Cost Plus World Market sales up 6.8% in year; profits plunge 33%
By Furniture Today Staff -- Furniture Today, April 10, 2006
Oakland, Calif. — Top 100 specialty chain Cost Plus World Market said sales rose 6.8% in its year ended Jan. 28, but net income plunged 33% due to increased expenses and several one-time charges.
The company, which operates 270 World Market and Cost Plus World Market stores in 30 states, said same-store sales decreased 2.6% in the year, compared with a 0.9% increase in fiscal 2004.
Sales totaled $970.4 million for fiscal 2005, compared with $908.6 million the previous year. Net income was $20.2 million, or 92 cents per share, compared with $30.2 million, or $1.35 per share, a year earlier.
The 2005 figures include pretax charges of $3.3 million stemming from the departure of the company's former CEO and the closing of five stores.
Fourth-quarter numbers followed a similar pattern, as sales rose 7% to $366.9 million and same-store sales dropped 2.1%. Net income was off 8.3% to $21.5 million, or 97 cents per share.
"Although we are disappointed with our same-store sales performance for the fourth quarter, we are pleased with the initial results of key operating and marketing initiatives that contributed to strong customer count and same-store sales performance in January," said President and CEO Barry Feld.
For the first quarter, the retailer is projecting a same-store sales decrease of as much as 3%, but believes the figure will improve throughout the year. The company, in fact, is projecting a same-store increase of as much as 2% for the full year.
Cost Plus World Market said it plans a net gain of 20 stores in fiscal 2006. It finished fiscal 2005 with a net gain of 30 stores.
| Quarter ended 1/28 | 2006 | 2005 | Change |
|---|---|---|---|
| Sales | $366,973,000 | $342,941,000 | 7.0% |
| Operating income | 38,039,000 | 40,107,000 | (5.2%) |
| Net income | 21,513,000 | 23,456,000 | (8.3%) |
| Earnings per share | 0.97 | 1.06 | (8.5%) |
| Year ended 1/28 | 2006 | 2005 | Change |
| Sales | $970,441,000 | $908,560,000 | 6.8% |
| Operating income | 45,702,000 | 58,980,000 | (22.5%) |
| Net income | 20,233,000 | 30,221,000 | (33.0%) |
| Earnings per share | 0.92 | 1.35 | (31.9%) |
