Natural and organic food retailer Wild Oats Markets has reported a rise in sales and a move into profit for the second quarter ended 2 July 2005.
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Net sales in the second quarter of 2005 were $284.6m compared with $251.7m in the second quarter of 2004.
The addition of four new stores and two relocated stores in the first half of 2005 helped to drive the increase in net sales, as well as continued strong sales momentum in the company’s Wild Oats Natural Marketplace chain, the company said.
First half 2005 net sales were $562.7m compared to $515.5m in the same period last year.
“We are very pleased with the continued strengthening of our sales momentum throughout the first half of the year,” said Perry D Odak, president and CEO. “Now that we’re into the third quarter and the lapping of the Southern California grocery strike is behind us, we expect our comparable store sales to be solid throughout the remainder of the year. Additionally, our Wild Oats branded products rollout continues to exceed our expectations and is producing very strong sales, which is also contributing to our gross margin improvement.”
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By GlobalDataAs a result of strong sales, a sequential increase in gross margins and a higher store contribution, net income was $0.9m compared with a net loss of $0.3 m in the same period last year. The net loss for the first half of 2005 was $0.2 m, compared with net income of $1.7 m in the first six months of 2004.
“Our ability to better leverage our sales growth into profitability is further evidence that we are beginning to strike the right balance between gross margin, sales and earnings,” said Odak. “Our return to profitability in the second quarter is encouraging, and we will stay focused on growing our margins to deliver continued profitable growth and strong shareholder value.”
