Rocky Mountain Chocolate Factory has booked an increase in first-quarter earnings on the back of higher same-store sales.
For the three-months ended 31 May, net income increased 24.6% to US$932,000, primarily due to higher same-store sales at franchised locations, increased factory product sales and increases in franchise fees, royalty income and marketing fees.
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Total revenues increased 14.2% to $7.6m, while same-store sales at franchised retail units increased 0.7% during the quarter. Total factory sales rose 10.9%.
“We are pleased to report a 24.6% increase in earnings during the first quarter of FY2011, despite continued economic uncertainty and only modest gains in customer traffic at retail shopping malls and in other retail venues where our stores are located,” said Bryan Merryman, COO and CFO of Rocky Mountain Chocolate Factory.
“We are encouraged by slight improvements in same-store pounds of products purchased from our factory in Durango by franchisees and double-digit percentage growth in sales to customers outside of our retail store network,” he added.
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