Home / Knowledge / News / Textiles / Ruddick Corporation earnings decline in Q2
Ruddick Corporation earnings decline in Q2
04
May '09
During the first half of fiscal 2009, Harris Teeter opened 4 new stores, closed 1 older store (which was replaced by a new store) and completed the major remodeling of 2 stores. Since the second quarter of fiscal 2008, Harris Teeter has opened 13 new stores, while closing 3 stores, for a net addition of 10 stores. Harris Teeter operated 179 stores at March 29, 2009.

Operating profit at Harris Teeter was $45.0 million (4.74% of sales) for the second quarter of fiscal 2009 as compared to $46.4 million (5.19% of sales) in the second quarter of fiscal 2008. For the 26 weeks ended March 29, 2009, operating profit was $89.4 million (4.76% of sales), as compared to $90.6 million (5.06% of sales) in the prior year period.

Operating profit was impacted by new store pre-opening costs of $3.4 million (0.36% of sales) and $4.2 million (0.47% of sales) in the second quarter of fiscal 2009 and fiscal 2008, respectively. Pre-opening costs for the 26-week periods ended March 29, 2009 and March 30, 2008 were $7.4 million (0.39% of sales) and $7.8 million (0.44% of sales), respectively. New store pre-opening costs fluctuate between reporting periods depending on the new store opening schedule.

The decrease in Harris Teeter's operating profit resulted primarily from additional promotional activity designed to provide more value to our customers. The sales increases, along with a continued emphasis on operational efficiencies and cost controls, have provided the leverage to partially offset the additional costs associated with Harris Teeter's increased promotional activity and new store program (pre-opening costs and incremental start-up costs), increased associate benefit costs, credit and debit card fees, supply costs and other occupancy costs.

Thomas W. Dickson, Chairman of the Board, President and Chief Executive Officer of Ruddick Corporation commented that, “These periods of continued economic uncertainty, rising unemployment and declining consumer confidence are changing our customers' spending habits and shopping demands. Therefore, we have been enhancing the overall value we deliver to our customers in response to these changes in customer needs. This quarter we made further investments in promotional price activity to drive customer loyalty and shopping visits.

As a result, according to our customer loyalty data, the number of active households increased 1.99% per comparable store during the quarter, while store brand penetration increased over the prior year quarter. Store brand penetration for the second quarter of fiscal 2009 was 24.80%, an increase of 62 basis points over the prior year. A significant portion of our promotional activity investment was offset by operational efficiencies and cost saving initiatives made at all levels of the organization. As a result, selling, general and administrative costs as a percent of sales decreased to 26.33% for the quarter, as compared to 26.61% for the same period last year. We remain focused on the customer and reacting to their needs, while delivering the quality, value and customer service they have come to expect from us.”

Click here to view more:


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search