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Caribou Coffee reports $6M net loss
May 7, 2008
MINNEAPOLIS — Caribou Coffee Co. Inc. has reported financial results for the first quarter of 2008 ended March 30.
Comparable-store sales decreased 2.3 percent for the quarter, as compared to the same period last year.
Total net sales decreased 0.2 percent to $61.8 million for the quarter, down slightly from $61.9 million for the quarter ended April 1, 2007.
Coffeehouse sales were $56.6 million in fiscal first quarter 2008, a decrease of 2.5 percent from the same period last year. Other net sales were $5.1 million in Q1 '08, an increase of 36 percent over Q1 '07. The increase was due to higher sales from new and existing commercial customers, royalties and product sales from 30 franchise coffeehouses opened during last 12 months, according to the company.
The company's net loss for the first quarter of 2008 was $6.4 million, compared with a net loss of $3.3 million for the same period in 2007. The increase in net loss is attributable to closing expense and the disposal of asset costs associated with the closure of 16 coffeehouses and some one-time expenses associated with right-sizing the business.
"Although we are operating in a difficult macro environment, we are making progress in improving the overall health of the company," said Rosalyn (Roz) Mallet, Caribou's CEO. "We are doing this by closing underperforming units and focusing on other initiatives, including labor management, to improve store level profitability."
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