Sales decline at Ruddick's technical textiles subsidiary
02 May '08
3 min read
During the first half of fiscal 2008, Harris Teeter opened 6 new stores, closed 1 older store (which was replaced by a new store) and completed the major remodeling of 3 stores (2 of which were expanded in size). Since the second quarter of fiscal 2007, Harris Teeter has opened 18 new stores, while closing or divesting 5 stores, for a net addition of 13 stores. Harris Teeter operated 169 stores at March 30, 2008.
Operating profit at Harris Teeter increased by 21.3% to $46.4 million (5.19% of sales) for the second quarter of fiscal 2008 as compared to $38.2 million (4.75% of sales) in the prior year period (an improvement of 44 basis points). For the 26 weeks ended March 30, 2008, operating profit was $90.6 million (5.06% of sales), an increase of 23.0% from $73.7 million (4.60% of sales) in the prior year period (an improvement of 46 basis points).
Operating profit was impacted by new store pre-opening costs of $4.2 million (0.47% of sales) and $4.6 million (0.57% of sales) in the second quarter of fiscal 2008 and fiscal 2007, respectively. Pre-opening costs for the 26-week periods ended March 30, 2008 and April 1, 2007 were $7.8 million (0.44% of sales) and $9.6 million (0.60% of sales), respectively. New store pre-opening costs fluctuate between reporting periods depending on the new store opening schedule.
Harris Teeter's operating profit improved primarily as a result of increased store sales attributed to comparable store sales gains driven by our continuous attention to customer service, and through targeted promotional spending and retail pricing programs.
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