US regional retailer Harris Teeter, set to be taken over by supermarket giant Kroger, has booked a jump in profits.
Net earnings for the three months to 2 July, Harris Teeter’s third quarter, almost doubled from $15.8m to $31.1m. Operating profit was up 69.1% at $55m as Harris Teeter drove down SG&A expenses and lapped last year’s results which included a LIFO charge.
Sales were up 2.9% at $1.19bn. Comparable-store sales increased 1.3% despite the change in when Easter and the holiday period for 4 July have been reported this year compared to last.
Harris Teeter agreed to a $2.44bn takeover bid from Kroger last month. The Harris Teeter banner, seen across states in the south east of the US, will remain. The deal is subject to shareholder and regulatory approval.
For our analysis of Kroger’s planned takeover of Harris Teeter, click here.
