Printer Friendly


 ATLANTA, Aug. 30 /PRNewswire/ -- Harry's Farmers Market, Inc. (NASDAQ-NMS: HARY) announced today its earnings for the fiscal 1994 second quarter.
 Revenues for the second quarter ended July 28 were $27.7 million compared with $25.3 million for the same period the prior year. Comparable store sales increased 8.0 percent from fiscal 1993 second quarter.
 The gross margin for fiscal 1994 second quarter increased 2.0 percent to 28.0 percent from 26.0 percent in fiscal 1993 second quarter. This improvement was primarily due to improvement in procurement strategies and better inventory control on the perishable products.
 Direct store expenses for fiscal 1994 second quarter were 15.5 percent of net sales, the same as fiscal 1993 second quarter and a 1.6 percent of net sales improvement over fiscal 1994 first quarter. Selling, general and administrative expenses as a percentage of net sales for fiscal 1994 second quarter increased 2.6 percent to 7.8 percent from 5.2 percent in fiscal 1993 second quarter as the company continues to build its staff in preparation to execute its growth plan. Additionally, the company incurred costs associated with the development of the "Harry's In A Hurry" concept, a fresh food convenience store, the first of which successfully opened during the quarter.
 Net income for the fiscal 1994 second quarter was $369,000, or $.06 per share, compared with net income of $403,000, or $.10 per share, for the same period of the prior year.
 Commenting on the results, Harry Blazer, CEO and president, said: "Our second quarter results are in line with expectations. Our store profitability has increased as we have seen improvement in both our gross margin and our direct store expenses. In addition, we have invested extensively to develop our human and manufacturing resources as we prepare to open three megastores and three 'Harry's In A Hurry' stores during the next four quarters. Our first 'Harry's In A Hurry' store is exceeding our projections and we plan for this new concept to be a significant part of our growth plan. With our newly opened bakery and food processing manufacturing facilities, we will be able to place a greater emphasis on our branded products in both our megastores and convenience stores. As we grow we should realize some economies of scale in our manufacturing facilities."
 Subsequent to the end of the second quarter, the company secured a commitment for an additional $35 million credit facility to fund expansion, bringing the total in bank credit facilities to approximately $44 million.
 The Cobb County megastore is expected to open on October 21. Harry's Farmers Market, Inc. owns and operates concept megastores and convenience stores specializing in perishable food products, as well as specialty and gourmet non-perishable food products that are complementary to the fresh food offerings.
 Consolidated Statement of Earnings
 For the quarter ended 7/28/93 Pct. 8/2/92 Pct.
 of sales of sales
 Net sales $27,723 100.0 $25,303 100.0
 Cost of goods sold 19,973 72.0 18,732 74.0
 Gross profit 7,750 28.0 6,571 26.0
 Operating expenses
 Direct store expenses 4,295 15.5 3,911 15.5
 Selling, gen. and admin. exps. 2,175 7.8 1,315 5.2
 Deprec. and other amort. 732 2.6 439 1.7
 Amort. of pre-opening exps. 30 0.1 --- ---
 Total operating expenses 7,232 26.1 5,665 22.4
 Operating profit 518 1.9 906 3.6
 Other income (expense)
 Interest expense (112) (0.4) (277) (1.1)
 Other income 195 0.7 28 0.1
 Total other income (expense) 83 0.3 (249) (1.0)
 Earnings before income taxes 601 2.2 657 2.6
 Income taxes 232 0.8 254 1.0
 Net earnings 369 1.3 403 1.6
 Net earnings per share $ 0.06 $ 0.10
 -0- 8/30/93
 /CONTACT: David A. Pattillo, executive vice president and chief financial officer of Harry's Farmers Market, 404-664-6300/

CO: Harry's Farmers Market, Inc. ST: Georgia IN: REA SU: ERN

RA-BN -- AT006 -- 7459 08/31/93 11:26 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 31, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters