Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of retailer Pier 1 Imports (NYSE: PIR) climbed as much as 10% in intraday trading Thursday after the company released sales numbers for the second quarter. But gains were tempered when buyer's remorse set in later in the day, and as I'm writing shares are only up about 4%.

So what: Same-store sales climbed 10.8% in the second quarter, contributing to sales of $340 million, above estimates. Better yet, the increase in sales flowed well to the bottom line as gross margins improved to about 59.3%, and expected earnings per share of $0.14 topped estimates by a penny.

Now what: Strong same-store-sales growth is every retailer's dream, and Pier 1 has made all the right moves to make that happen. A focus on smaller items in a down economy has not only helped sales but also margins. I think the forward P/E ratio of 12 shares currently trade at is a nice value for investors willing to bet that retailers will continue to benefit when the economy improves.

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