Cost Plus reports smaller loss in 2Q

OAKLAND, Calif. – Specialty home retailer Cost Plus Inc. said Thursday its fiscal second-quarter loss narrowed as the company cut costs to offset lower sales of big-ticket items such as living room and dining room furniture.

Its loss for the quarter that ended Aug. 1 narrowed to $20.8 million, or 94 cents per share, from $26.6 million, or $1.21 per share, in the same period a year earlier.

Revenue fell 13 percent to $183.4 million from $210.7 million last year.

Sales in Cost Plus stores open at least one year, a key retail metric known as same-store sales, fell 10.9 percent during the quarter. The company had forecast a same-store sales decline between 9.5 percent and 14.5 percent.

It said same-store sales fell because the average ticket per customer fell 8 percent — mainly due to lower dining and living furniture sales — and because 3.4 percent fewer shoppers made it to the checkout.

Retailers have reduced their inventory of more expensive items such as furniture to cut costs amid the recession.

Selling, general and administrative expenses fell 15 percent because of other cost-cutting measures such as closing stores, which lowered payroll, and trims in advertising and other expenses.

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