Oppenheimer analyst Brian Nagel looks upon the modestly better than expected preliminary Q4 results that Pier 1 Imports announced as "another step in the right direction." However, the analyst believes challenges remain for Pier 1 Imports, with top-line trends remaining soft amid intensifying competition in the home furnishings category. While Nagel remains optimistic that the company will once again regain its footing, he remains concerned nearer term that a challenging consumer backdrop could render shares all the more volatile. The analyst reiterates a Perform rating on the stock.