Stater Bros.’ consolidated sales in the 13 weeks ended March 30 were $963.8 million, up $1.9 million or 0.2 percent from the 13 weeks ended March 31, 2013, which saw consolidated sales of $961.9 million. The San Bernardino, Calif.-based company’s sales for the 26 weeks ended March 30 were $1.95 billion, up $17.2 million or 0.9 percent from the same period in the prior year.
Sales in the prior-year period were affected by the Easter holiday that fell in the second quarter of the prior year and in the third quarter of the 2014 fiscal year, according to the company. The Easter holiday increased net sales in the prior-year quarter by approximately $11.3 million. Excluding the impact of Easter, same-store sales also increased $9.5 million or 1.0 percent for the 13 weeks ended March 30 compared to the 13 weeks ended March 31, 2013. Same-store sales for fiscal 2014 year-to-date increased $23.2 million or 1.20 percent compared to the 26 weeks ended March 31, 2013.
Gross profit margins for the 13 weeks ended March 30 were 27.64 percent of sales compared to the 13 weeks ended March 31, 2013, which recorded gross profit margin of 26.90 percent of sales. Gross profit margin for the 26 weeks ended March 30 was 26.95 percent compared to 26.39 percent for the same period in the prior fiscal year. The company reported net income for the second quarter ended March 30 of $19.2 million compared to net income of $11.6 million for second quarter of the prior fiscal year and partially reflects the company’s investment in energy savings, remodels and installation of energy saving equipment, such as doors on all refrigerated cases, at the stores. Net income for the fiscal 2014 year to date was $30.2 million compared to $17.0 million for the same period in the prior fiscal year.
“We are pleased with our sales growth in the second quarter of fiscal 2014 given the extremely competitive environment in Southern California,” said Jack H. Brown, chairman, president and CEO of Stater Bros. “We continue to be the No. 1 full-service supermarket chain in Southern California, according to a March 2014 national consumer survey.
“We believe that our sales growth is due to our valued customers’ positive response to our low-price marketing strategy of keeping our prices as low as possible during these continued challenging economic times while continuing to provide our customers the service and value they deserve on each of their visits to their local Stater Bros.’ supermarket.
“The restructuring of our debt and the related reduction in our interest cost will allow us to continue to invest in our valued customers and continue to allow us to not fully pass on the costs of inflation, which has allowed us to keep our prices low.
“Our commitment over the past several years has had a positive impact on our sales growth,” Brown added. “We have been and remain committed to providing low prices, great value and outstanding service to all of our valued customers.”
Stater Bros. is the largest privately owned supermarket chain in Southern California and the largest private employer in both San Bernardino and Riverside counties, with annual sales in 2013 of $3.9 billion. The company currently operates 167 supermarkets and employs approximately 18,000 people.
