LOS ANGELES -- Smart & Final here said last week sales in its food-service segment fell in the weeks following Sept. 11.
ed Oct. 7 the company experienced its 10th consecutive quarter of increased earnings since it launched a restructuring program in early 1999.
The company attributed its increased earnings from store operations to strong sales growth and improved gross margins, the result of its marketing and national purchasing programs, partially offset by increased utility costs and labor expenses.
In the third quarter, three new stores were opened, and one store was closed. Year-to-date, nine new or relocated stores have opened, bringing store count to 228 at the end of the quarter.
For the 16-week quarter, net sales increased 3.7% over the previous-year quarter to $609 million, store sales rose 4.9% and comparable-store sales were up 3.2%.
In the quarter, total food-service distribution sales declined 1% to $117 million, with sales in the Florida food-service unit up 7.8% while sales in the northern California unit decreased 9.1%. Sales in both units fell off after Sept. 11.
Year-to-date, sales rose 7.1% to $1.5 billion, income increased 34.2% to $10.6 million and earnings per share were 36 cents, up from 27 cents in the comparable period last year.
Ross Roeder, Smart & Final president and chief executive officer said, "We're pleased to again report improved earnings despite increasingly challenging times. In the company's core store operations, sales increases were strong, particularly in light of the company's exceptional sales growth in the prior-year quarter.
"Gross margins in the third quarter continue to reflect the success of our national purchasing efforts and improving distribution efficiencies. In the stores segment, although our sales were initially affected by the events of Sept. 11, in the succeeding weeks we've seen a slow recovery to more normal sales trends.
