Smart & Final Stores on Wednesday reported its financial results for the 13-week and 53-week periods ended Jan. 3.
Net income for the 13-week fourth quarter rose 7.4 percent to $10 million. Sales increased 18.9 percent to $997.6 million, including $73.3 million attributable to an extra week in this year’s fourth quarter. Comparable store sales increased 3.5 percent, including a 3.9 percent increase in transaction count and a 0.4 percent decline in average transaction size, which the Commerce, California-based company says was negatively impacted by deflation.
Net income for the year increased 15.5 percent to $38.3 million. Sales were up 12.4 percent to nearly $4 billion and comparable store sales rose 4.5 percent, including a 4.4 percent increase in transaction count and a 0.1 percent increase in transaction size.
“2015 was an exceptional year for Smart & Final Stores,” said David Hirz, president and CEO. “Our focus on execution positioned us to deliver strong top-line sales growth and record bottom-line financial performance. We completed our 2015 store development plan, which included expanding our Smart & Final Extra! store base by nearly 30 percent and adding two new Cash & Carry stores. Additionally, we continued the successful roll-out of key merchandising initiatives, which helped contribute to our 26th year of positive comparable store sales over the past 27 years.
“We’ve set a new standard for growth at Smart & Final Stores and have made the necessary investments to support an accelerated pace of expansion in 2016,” added Hirz. “We plan to increase our Smart & Final banner store base by 15 percent this year, driven by the successful acquisition of 33 store leases and related assets in central and Southern California previously operated under the Haggen banner. In addition, we plan to open four to five new Cash & Carry stores in 2016.”
During fiscal 2015, the company opened 20 new Smart & Final Extra! stores and completed nine conversions of legacy Smart & Final stores to the Smart & Final Extra! format, including three store relocations. The company also opened two new Cash & Carry stores. As of Jan. 3, the company operated a total of 276 stores, including 127 Smart & Final Extra!, 94 legacy Smart & Final stores and 55 Cash & Carry stores.
“We look forward to building on our positive momentum in 2016,” Hirz said. “We have a strong team in place and the resources to execute our multi-year growth plan. As a result, we’re anticipating that 2016 will mark our 27th year of positive comparable store sales in the last 28 years.”
In the first quarter of 2016, the company expects to open 13 or 14 new Smart & Final Extra! stores and complete two relocations of legacy Smart & Final stores to the Extra! format.
