Smart & Final plans new Extra! stores
Smart & Final says it's focused on growth and expansion of its new Extra! format as the retailer posts another quarter of impressive same store sales.
For the second quarter ended June 14, Smart & Final said net sales increased 9.3% to $905.1 million. Same store sales incraesed3.5%. The company had net income of $11.0 million, or $0.14 per diluted share. And adjustedEBITDA increased 6.7% to $50.7 million.
"Smart & Final Stores had strong total sales growth of over 9% in the second quarter, led by solid growth in comparable store sales and the contribution from new stores," said Dave Hirz, President and Chief Executive Officer. "While our average transaction size was impacted by deflation in a few product categories during the second quarter, gross margin rates remained strong and comparable transaction counts grew in both our Smart & Final and Cash & Carry store banners. We continued our robust store growth with 13 Extra! format stores opened through the second quarter of 2015."
Hirz continued, "As we expand, we have maintained a consistent focus on value – convenience – and quality – themes that continue to resonate with both our household and business customers. We are on track to deliver our planned store growth for 2015 and advance our exciting merchandising and branding initiatives in the Smart & Final banner, and continue new store growth in the Cash & Carry banner."
Smart & Final plans to open 12 new stores and complete several renovations in the second half of the fiscal year. This includes six new Smart & Final Extra stores, one new Cash & Carry store, and three conversions of legacy Smart & Final stores to the Extra format, including one store relocation, in the third quarter. In the fourth quarter, Smart & Final plans to open five additional new Smart & Final Extra stores and one new Cash & Carry store, as well as complete two additional conversions of legacy Smart & Final stores to the Extra format, including one store relocation.
In the second quarter, net sales were $905.1 million, a 9% increase as compared to $828.1 million in the same period of 2014. Net sales growth was driven by a 3.5% increase in same-store sales and from the net sales contribution of new stores.