Cost Plus’ Earnings Fall on Higher Ad Expenses
Cost Plus Inc. said second-quarter profit fell 55% because of higher advertising-related costs, and the company lowered its guidance for the remainder of the year. The Oakland-based home furnishings retailer said it expected to report full-year earnings of $1.25 to $1.30 a share, down from the $1.26 to $1.36 the company indicated in May. Analysts were looking for full-year earnings of $1.33 a share on sales of $997.3 million.
Second-quarter profit fell to $1.5 million, or 7 cents a share, from $3.3 million, or 15 cents, a year earlier, matching Wall Street’s consensus estimate. The results included an $800,000 advertising expense related to marketing tests the company began in mid-July. Sales rose 7% to $202.8 million while same-store sales fell 1.7%, contrasted with a 3.2% increase in the year-earlier period.