Cost Plus, Inc. Reports Holiday Sales - Remerchandising Strategy Generates Improving Results
OAKLAND, Calif.--(Business Wire)--Cost Plus, Inc. (Nasdaq: CPWM) announced today its sales results
for the nine-week holiday period. Net sales for the nine-week period
ended January 5, 2008 were $300.7 million, compared to $301.6 million
for the comparable nine-week period in fiscal 2006. Same store sales
for the nine-week holiday period decreased 3.4% compared to a 6.9%
decrease for the same period last year, delivering the Company's best
holiday same store sales performance since fiscal 2004 and showing the
first signs of improvement in the direction of same store sales trend.
Importantly, the Company did not repeat the heavy coupon activity
from the prior year holiday period but instead re-introduced its
everyday value pricing strategy and traditional holiday merchandise to
increase units per transaction. Receipts from holiday sales enabled
the Company to pay down the entire balance under its $200 million
revolving line of credit by the end of December, providing the Company
with substantial financial flexibility for 2008.
President and Chief Executive Officer Barry Feld commented, "We
are satisfied with the results of the holiday season thus far, and we
are pleased with the sell-through of holiday merchandise. January
remains an important month in the quarter for gift card redemption,
post-holiday clearance and our annual furniture event. Customer
response to our remerchandising strategy has been positive and we look
forward to the new spring assortments arriving in February."
Cost Plus, Inc. is a leading specialty retailer of casual home
living and entertaining products. As of January 9, 2008, the Company
operates 299 stores in 34 states.
This release contains "forward-looking statements" that are based
on current expectations and are subject to various risks and
uncertainties, which could cause actual results to differ materially
from those forecasted. Such risk factors include, but are not limited
to: changes in economic conditions that affect consumer spending;
changes in the valuation of Company assets; changes in the competitive
environment; interruptions in the flow of merchandise; changes in the
cost of goods and services purchased including fuel, transportation
and insurance; a material unfavorable outcome with respect to
litigation, claims and assessments; the effects associated with
terrorist acts; changes in accounting rules and regulations; and
accounting adjustments identified in closing the Company's books.
Please refer to documents on file with the Securities and Exchange
Commission for a more detailed discussion of the Company's risk
factors. The Company does not undertake any obligation to update its
forward-looking statements.
Cost Plus, Inc.
Jane Baughman, 510-808-9119
Copyright Business Wire 2008
