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Ruddick reports fiscal 2010 results
09 Nov '10
5 min read
During fiscal 2010, Harris Teeter opened 13 new stores (2 of which replaced existing stores) and closed 3 stores, for a net addition of 10 stores. Harris Teeter operated 199 stores at the end of fiscal 2010. Retail square footage increased by 6.4% in fiscal 2010, as compared to an increase of 8.7% in fiscal 2009.
Operating profit at Harris Teeter for fiscal 2010 increased 3.4% to $181.6 million (4.43% of sales) from $175.6 million (4.59% of sales) in fiscal 2009. Operating profit for the fourth quarter of fiscal 2010 increased by 12.9 % to $49.1 million (4.43% of sales) from $43.5 million (4.41% of sales) in the prior year period. Operating profit was impacted by new store pre-opening costs of $8.4 million (0.20% of sales) and $14.4 million (0.37% of sales) in fiscal 2010 and 2009, respectively. Pre-opening costs for the fiscal fourth quarter of 2010 and 2009 were $1.8 million (0.16% of sales) and $2.8 million (0.29% of sales), respectively. New store pre-opening costs fluctuate between reporting periods depending on the new store opening schedule and market location.
The increase in Harris Teeter's operating profit resulted primarily from Harris Teeter's increased sales and a continued emphasis on operational efficiencies and cost controls. Savings realized through these efforts have been utilized to fund increased promotional activity designed to provide additional value to our customers and offset increased occupancy costs, pension expense and increased debit and credit card fees.
Thomas W. Dickson, Chairman of the Board, President and Chief Executive Officer of Ruddick Corporation stated, "Harris Teeter's fiscal 2010 operating profit of $181.6 million is the highest operating profit in our history. This accomplishment was realized during a period of heightened competitive activity and economic uncertainty that has led to unprecedented low levels of consumer confidence.
“During fiscal 2010, we drove customer shopping visits and loyalty through investments in our lower everyday prices and promotional activity. As a result, our customer loyalty data indicates that the number of active households increased by 1.29% per comparable store in fiscal 2010 and the total number of customer transactions and number of items sold also increased. A portion of our investment in pricing has been offset by greater vendor funding support, improved operational efficiencies and cost saving initiatives across all areas of the business.
“Our cost saving initiatives resulted in a reduction of 46 basis points in selling, general and administrative expenses as a percent of sales on a year over year basis. During the fourth quarter of fiscal 2010, Harris Teeter's SG&A margin declined 9 basis points to 25.26% from 25.35% in the same period last year."
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Operating profit at Harris Teeter for fiscal 2010 increased 3.4% to $181.6 million (4.43% of sales) from $175.6 million (4.59% of sales) in fiscal 2009. Operating profit for the fourth quarter of fiscal 2010 increased by 12.9 % to $49.1 million (4.43% of sales) from $43.5 million (4.41% of sales) in the prior year period. Operating profit was impacted by new store pre-opening costs of $8.4 million (0.20% of sales) and $14.4 million (0.37% of sales) in fiscal 2010 and 2009, respectively. Pre-opening costs for the fiscal fourth quarter of 2010 and 2009 were $1.8 million (0.16% of sales) and $2.8 million (0.29% of sales), respectively. New store pre-opening costs fluctuate between reporting periods depending on the new store opening schedule and market location.
The increase in Harris Teeter's operating profit resulted primarily from Harris Teeter's increased sales and a continued emphasis on operational efficiencies and cost controls. Savings realized through these efforts have been utilized to fund increased promotional activity designed to provide additional value to our customers and offset increased occupancy costs, pension expense and increased debit and credit card fees.
Thomas W. Dickson, Chairman of the Board, President and Chief Executive Officer of Ruddick Corporation stated, "Harris Teeter's fiscal 2010 operating profit of $181.6 million is the highest operating profit in our history. This accomplishment was realized during a period of heightened competitive activity and economic uncertainty that has led to unprecedented low levels of consumer confidence.
“During fiscal 2010, we drove customer shopping visits and loyalty through investments in our lower everyday prices and promotional activity. As a result, our customer loyalty data indicates that the number of active households increased by 1.29% per comparable store in fiscal 2010 and the total number of customer transactions and number of items sold also increased. A portion of our investment in pricing has been offset by greater vendor funding support, improved operational efficiencies and cost saving initiatives across all areas of the business.
“Our cost saving initiatives resulted in a reduction of 46 basis points in selling, general and administrative expenses as a percent of sales on a year over year basis. During the fourth quarter of fiscal 2010, Harris Teeter's SG&A margin declined 9 basis points to 25.26% from 25.35% in the same period last year."
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Ruddick Corporation
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