Cost Plus to Pull Out of Eight Markets, Cut 10% of Work Force
Oakland, Calif., Cost Plus, Inc. announced that it will exit eight media markets during fiscal 2008 while closing 18 of its existing stores.
The elimination of these media markets will allow the company to increase its brand presence in outperforming markets.
The company plans to open 17 new stores during the next 12 months in existing states, confirming its previously announced intent not to increase store count in fiscal 2008.
Additionally, the company will reduce its corporate work force by approximately 10% through the consolidation of functions and the automation of certain activities.
Cost Plus anticipates these cost reductions will result in annual savings of approximately $8 million beginning in fiscal year 2008.
eBay reports 27% 4Q revenue increase
SAN JOSE, Calif. eBay Wednesday reported revenue of $2.18 billion for its fourth quarter ended Dec. 31, 2007. This compares to revenue of $1.72 billion for the same period last year, an increase of 27%.
The company reported net income on a GAAP basis of $531 million or 39 cents per diluted share, and non-GAAP net income of $611 million or 45 cents per diluted share, for the quarter. For the same period last year, eBay reported income on a GAAP basis of $346 million, or 25 cents per share, and non-GAAP net income of $431 million, or 31 cents per share.
For the full year, eBay posted $7.67 billion in revenue, net income on a GAAP basis of $348 million or 25 cents per diluted share, and non-GAAP net income of $2.11 billion or $1.53 per diluted share.
“We’re very pleased with the results for the quarter which were strengthened by a solid holiday shopping season,” said eBay president and ceo, Meg Whitman. “We had a remarkably strong year from a financial perspective. We enter 2008 with our most diverse portfolio of ecommerce offerings ever — positioning us to drive long-term growth in the global ecommerce market.”
For the full year 2008, eBay said it expects net revenues in the range of $8.5 billion to $8.75 billion with GAAP earnings per diluted share in the range of $1.27 to $1.31 and non-GAAP earnings per diluted share in the range of $1.63 to $1.67.
For the first quarter 2008, eBay said it expects net revenues in the range of $2 billion to $2.05 billion with GAAP earnings per diluted share in the range of 28 cents to 30 cents and non-GAAP earnings per diluted share in the range of 37 cents to 39 cents.
Video game sales see record growth in ’07
WASHINGTON Computer and video game software sales reached $9.5 billion in 2007, 28% over the previous year, and set a new record according to final data compiled by the NPD Group and announced today by the Entertainment Software Association.
The ESA reported that Halo 3, took in more revenue in its first day of sales than the biggest opening weekend ever for a movie (Spider-Man 3) and the final Harry Potter book’s first day sales, demonstrating the strong growth of the industry.
“The video game industry set the pace over all others in 2007, with record-breaking sales, off-the-charts consumer demand, and innovation reaching from galactic exploration to guitar simulation,” said Michael Gallagher, president and ceo of the ESA. “On average, an astonishing 9 games were sold every second of every day of the year.”
According to the data compiled by the NPD Group, overall U.S. video game console software sales reached $6.6 billion (153.9 million units), computer games sales were $910.7 million (36.4 million units), and a record $2 billion (77.5 million units) in portable software sales. In terms of total units sold, approximately 267.8 million computer and video games were sold in 2007.
Although their has been a lot of controversy surrounding Mature-rated games, according to the NPD Group, the majority of the games sold(56.5%) were rated Everyone 10+. Also, one of the largest genres growing was “Family Entertainment,” which grew 110% (17.2% of all games sold in 2007, up from 9.1% in 2006). “This is clearly an industry strongly rooted in family-friendly entertainment, and not on Mature-rated titles,” noted Gallagher.