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Peet's May Restate

The company cites its past accounting for stock options.

Peet's Coffee & Tea


expects to have to restate some of its past financials to correct its accounting for stock options.

The company said that based on a preliminary review, there doesn't appear to have been any intentional misconduct when it came to option grants.

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Although the probe is ongoing, the board's audit committee has concluded Peet's will most likely need to restate its historical results to record additional noncash stock-based compensation expenses as a result of errors in the measurement dates for some option awards.

Peet's also said that for the third quarter ended Oct. 1, net revenue increased 18.7% to $50.9 million from $42.9 million for the same period a year ago. The coffee seller expects fourth-quarter revenue to rise 20% to 21%, resulting in full-year revenue growth in the same range.

Preliminary earnings for the third quarter were $1.4 million, or 10 cents a share. If not for the option review, the company would expect fourth-quarter earnings from continuing operations of around 25 cents a share.

Looking to fiscal 2007, Peet's is targeting revenue growth of 20% to 23% and earnings, excluding any effects of the stock-option review, of between 70 cents and 73 cents.