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Smart & Final Stores Inc. posted strong sales gains in both the second quarter and full year ended June 14, driven primarily by growth in comparable store sales.
For Q2, the Commerce, Calif.-based grocer delivered $905.1 million in net sales, a 9.3 percent increase from the same period in 2014, and 3.5 percent growth in comps.
Net income was relatively flat for the grocer, with $11 million in Q2 compared to $11.1 million in the same period of 2014. Net income per diluted share was $0.14 compared to $0.19 in the same period last year.
“Smart & Final Stores had strong total sales growth of over 9 [percent] in the second quarter, led by solid growth in comparable store sales and the contribution from new stores,” said Dave Hirz, president/CEO.
Hirz added, "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."
Smart & Final's full year performance posted $1.7 billion in net sales, an increase of 10.5 percent compared to last year, with 4.8 percent in comparable store sales.
Net income came in at $15.9 million, an increase of 16.9 percent; net income per diluted share was $0.21, compared to $0.23 for the same period in 2014.
"We saw growth in comparable transaction counts in both our Smart & Final and Cash & Carry banner stores, showing that our focus on value, convenience and quality is resonating with both households and businesses alike," Scott Drew, executive VP of Smart & Final Banner Operations, told Progressive Grocer. "It’s a great time to be a part of the Smart & Final team and we appreciate all that our associates do to make Smart & Final Stores successful.”
In terms of growth in Q2, the company opened five new Smart & Final Extra! stores and completed four conversions of Smart & Final stores to the Smart & Final Extra! format.
Looking forward to Q3, the company plans to open six Smart & Final Extra! stores, complete three conversions, including one store relocation, and open one new Cash & Carry store. In Q4, five Smart & Final Extra! stores will be completed, as well as two conversions, including one store relocation and one new Cash & Carry store.
"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," Hirz concluded.