Smart & Final Inc. reported strong second-quarter earnings Monday as the company said its comparative same-store sales continued to climb despite a bump in business last year during and after the supermarket strike.
The Los Angeles-based food service warehouse chain reported net income of $8.2 million (26 cents per diluted share) for the second quarter ended June 19, compared to $8.3 million (26 cents per diluted share) for the like period a year earlier.
Revenues rose to $484.1 million for the second quarter, up 5.7 percent from $457.8 million a year ago. Same-store sales increased 4.1 percent in the quarter. The company said higher operating, distribution, legal and information technology costs ate into its profits.
The company noted that its same-store sales growth came despite an artificial bump the stores received last year from shoppers who patronized the chain during the strike against the Ralphs, Albertson’s, Vons and Pavilions supermarket chains.
“We are very satisfied with both our sales growth and overall operating ratios in the second quarter,” said president and chief executive Etienne Snollaerts in a written statement. “On a two-year basis over the 2003 to 2005 period, our second quarter comparable store sales have grown by a compounded annual rate of 10 percent.”
The company opened one store during the second quarter in Sunnyvale and four during 2005. In total, the company operated 238 stores at the end of the second quarter.
Smart & Final shares rose 3.5 percent, or 45 cents, to $13.15 on Monday.