Cost Plus Sees Weak Q4

OAKLAND, CA-Cost Plus Inc., which specializes in imported goods from a diverse number of countries of origin, posted a relatively weak fourth fiscal quarter, but a somewhat stronger fiscal 2004, ended Jan. 29. Net sales during Q4 2004 increased 9.7% to $342.9 million from $312.6 million in Q4 2003, but same-store sales for the quarter decreased 1.3% compared to the same period a year ago. For the full year, net sales were $908.6 million, a 13.4% increase from the prior year, with same-store sales increasing 0.9% over fiscal 2003.

“Our fourth quarter proved to be difficult, but there were bright spots,” said Theresa Strickland, EVP of merchandising and marketing during Thursday’s earnings conference call. “After a difficult third quarter in the consumables business, and both consumables and our seasonal businesses performed better than expected. For the first time in several years, we ended the season with positive comps in our Christmas shops.”

The company’s Q4 numbers were released about a week after Murray Dashe stepped down as Cost Plus’ chairman, CEO and president after seven years in those positions, with plans to retire. The company’s board of directors then named Danny Gurr, a director of the company since 1995, interim president and COO, and Fredric M. Roberts, a director since 1999, was named non-executive chairman of the board. A search for a new CEO is now under way.