Richard Wilson, President and CEO, commented, "The Company's second quarter results were impacted by the severe drought which affected the majority of our trading area and the agricultural business in the Midwest. Our second quarter earnings were also negatively impacted due to increased expenses relating to a shift of the store inventory process into the second quarter from the third quarter, new store expenses, and a one-time expense relating to a supply chain study. The Company's gross margin rate expanded by 30 basis points due to better pricing disciplines and the initial impact of our new regional pricing initiative. For the second quarter of fiscal 2013, gross margin dollars grew by 1.9% and margin rate increased to 32.7%. On a year-to-date basis, gross margin dollars grew by 2.7% with an improved margin rate of 31.2%."Wilson concluded; "We expect improved results in the second half of the year from new initiatives in both Hardlines and Softlines, as well as the addition of frozen foods to our consumables offering beginning in October. We also expect a positive impact from the rollout of our regional merchandising strategy this fall."
ALCO Stores, Inc. Reports Operating Results For First Half Of Fiscal 2013
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