LOS ANGELES (AFX) - Smart & Final Inc., which operates 250 food warehouses in the West, on Tuesday said second-quarter profit plummeted as higher operating costs outweighed modest sales growth.
Net income declined to $5.8 million, or 18 cents per share, from $8.1 million, or 25 cents per share, in the prior-year quarter. The company said a review of strategic alternatives in the period resulted in a charge of 2 cents per share.
Sales increased to $493.7 million, up 2 percent from $484.1 million a year ago.
Same-store sales, or sales at stores open at least one year, fell 0.3 percent in the quarter.
President and Chief Executive Etienne Snollaerts said the results reflect higher operating costs and 'unexpectedly weak demand in the spring season among certain classes of business customers.'
Buying, selling and occupancy costs rose 2 percent to $412.5 million. Operating expenses jumped 8 percent to $69.7 million.
Shares of Smart & Final rose 3 cents to close at $16.50 on the New York Stock Exchange.
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