Tops Holding II reports sales growth in Q3 2014
"Our top-line growth reflects the ongoing successful execution of our strategies," commented Frank Curci, Tops President and CEO. "We are building upon our strong market position with unique promotional and marketing programs, particularly those focused on the centre of the store. Additionally, we are driving growth with continued investments that improve the overall shopping experience and new fuel stations that increase customer loyalty. We successfully integrated and rebranded two tuck-in acquisitions during the quarter. Our current acquisition strategy has enabled us to create greater density within our footprint."
Fiscal 2014 Third Quarter Financial Results
Net sales increased 1.4%, or $8.3 million, to $580.7 million in the third quarter of fiscal 2014 from the third quarter of fiscal 2013 (12-week period ended October 5, 2013).
Inside sales of $526.2 million were up 1.1%, or $5.9 million, primarily due to the $4.9 million contribution of two acquired supermarkets and one new supermarket opened since June 2014. Same store sales were slightly positive at 3 basis points.
Gross profit for the third quarter was $165.0 million, or 28.4% of net sales, compared with $163.4 million, or 28.5% of net sales, in the 2013 third quarter. The 10 basis point decrease in margin was the result of LIFO inventory valuation adjustments and mix, as a greater proportion of sales were from lower margin fuel and pharmacy sales. Cost control and other efficiency initiatives realized since the acquisition of the operation of the Company's warehousing and transportation functions in December 2013 have somewhat offset these gross margin effects.
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