Big Minus at Cost Plus

Cost Plus (CPWM Quote - Cramer on CPWM - Stock Picks) posted a second-quarter loss and guided to a hefty deficit for the third quarter as well.

The Oakland, Calif., retailer lost $11.3 million, or 51 cents a share, for the quarter ended July 29. That reverses a year-ago profit of $1.5 million, or 7 cents a share. Sales rose to $215 million from $203 million a year earlier.

The latest-quarter loss includes a 17-cent-a-share markdown charge taken to lower retail pricing on certain categories of home-furnishings merchandise. Analysts were looking for a 3-cent profit on sales of $223 million.

"While we are not happy with the losses this quarter, we believe we are making the right strategic moves to position the company for long-term growth and success," the company said.

Cost Plus expects to lose about 42 cents a share for the third quarter on sales of about $217 million. For the year, Cost Plus expects to make around 30 cents a share as same-store sales are expected to drop as much as 3%. Analysts were looking for a 91-cent profit for the year.

Shares rose 39 cents to $13.21 ahead of the news Thursday.