Cost Plus Revises Fourth Quarter Guidance.OAKLAND, Calif. -- Cost Plus, Inc. (Nasdaq:CPWM CPWM Certified Public Works Manager (New Jersey state license) CPWM Controlled Pulsewidth Modulation ) today revised its estimates for sales and earnings for the fourth quarter of fiscal 2004. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of are now expected to be down by approximately 1.5% versus prior guidance of a 2.5% increase from the fourth quarter of fiscal 2003. Total fourth quarter sales should be approximately $342 million, an increase of 10%. Prior guidance called for total sales of $356 million. The Company noted that customer traffic, as gauged by transaction count, had been below its expectations until Christmas. Since then, the trend has been decidedly positive. Sales were weak throughout the month of November. Although same store sales for December moved into positive territory, the improvement was not sufficient to fully offset the November weakness. Post-Holiday comparable store sales results have been positive, with growth in gift card redemptions contributing to the increase. The Company now estimates earnings for the fourth quarter will be approximately $1.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share versus prior guidance of $1.32 per diluted share. The Company indicated that in addition to the impact of the same store sales shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. , a larger than anticipated shift in sales mix sales mix See product mix. to lower margin consumables and additional markdowns of seasonal inventories remaining after the Holidays are contributing to lower estimated net earnings. In an unrelated matter, the Company indicated that the natural disaster in Asia has not impacted its shipments nor does it appear to have had a significant effect on the manufacturers from whom it purchases products in that area of the world. The Company's fourth quarter ends Saturday, January 29, 2005, and final quarterly sales results will be announced Thursday, February 3, 2005. The above statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated fourth quarter sales and earnings are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " which are based on current expectations and are subject to various risks and uncertainties which could cause actual results to differ materially from those forecasted. Such risk factors and uncertainties include, but are not limited to, customer traffic and sales volume for the remainder of January 2005; the timing and rate of gift card redemptions; adverse winter weather conditions; international conflicts; and delays in the flow of merchandise to stores. |
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