Store closings double Caribou Coffee's loss

  • Article by: Star Tribune
  • Updated: May 7, 2008 - 8:10 PM

The coffeehouse chain said same-store sales fell 2.3 percent as consumers pulled back on spending.

Caribou Coffee Co. Inc., the Brooklyn Center-based coffeehouse chain, said its first-quarter loss nearly doubled because of the costs of closing 16 underperforming stores during the quarter.

Sales at stores open at least a year, or same-store sales, declined 2.3 percent for the quarter ended March 30. Caribou "was not immune to the pullback in consumer spending," CEO Rosalyn Mallet said in a prepared statement.

The net loss of $6.4 million, or 33 cents per share, compared with a loss of $3.3 million, or 17 cents a share, a year ago. Revenue declined 0.2 percent to $61.8 million.

Expenses associated with store closings and the disposal of assets totaled $2.5 million, compared with $0.7 million a year earlier.

Caribou shares closed Wednesday at $2.66, up 7 cents before the news was released.

STAFF REPORT

  • 1st quarter FY2008, 3/30

    2008 2007 % chg. Revenue $61.8 $61.9 -0.2 Income -6.4 -3.3 -- Earn/share -0.33 -0.17 -- Figures in millions except for earnings per share.
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