Publix’s Q2 earnings rise amid lower tax rate and new accounting rule
Publix Super Market’s sales and earnings rose in the second quarter despite a calendar shift in the timing of the Easter calendar.
The grocer’s net income rose to 24.5% to $616.2 million, or 84 cents per share, from $495.1 million, or 65 cents per share, in the year-ago period. Publix noted that earnings were boosted by a decrease in the federal statutory income tax rate, from 35% to 21%, when the new tax law went into effect this year, as well as by a new accounting standard.
Sales rose 4% to $8.4 billion. Comparable-store sales rose 1.7%, with a negative impact of 1.2% from the Easter holiday being in the first quarter in 2018 versus in the second quarter last year, the company noted.
As of Aug. 1, Publix’s stock price rose from $41.75 per share to $42.55 per share. (The company’s stock is not publicly traded and is sold only to current associates and members of its board of directors.)
“Since the beginning of the year, our stock price has increased from $36.85 to $42.55, over 15%,” Todd Jones, president and CEO of Publix, said in a statement. “Our associates deserve the credit for continuing to make us a leader in customer service.”
Publix operates 1,190 stores throughout Florida, Georgia, Alabama, Tennessee, South Carolina, North Carolina and Virginia.
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