From Home Furnishing Business
Cost Plus Postpones Earnings Release
By Home Furnishings Business in Casual Furniture on April 2007
Casual retailer Cost Plus, Inc., Oakland, Calif., announced today that it will reschedule its fourth-quarter 2006 earnings release and conference call in order to complete its review of certain inventory accounting practices that will affect year-end inventory reserve balances and cost of goods sold.
The company will announce the date of its earnings release and conference call at a later date.
After making significant changes in our accounting organization this past year, we thought it prudent to thoroughly examine our past procedures and practices for year-end reconciliations and adjustments, especially as they related to inventory, said Barry Feld, president and CEO. During the year-end closing process, we discovered discrepancies in certain inventory reconciliations. We are in the process of completing an extensive internal analysis of the discrepancies.
Feld added that the differences related to the inventory reconciliation could result in a restatement of the financial statements for fiscal years 2002 through 2005 as well as the first three fiscal quarters of 2006.