Cost Plus Slashes Loss in First Quarter
OAKLAND, Calif.-Cost Plus--which is set to become part of the Bed Bath & Beyond family during the second quarter--cut down its first quarter net loss to $74,000 from a net loss of $3.4 million in the first quarter of last year.
Last week, Bed Bath & Beyond announced that it had reached an agreement to purchase Cost Plus in an all-cash deal valued in the neighborhood of $500 million. When it's finalized, Cost Plus' portfolio of 259 stores in 30 states will join Bed Bath & Beyond.
Cost Plus' net sales in the first quarter, which ended on April 28, rose 7.4 percent to $214.6 million, which included a 7.9 percent increase in same-store sales. Gross margin improved 30 basis points to 32 percent. Selling, general and administrative expenses were up 3.5 percent in dollars but down 120 basis points as a percentage of sales, to 30.4 percent.
Cost Plus said it expects second-quarter sales to range between $210 million and $216 million, with a same-store sales jump of from 6 to 8 percent. For the fiscal year, the company is projecting net sales to total between $1 billion and $1.1 billion, with same-store sales rising from 5 to 6 percent.