Cost Plus Shrinks Third Quarter Loss

OAKLAND, CA-Cost Plus Inc. said Thursday it shrank its third quarter loss by 7.3% despite a 10.4% decrease in sales and added that same-store sales turned solidly positive last month, the second month of the fourth quarter. The results mark the company’s stabilization and the start of a recovery, company president Barry Field told analysts on a brief conference call. “We’re cautiously optimistic the company has turned the corner,” he said.

The 269-store retailer of “casual home furnishings” reported a net loss from continuing operations of $22.3 million, or $1.01 per share, on $181.9 million in sales, down from a net loss of $24 million or $1.09 per share on $203-million in sales in the same 2008 period. Same-store sales declined 9.1% in the third quarter compared to a 3.4% decline in the same year-earlier period. The fourth quarter is looking up, however, the company, said, citing a 4.9% increase in sames-store sales in November.

Cost Plus is attributing the same-store sales decline to an 8.8% reduction in the average ticket per customer primarily due to lower furniture sales and a relatively flat customer count compared to last year. The positive same-store sales in November are being attributed to the use of layered alternative media campaigns that drove a double digit comp increase in customer count for the month, including a 9.9% increase in California, the company’s largest and most mature market, which has struggled disproportionately during the recession.