Durango, Colo. Rocky Mountain Chocolate Factory said Tuesday its net earnings for the second quarter ended Aug.31 increased 5.9% to $882,000, compared with the year-ago period.
The company, which franchises gourmet chocolate and confection stores and manufactures premium chocolates and other confectionery products, also reported total revenues for the quarter decreased 3.2% to $6.1 million. Same-store sales at franchised retail outlets dropped 4.8%.
Retail sales increased 43.9% from last year's second quarter to $670,900, reflecting an increase in the average number of company-owned stores in operation from four in the second quarter of fiscal year 2009 to seven in the second quarter of fiscal year 2010.
"We are pleased to report a modest increase in our second quarter earnings, which was a result of lower general and administrative costs, primarily due to decreased professional fees, when compared with the year-earlier quarter," noted Bryan Merryman, COO of Rocky Mountain Chocolate Factory.
"While our franchisees continue to wrestle with a weak economy and lower customer traffic in most of our retail venues, the 4.8% decline in second quarter same-store sales at our franchised locations was not as great as in either of the previous two quarters," added Merryman.