Smart & Final’s stock spiked 11 percent shortly after the announcement of its third quarter financial results, which showed a considerable improvement in store sales growth and further developments in its acquisition of 32 Haggen store leases across central and southern California.
In the report, President and CEO Dave Hirz said that he remains confident that these Haggen locations will transition into Smart & Final stores sometime in 2016, provided that the court approves the deal.
In addition, the company is planning to continue expanding its Smart & Final Extra! format with an additional six to eight new stores in 2016. There will also be three to five new Cash & Carry stores on the way next year.
“With exciting store growth prospects, an exceptional team, and a differentiated consumer proposition, we look forward to continuing to execute our growth plan,” said Hirz.
In the third quarter, ended October 4, 2015, Smart & Final reported that its net sales increased 10.1% to $1,246.1 million from $1,131.8 million in the same period of 2014. Net sales growth was driven by a 4.8% increase in comparable store sales and from the net sales contribution of new stores, according to the report.
“Our third quarter performance was strong across our banners, with both Smart & Final and Cash & Carry stores posting solid transaction growth and stable gross margin rates,” Hirz continued. “While average transaction size continues to be impacted by moderating deflation in some product categories, overall sales growth is in our expected range for 2015. As a result, we are increasing our full year 2015 guidance for Adjusted EBITDA to a range of $190 to $192 million.”
Other highlights for the third quarter include:
Stay tuned to DeliMarket News as we continue to follow Smart & Final’s performance in Q4 2015 and beyond.