Genovese earnings climb 99%.
Genovese earnings climb 99%
MELVILLE, N.Y. - A tighter hold on costs, coupled with profits realized from the sale of two units, resulted in a dramatic bottom-line improvement for Genovese Drug Stores during its fourth quarter and fiscal year, ended February 1.
The operator of 95 drug stores in the New York City area saw its profits nearly double over the 52 weeks to $5.51 million from $2.77 million a year ago on a 6.6% sales increase to $432 million from $405.1 million. Same-store sales were up 5.2%. Full-year net margins almost doubled, rising to 1.3% from 0.7% a year ago.
During the fourth quarter Genovese's income more than quadrupled to $2.68 million from $656,000 a year ago. However, the regional chain evidently felt the pinch of the slowing economy, as sales grew just 2.4% to $113.1 million from $110.4 million.
Although earnings for the year were aided by some $238,000 derived from the divestiture of two stores, the main profit push was tied to "very tightfisted expense controls and improved gross profits," says vice president and treasurer Jerome Stengel.