On Aug. 30, home-furnishings retailer Cost Plus
- 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 |
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.
