Cost Plus, Inc. Reports Holiday Sales - Remerchandising Strategy Generates Improving Results

Business Wire,  Jan 10, 2008  

Tags: same-store sales, strategy

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OAKLAND, Calif. -- 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.

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