On May 18, 2006, Cost Plus (NASDAQ:CPWM) released Q1 2006 earnings for the period ended April 29.

  • Margins declined because of lower-than-expected sales, increased sales of consumable goods, and higher markdowns on furniture and textiles.
  • Inventory balances remain high; they improved year over year.
  • Long-term debt increased 14.8%, but the press release also shows a decline in short-term borrowings. Overall, the change is slightly positive.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2006

Q1 2005

Change

Sales

$217,200

$212,964

$200,023

6.5%

Net Profit

--

($4,792)

($138)

N/A

EPS

($0.16)

($0.22)

($0.01)

N/A

Diluted Shares

22,062

21,914

0.7%



Get back to basics with a look at the income statement.

Margin Checkup

Q1 2006

Q1 2005

Change*

Gross Margin

29.73%

33.36%

(3.63)

Operating Margin

(3.25%)

0.25%

(3.5)

Net Margin

(2.25%)

(0.07%)

(2.18)

* Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2006

Q1 2005

Change

Cash + ST Invest.

$15,330

$3,759

307.8%

Other Current Assets

$25,043

$14,498

72.7%

Inventory

$251,092

$268,492

(6.5%)



Liabilities

Q1 2006

Q1 2005

Change

Accounts Payable

$45,474

$50,377

(9.7%)

Long-Term Debt

$62,144

$54,121

14.8%



Cash Flow Highlights

Not provided by the company.

Find out why Fools always follow the money.

Related Companies:

  • Pier 1 Imports (NYSE:PIR)
  • Bed Bath and Beyond (NASDAQ:BBBY)
  • Williams-Sonoma (NYSE:WSM)
  • Target (NYSE:TGT)
  • Dollar General (NYSE:DG)
  • TJX Companies (NYSE:TJX)

Related Foolishness:

Bed Bath and Beyond is a Motley Fool Stock Advisor recommendation. Take the newsletter dedicated to the stocks at the very top of David and Tom Gardner's list for a 30-day free trial.

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.

At the time of publication, Nathan Parmelee had positions in Kenneth Cole Productions. Fool rules are here.