Cost Plus Posts Net Loss of $10.3 Million

May 20, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on May 21, 2010 Cost Plus World Market (NASDAQ: CPWM) reported a net loss of $10.3 million for the first quarter ended May 1, that's a $31.3 million improvement from the $41.6 million loss posted in the same quarter last year.

Net sales for the first quarter were $189.2 million, a 2.7 percent increase compared to $184.3 million in the first quarter of fiscal 2009. Same store sales for the first quarter of fiscal 2010 increased 5.6 percent compared to an 8.9 percent decrease during the same period last year. The comparable store sales figure exceeded the high-end of the company's guidance previously reported of 3 percent to 5 percent.

"I am pleased with our first quarter results," said Barry Feld, president and chief executive officer. "During the quarter, we made significant progress towards restoring gross margin by securing pricing concessions with our vendors that allowed for lower retail price points and reduced the need for promotional markdowns. Additionally, we continue to expand the use of alternate layered media and our loyalty program to drive new customer acquisition and shopping frequency which is delivering the necessary results."

Looking ahead to the second quarter, the company expects net sales in the range of $189 million to $192 million, based on a same-store sales increase in the range of 5 percent to 7 percent. The company is projecting a loss form continuing operations before interest and taxes in the range of $7 million to $9 million compared to a loss of $16.8 million for the second quarter of last year.

The company has 263 stores in 30 states.