Ingles Markets reports positive Q2 earnings
Asheville, N.C. — Net sales and net income for Ingles Markets realized a 4% and 38% increase, respectively, during the second quarter ended March 26, the retailer announced Friday.
Ingles reported that second-quarter net sales rose $33.4 million to $870.4 million, while second-quarter net income increased from $5.6 million to $7.7 million.
Excluding gasoline, total sales increased 2.4% and grocery segment comparable-store sales increased 1.9%, compared with the second quarter of the prior fiscal year. The number of customer transactions (excluding gasoline) increased 0.8%, while the comparable average transaction size increased 1.5%, compared with the same quarter last year.
For the first six months of fiscal 2011, net sales rose 3.9% to $1.74 billion and net income increased 32.4% to $15.4 million, compared with the first six months of fiscal 2010.
During the March 2011 six-month period, Ingles opened one new store and three remodeled stores.
Commenting on the financial results, Ingles Markets CEO Robert Ingle II said the second-quarter results were a "testament to the legacy" of the company’s founder, Robert Ingle, who passed away March 6.
Weis expands 2011 cap ex budget
Sunbury, Pa. — Weis Markets on Thursday announced an increase of its 2011 capital expenditure budget by 7% to $110 million. The current budget includes 14 major remodels, two additions and three new/replacement stores.
The company currently is building a replacement unit near Reading, a new unit near Easton and a replacement unit near State College, all in Pennsylvania.
"We’ve significantly increased the pace and tempo of our growth," stated Jonathan Weis, vice chairman of Weis Markets, during the grocer’s annual shareholders meeting. "Over the past two years, we’ve averaged 15 major projects — triple what we were doing a couple of years ago — and our cap ex budget has increased by nearly 35% during this period. We continue to reinvest in our stores, information technology systems and human capital at an unprecedented rate."
Weis Markets president and CEO David Hepfinger also reported that the company would continue to increase its technology investments, which has totaled $25 million in recent years. "While we will continue to make major investments in our store base, our growth will be based on more than just bricks and mortar," Hepfinger said. "Effective Information technology systems are essential to our growth and success. We are determined to give our associates the tools and analytics they need to do better serve the needs of our business and our customers."
In related news, Weis’ board of directors declared a quarterly dividend of 29 cents per share to shareholders of record as of May 9, payable on May 23.
FAO Schwarz, Kidlandia help kids create worlds
NEW YORK – Kidlandia, a company that enables children to create such personalized items as maps, kingdoms and family trees, has opened its first in-store boutique at FAO Schwarz in Midtown Manhattan.
Working with a dedicated FAO Schwarz associate, children and their families can use the Kidlandia Kiosk, which utilizes hardware provided by HP, to create their own personalized kingdom. Customers can select from Kidlandia’s own map designs, or choose a map featuring popular characters from Disney and Nickelodeon. Each map will be designated the land of the child’s name provided, and for further personalization, other names of family and friends can be added, which then become the names of locations on the map.
In addition, as an exclusive to FAO Schwarz, guests can select a map of Manhattan and use it as a way to remember their trip.
The Kidlandia Personalization Boutique will offer 24 x 18-inch Kidlandia fine art prints that will be packaged in a travel-friendly tube for the customer, the company reported.
“2011 will be a monumental year for Kidlandia,” said Kidlandia CEO Brian Backus. “The company was born to give every child their own kingdom to rule. All these exciting new initiatives and products are certain to entertain, educate, and delight kids and parents, and also capture important moments in a highly personalized gift.”
Kidlandia also has an online retail presence with Disney Store, Pottery Barn and Gilte Group. The company said it is developing other relationships with brick-and-mortar retailers.