Neat stuff store ShopKo Stores Inc presented financial results for the second quarter ended July 30, 2005. Net income for the second quarter of 2005 was $11.5 million compared with net income of $8.3 million last year. Earnings per diluted share were $0.38 compared with earnings per diluted share of $0.28 last year.
Consolidated sales decreased 5.0 percent to $737.0 million in the second quarter of 2005 compared with $775.6 million for the comparable period last year. Consolidated comparable store sales decreased 5.6 percent.
The second quarter 2005 results benefited from a number of factors including:
- continued focus on improving the mix between profitable sales and promotional activity, resulting in higher gross margin
- reduction in interest expense of $1.6 million due to lower debt levels
- decrease of $1.7 million in expenses associated with reduced store remodeling activity in 2005 compared with a year ago
- $2.3 million gain on the sale of three Colorado stores partially offset by $1.7 million of merger related costs.
Debt levels at period end declined $142 million from the comparable 2004 period due to reduced inventory levels and higher cash flows from operations, use of proceeds from the sale of the three Colorado stores, and reduced capital expenditures.
Capital expenditures for the second quarter of 2005 were $5.5 million compared with $21.0 million last year. In the first half of fiscal 2005, capital expenditures were $8.3 million compared with $31.4 million for the same period last year.
marketing@alchempro.com
