Harris Teeter Supermarkets said that its full-year profits fell as acquisition costs and store openings weighed on the bottom line.
The company booked a 9.5% drop in full-year profits yesterday (1 November). The decline was due to Harris Teeter’s acquisition of ten Charlotte-area Lowes Foods locations, the company said. The deal reduced earnings by $15m.
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During the period, Harris Teeter also opened 13 stores. Capital expenditures for fiscal 2012 totalled $200m, the group revealed.
However, while investments dented profitability increased store penetration benefited sales, which rose by 5.8% to $4.5bn, the company revealed. Comparable sales were up 4% in the year, the group added.
“On a comparable store basis, we continue to experience increased unit sales compared to the prior year, and our store-brand penetration continues to improve. We believe these positive results are attributable to our continuing commitment to our customers to deliver outstanding values and excellent customer service,” Thomas Dickson, chairman and CEO, said.
Harris Teeter revealed that it expects to increase its capital expenditure to $235m as it looks to drive growth in the coming year.
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