CPWM $2.2 will report $.60 - $.70 EPS for Q4
Fourth Quarter Outlook — Continuing Operations
For the fourth quarter of fiscal 2009, the Company expects net sales in the range of $314 million to $330 million, based on same store sales in the range of a 4% decrease to a 1% increase. The Company is expecting a year-over-year decrease in January sales since it will not repeat the inventory clearance event that occurred in January last year that generated strong temporary traffic increases. Gross profit margin for the fourth quarter is expected to be 330 to 380 basis points higher than last year. On a normalized basis, gross profit margin is expected to increase 70 to 120 basis points over last year when the impact of the $9 million charge related to the inventory clearance event is excluded.
For the fourth quarter of fiscal 2009, the Company is projecting income from continuing operations before interest and taxes in the range of $8 million to $14 million versus a loss of $10.9 million last year. Depreciation and net interest expense are projected to be $6 million and $3 million respectively, resulting in EBITDA in the range of $14 million to $20 million versus a negative $3 million EBITDA in the fourth quarter of last year.
Additionally, the Company will record a tax receivable on the balance sheet in the fourth quarter for the estimated $12 million tax refund. Due to the full valuation allowance, the benefit of the income tax refund will have a positive impact on net income in the fourth quarter which is not included in the estimated guidance range of $8 million to $14 million referred to above.
Cost Plus, Inc. is a leading specialty retailer of casual home living and entertaining products. As of December 3, 2009, the Company operated 269 stores in 30 states versus 278 stores (after adjusting for the 18 stores now classified as discontinued operations) in 30 states at the end of third quarter of fiscal 2008.
