Caribou 2Q loss narrows as commercial sales grow

Caribou Coffee Co. said Thursday its second-quarter loss narrowed as sales to commercial, franchise and Internet customers grew more than 68 percent.

But coffeehouse sales for the nation's second-largest coffee chain slipped 3.5 percent to nearly $57.3 million from $59.3 million in the three-month period ending in June.

The Brooklyn Center, Minn.-based company said it lost $2.4 million, or 13 cents a share, in the quarter, compared to a loss of nearly $3.9 million, or 20 cents a share, in the same period last year.

Revenue rose 0.5 percent to $63.2 million from $62.8 million.

The results beat the expectations of analysts. According to a poll by Thomson Financial, analysts expected a loss of 23 cents per share on revenue of $60.7 million.

Same-store coffeehouse sales dropped 1.7 percent. Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance because it measures growth at existing stores rather than newly opened ones.

The company said it spent $1.3 million, up from $100,000 in the same quarter last year, to close stores and dispose of assets. The quarter marked the closure of six underperforming company-owned stores.

The increase in sales in Caribou's "other" category was due to higher sales from new and existing commercial customers, royalties and product sales for the 36 franchises opened in the last 12 months.

The earnings announcement came after the market closed Tuesday. Caribou's shares rose 8 cents, or 4.8 percent, to close at $1.74 before the results were announced. The company's shares have traded in a 52-week range of $1.34 to $7.03.