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Sewing thread producer A&E sales rise in Q3 2007
01 Aug '08
5 min read
Operating profit was impacted by new store pre-opening costs of $3.7 million (0.40% of sales) and $4.0 million (0.47% of sales) in the third quarter of fiscal 2008 and fiscal 2007, respectively. Pre-opening costs for the 39-week periods ended June 29, 2008 and July 1, 2007 were $11.6 million (0.43% of sales) and $13.5 million (0.55% of sales), respectively. New store pre-opening costs fluctuate between reporting periods depending on the new store opening schedule and market location.
Harris Teeter's operating profit improved primarily as a result of increased sales attributed to comparable store sales gains driven by increased customer counts per location. We believe that our customer base has expanded as a result of providing excellent customer service, targeted promotional spending and innovative retail pricing programs.
The sales increases, along with a continued emphasis on operational efficiencies and overhead cost containment during this time of expansion, have provided the leverage to offset the incremental costs associated with Harris Teeter's new store program (pre-opening costs and incremental start-up costs), increased LIFO charge, fuel and cost of petroleum-based supplies, associate benefit costs, credit and debit card fees, and new store occupancy costs.
Thomas W. Dickson, Chairman of the Board, President and Chief Executive Officer of Ruddick Corporation commented that, "We are pleased to report continued positive comparable store sales gains and operating profit increases at Harris Teeter. Our improved operating profit was achieved while expanding in our key markets by opening 19 new stores in the past 12 months.
We have continued to adjust and refine our merchandising activities in response to the current economic environment and see positive responses from our customers. Our commitment to providing our customers with outstanding product quality and a superior shopping experience, together with our focused promotional strategies have enabled us to continue to profitably grow our market share and our customer base."
A&E sales increased by 0.8% to $87.2 million for the third quarter of fiscal 2008, from $86.6 million in the third quarter of fiscal 2007. For the 39 weeks ended June 29, 2008, sales declined by 2.9% to $249.9 million from $257.3 million in the same period of fiscal 2007. For the 39-week period, foreign sales accounted for approximately 56% of A&E's fiscal 2008 sales as compared to approximately 54% in fiscal 2007.
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Harris Teeter's operating profit improved primarily as a result of increased sales attributed to comparable store sales gains driven by increased customer counts per location. We believe that our customer base has expanded as a result of providing excellent customer service, targeted promotional spending and innovative retail pricing programs.
The sales increases, along with a continued emphasis on operational efficiencies and overhead cost containment during this time of expansion, have provided the leverage to offset the incremental costs associated with Harris Teeter's new store program (pre-opening costs and incremental start-up costs), increased LIFO charge, fuel and cost of petroleum-based supplies, associate benefit costs, credit and debit card fees, and new store occupancy costs.
Thomas W. Dickson, Chairman of the Board, President and Chief Executive Officer of Ruddick Corporation commented that, "We are pleased to report continued positive comparable store sales gains and operating profit increases at Harris Teeter. Our improved operating profit was achieved while expanding in our key markets by opening 19 new stores in the past 12 months.
We have continued to adjust and refine our merchandising activities in response to the current economic environment and see positive responses from our customers. Our commitment to providing our customers with outstanding product quality and a superior shopping experience, together with our focused promotional strategies have enabled us to continue to profitably grow our market share and our customer base."
A&E sales increased by 0.8% to $87.2 million for the third quarter of fiscal 2008, from $86.6 million in the third quarter of fiscal 2007. For the 39 weeks ended June 29, 2008, sales declined by 2.9% to $249.9 million from $257.3 million in the same period of fiscal 2007. For the 39-week period, foreign sales accounted for approximately 56% of A&E's fiscal 2008 sales as compared to approximately 54% in fiscal 2007.
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Ruddick Corporation
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