Exhibit 99.1

                     Pier 1 Imports, Inc. Reports May Sales

     FORT WORTH, Texas--(BUSINESS WIRE)--June 1, 2006--Pier 1 Imports, Inc.
(NYSE:PIR) reported that sales for the four-week period ended May 27, 2006
aggregated $120,884,000 a decrease of 4.3% from $126,291,000 last year, and
comparable store sales declined 6.6%. First quarter and year-to-date sales
amounted to $376,092,000, down 3.6% from $390,314,000 last year, and comparable
store sales declined 6.6%. The Company reiterated first quarter guidance of
$0.24 to $0.28 loss per share and plans to report first quarter results on June
15, 2006.
     Marvin J. Girouard, Pier 1's Chairman and Chief Executive Officer,
commented, "We experienced better customer traffic and sales trends during the
10 days following May 15th, when we first mailed our Pier 1 summer catalog. In
addition, average ticket sales per transaction for the month were positive.
However, Memorial Day's weekend business was disappointing.
     "We continue to carefully monitor and control inventory levels as well as
merchandise margins and expenses. Inventories are expected to be down at least
10% by the end of the first quarter versus a year ago, as we continue to refine
and reposition our merchandise mix."

     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 report on Form 10-K. 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, 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
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 otherwise 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 and Pier 1 kids(R) stores in the
United States.


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