Cost Plus World Market has reported gains in the second quarter with help from home products that the retailer has added to enhance and complement its furniture assortment.
Second quarter fiscal 2010 net sales were $192.4 million, a 4.9% increase from the second quarter of fiscal 2009. Comparable store sales for the period increased 6.5%. Customer count for the second quarter of fiscal 2010 increased 5.8% and average ticket increased 0.7%. Year-to-date, net sales were $381.6 million, a 3.8% increase from the same period last year, and comps increased 6.1%.
Net loss for the second quarter was $7 million, or 32 cents per diluted share, versus $20.8 million, or 94 cents per diluted share, in last year’s period. Net loss for the first six months was $17.3 million, or 78 cents per diluted share, versus $62.3 million, or $2.82 per diluted share, in the first half of fiscal 2009.
Merchandise margins continued to improve in the quarter with non-furniture home categories leading advances. Additionally, Cost Plus was able to decrease markdown activity across most product segments. The company has conducted more multi-layered media marketing, including social network efforts, and established a loyalty program to drive customer acquisition and shopping frequency. Outdoor furnishings also helped drive Cost Plus gains in the quarter.
“We continue to be a one-stop destination for outdoor entertaining and had another very successful outdoor season,” said CEO Barry Feld in a conference call. “Our core competency in outdoor furniture drives traffic and ticket during a time period when other retailers are liquidating summer merchandise to make room for back-to-school.”