Slight sales decline at Ruddick A&E technical textiles
02 Nov '07
4 min read
Operating profit at Harris Teeter was $154.1 million in fiscal 2007 as compared to $127.6 million in fiscal 2006, representing a 20.7% increase.
Operating profit as a percent of sales was 4.67% in fiscal 2007 up from 4.37% in fiscal 2006, an improvement of 30 basis points.
For the fourth quarter ended September 30, 2007, operating profit increased to $40.5 million, or 4.71% of sales, from $30.2 million, or 4.02% of sales, in the prior year period, an increase of 34.3%.
Operating profit was impacted by new store pre-opening costs of $17.9 million (0.54% of sales) and $15.8 million (0.54% of sales) in fiscal 2007 and 2006, respectively.
Pre-opening costs for the fiscal fourth quarter of 2007 and 2006 were $4.4 million (0.51% of sales) and $6.1 million (0.81% of sales), respectively. Pre-opening costs are indicative of the accelerated new store opening schedule.
Harris Teeter's operating profit improved primarily as a result of increased store sales attributed to new store growth, comparable store sales gains driven by a continuous attention to customer service, and through targeted promotional spending and retail pricing programs.
The sales increases along with continued emphasis on operational efficiencies and cost controls have provided the leverage to partially offset the incremental costs associated with Harris Teeter's accelerated new store program (pre-opening costs and incremental start-up costs) and increased associate benefit costs, credit and debit card fees and occupancy costs.
Thomas W. Dickson, Chairman of the Board, President and Chief Executive Officer of Ruddick Corporation stated, “We are pleased with the new store openings, strong comparable store sales growth and operating profit improvements that Harris Teeter realized in fiscal 2007.
Our focus on superior customer service and company-wide execution enabled us to set new standards while growing our market share and customer base. We remain committed to delivering excellent customer service and providing significant value to our customers with each and every shopping experience.”
A&E's sales for fiscal 2007 were $339.8 million as compared to $343.2 million in fiscal 2006. Foreign sales accounted for approximately 54% and 51% of A&E sales in fiscal 2007 and fiscal 2006, respectively.
Sales for the fourth quarter of fiscal 2007 were $82.5 million as compared to $87.4 million in the fourth quarter of fiscal 2006.
marketing@alchempro.com
