US grocery retailer Harris Teeter has booked a mix set of figures in the third quarter, hit by its recent M&A activity.
In the three months to the end of June, net earnings amounted to US$15.8m, a decline on $32.1m reported a year earlier. The company cited a $3.5m charge linked to its sale of industrial thread manufacturing company American & Efird for the drop, and $10.4m in costs from the acquisition of stores from Lowe’s.
Go deeper with GlobalData
Operating profit were $32.5m, compared to $48.2m a year earlier. Without the cost from the Lowe’s deal, operating profit would have been $48.2m.
Sales reached $1.15bn, a 4.6% increase on the comparable period last year, driven an increase in comparable-store sales and sales from new stores.
“As we reported, the non-cash impairment charges and additional incremental expenses we incurred in this transaction reduced the company’s operating profit by $22.3 million and decreased the operating margin by 194 basis points in the third quarter of fiscal 2012. Without these additional costs, our operating profit margin for the quarter would have increased by 38 basis points compared to last year,” chairman and CEO Thomas Dickson said.
See Also:
“During the quarter we experienced increased unit sales on a comparable-store basis and have continued this positive trend into the fourth quarter. In addition, our store brand penetration on both a unit and sales dollar basis improved over the prior year.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
