Cost Plus Adds Losses: Fool by Numbers
By Mike Cianciolo
August 31, 2007
On Aug. 30, home-furnishings retailer Cost Plus (Nasdaq: CPWM) released second-quarter earnings (losses) for the period ended Aug. 4.
- Total sales were virtually unchanged from a year ago at $215.2 million, but comps sure took a hit, plummeting 7.6%.
- While management stated that they have never been more confident in their turnaround strategy, falling margins suggest that their efforts have yet to be proven successful.
- The company's debt load increased significantly from a sale-leaseback transaction.
- Cost Plus and its rival Pier One Imports (NYSE: PIR) have been given one-star ratings (out of a possible five) in Motley Fool CAPS. Competitor Bed Bath & Beyond (Nasdaq: BBBY) fares a bit better, earning three stars.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007
|
Q2 2006
|
Change
|
|
Sales
|
$215.2
|
$215.3
|
(0.04%)
|
|
Net Profit
|
($18.0)
|
($14.2)
|
N/A
|
|
EPS
|
($0.81)
|
($0.64)
|
N/A
|
|
Diluted Shares
|
22.1
|
22.1
|
0.1%
|
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007
|
Q2 2006
|
Change*
|
|
Gross Margin
|
24.3%
|
24.9%
|
(0.7)
|
|
Operating Margin
|
(12.3%)
|
(10%)
|
N/A
|
|
Net Margin
|
(8.4%)
|
(6.6%)
|
N/A
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q2 2007
|
Q2 2006
|
Change
|
|
Cash + ST Invest.
|
$3.2
|
$2.9
|
9.9%
|
|
Inventory
|
$263.6
|
$261.9
|
0.7%
|
|
Liabilities
|
Q2 2007
|
Q2 2006
|
Change
|
|
Accounts Payable
|
$54.1
|
$61.1
|
(11.5%)
|
|
Long-Term Debt
|
$114.8
|
$67.8
|
69.4%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
Not provided. Boo! An earnings release without a cash flow statement is like a house without furniture.
Last quarter at Cost Plus:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Bed Bath and Beyond is an
Inside Value
and a
Stock Advisor
recommendation.
At the time of publication, Fool contributor Mike Cianciolo held no position in any of the companies in this article. The Fool has a disclosure policy.
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