or revise its forward-looking
statements even if experience or future changes make it clear that any
projected results expressed or implied will not be realized.
    Pier 1 Imports, Inc. is North America's largest specialty retailer
of imported decorative home furnishings and gifts with Pier 1
Imports(R) stores in 49 states, Puerto Rico, Canada, and Mexico; The
Pier(R) stores in the United Kingdom and Ireland; and Pier 1 kids(R)
stores.




    CONTACT: Pier 1 Imports, Inc., Fort Worth
             Cary Turner, 817-252-8400