Gross profit in the third quarter of fiscal 2013 increased by 4.0% to $362.2 million (30.54% of sales) from $348.3 million (30.22% of sales) in the third quarter of fiscal 2012. For the 39 weeks ended July 2, 2013, gross profit increased by 3.7% to $1.06 billion (30.05% of sales) from $1.02 billion (30.03% of sales) in the same period of fiscal 2012. The LIFO charge for the third quarter of fiscal 2013 was zero as compared to $1.5 million (0.13% of sales) in the third quarter of fiscal 2012. The LIFO charge for the first nine months of fiscal 2013 was $0.7 million (0.02% of sales) as compared to $7.4 million (0.22% of sales) for the first nine months of fiscal 2012. The Company currently estimates that it will experience minimal product cost inflation during fiscal 2013.
Selling, general and administrative (“SG&A”) expenses for the third quarter of fiscal 2013 decreased from the third quarter of fiscal 2012, while during the first nine months of fiscal 2013 SG&A expenses increased from the respective nine month period in the prior year primarily as a result of incremental store growth and its impact on associated operational costs. On a percent of sales basis, SG&A expenses decreased by 150 basis points during the quarter and 43 basis points for the 39 weeks ended July 2, 2013, as compared to the respective periods of the prior year. As reported in the prior year, the operating results for the comparable quarter and 39-week period in fiscal 2012 included approximately $22.3 million of impairment losses and other incremental costs associated with the store purchase and sale transaction with Lowes Foods (“Lowes Foods Transaction Costs”) and gains of $3.1 million recognized from life insurance proceeds. The net impact of these items effectively increased fiscal 2012 SG&A expenses by $19.2 million, or 167 basis points for the comparable quarter and 57 basis points for the comparable 39-week period.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts