Cost Plus World Market sales up 6.8% in year; profits plunge 33%

Oakland, Calif.— Top 100 specialty chain Cost Plus World Market said sales rose 6.8% in its year ended Jan. 28, but net income plunged 33% due to increased expenses and several one-time charges.

The company, which operates 270 World Market and Cost Plus World Market stores in 30 states,

Sales totaled $970.4 million for fiscal 2005, compared with $908.6 million the previous year. Net income was $20.2 million, or 92 cents per share, compared with $30.2 million, or $1.35 per share, a year earlier.

The 2005 figures include pretax charges of $3.3 million stemming from the departure of the company's former CEO and the closing of five stores.

Fourth-quarter numbers followed a similar pattern, as sales rose 7% to $366.9 million and same-store sales dropped 2.1%. Net income was off 8.3% to $21.5 million, or 97 cents per share.

"Although we are disappointed with our same-store sales performance for the fourth quarter, we are pleased with the initial results of key operating and marketing initiatives that contributed to strong customer count and same-store sales performance in January," said President and CEO Barry Feld.

For the first quarter, the retailer is projecting a same-store sales decrease of as much as 3%, but believes the figure will improve throughout the year. The company, in fact, is projecting a same-store increase of as much as 2% for the full year.

Cost Plus World Market said it plans a net gain of 20 stores in fiscal 2006. It finished fiscal 2005 with a net gain of 30 stores.