Cost Plus Loses $11.3 Million in Second Quarter

August 17, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on August 2006 Cost Plus Inc. today announced financial results for its second quarter ended July 29, 2006 and provided financial guidance for its fiscal third quarter and full fiscal year. (Oakland)

Cost Plus reported second-quarter 2006 sales of $215.3 million, a 6.2 percent increase over the same period last year, but lost $11.3 million in the period ended July 29. The Oakland, Calif.-based retailer had net income of $1.5 million in 2005’s second quarter.

Year-to-date, total revenue stands at $428.2 million, a 6.3 percent increase over the first six months of 2005.

The second-quarter 2006 net loss included $0.17 per diluted share due to the previously announced markdown charge taken to lower retail pricing on certain categories of home furnishings merchandise.

Same store sales for the quarter decreased 3.2 percent compared to a 1.7 percent decrease last year. Year-to-date same store sales were down 3.7 percent compared to a decrease of 1.8 percent last year.

“As we previously announced, both our total and same store sales results were within our guidance range,” said Barry Feld, President and CEO. “While we are not happy with the losses this quarter, we believe we are making the right strategic moves to position the company for long-term growth and success.”

The Company opened two new stores in the second quarter. As of August 17, cost plus operated 276 stores in 34 states, compared to 248 stores in 31 states at the same time last year.

Looking ahead, Cost Plus anticipates a third quarter loss of between $8.3 million and $10.1 million on sales ranging from $213 million and $221 million. The company plans to open 11 new stores in the third quarter and close two.