GREENSBORO, NC - The Fresh Market has announced that it will grow by a total of 19 stores in fiscal year 2015 and spend approximately $100 million to $110 million in capital expenditures.
The company says that two new stores opened in the first quarter, five to six new stores will open in the second quarter, and 11 to 12 new stores will open in the second half of the year. There will also be 10 store remodels or refreshes, with the majority completed in the first half of the year.
This revelation came along with the announcement of the company’s Q1 2015 financial results.
Speaking on the company’s financial results, Interim Chief Executive Officer Sean Crane, commented, “We achieved adjusted diluted earnings per share growth of 16.8%, reflecting the expense and operating improvements we have implemented in a challenging environment. These results demonstrate our ability to leverage expenses with relatively flat comparable store sales and we believe this flexibility will enable us to invest in initiatives and help increase customer frequency and attract new customers as we grow our store base and position The Fresh Market for long-term growth.”
Total net sales for the first quarter of 2015 increased 7.2% to $462.0 million for The Fresh Market, while comparable store sales decreased 0.1% to $404.2 million. The company says that winter storms forced temporary closures for a significant number of stores during the first fiscal quarter, which had an approximately 50 basis point negative impact on comparable store sales. At the same time, the company’s gross profit increased 8.4%, or $12.4 million, to $160.6 million in the first quarter of fiscal 2015, compared to the prior fiscal year period.
Other highlights from the report include:
- GAAP net income was $15.2 million, down from $16.6 million in Q1 2014.
- Gross margin increased 40 basis points to 34.7% from Q1 2014.
- Adjusted EBITDA was $57.9 million, an increase of 12.3% from Q1 2014.
- Gross profit increased 8.4%, or $12.4 million, to $160.6 million, compared to Q1 2014.
- Cash flow from operations were $62.6 million up from $56.2 million in Q1 2014.
“As we look at the remainder of fiscal 2015, we remain confident in our ability to drive earnings growth and generate strong cash flow,” Crane concluded. “Focusing on greater consistency of earnings, we continue to take steps across the organization to further leverage our cost structure to fund incremental investments that will support building brand awareness, enhancing our culture and improving our long-term prospects.”
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