Increases in traffic, ticket drive up Cost Plus comps

OAKLAND, Calif. — Increased cutomer traffic and average ticket, helped drive comps at Cost Plus up 7.6% for the fourth quarter of 2011 on top of a 7.7% increase from the fourth quarter of last year. The company reported that net sales for the quarter were $364.3 million, a 6.7% increase compared with $341.6 million for the fourth quarter of last year.

Barry Feld, President and Chief Executive Officer, commented, “Fiscal 2011 marked another year of significant progress for Cost Plus World Market. Growth in revenue was driven by continued improvement in customer count and our first annual increase in the average ticket since 2007. Notably, we saw acceleration in same store sales growth during the second half of fiscal 2011, culminating in a 7.6% comp in the fourth quarter. This momentum has continued into the first quarter of fiscal 2012, reinforcing management’s view that Cost Plus World Market is uniquely positioned to capture market share in a value based economy while steadily increasing bottom line profitability.”

Net income from continuing operations for the fourth quarter of fiscal 2011 was $36.8 million, or $1.56 per diluted share, compared with net income from continuing operations of $28.8 million, or $1.24 per diluted share, for the fourth quarter of fiscal 2010. Net income from continuing operations for fiscal 2011 was $17.7 million, or $0.76 per diluted share, compared to net income from continuing operations of $4.7 million, or $0.21 per diluted share, last year.

Net income for the fourth quarter of fiscal 2011 was $36.5 million, or $1.55 per diluted share, compared with net income of $28.5 million, or $1.23 per diluted share, for the fourth quarter of fiscal 2010. Net income for fiscal 2011 was $16.5 million, or 71 cents per diluted share, compared to net income of $2.9 million, or 13 cents per diluted share, last year.

For the first quarter of fiscal 2012, the company expects net sales in the range of $210 million to $214 million, based on a same-store sales increase in the range of 6% to 8% compared with a same-store sales increase of 5.5% for the first quarter of fiscal 2011.

Net loss from continuing operations for the fourth quarter is expected to be in the range of $1.6 million to $0.8 million, or 7 cents to 3 cents per diluted share, compared to a net loss from continuing operations of $3 million for the first quarter of fiscal 2011.

The company plans to open one new store during the first quarter of fiscal 2012, and no store closures, compared to no new stores and four store closures during the first quarter of fiscal 2011.

For the full year, the company expects net sales in the range of $1 billion to $1.1 billion, based on a same-store sales increase in the range of 5% to 6% compared with a same-store sales increase of 5.4% for fiscal 2011.

The company expects net income from continuing operations for the full year to be in the range of $26 million to $28 million, or $1.07 to $1.12 per diluted share, compared with net income from continuing operations of $17.7 million for fiscal 2011.