Giant Food Inc. yesterday reported a 67.4 percent increase in earnings for its second fiscal quarter that ended Aug. 10 from the same period last year.
The Landover-based company, which operates 134 supermarkets, said its net income was $12.3 million (41 cents a share) on sales of $506.4 million. During last year's second quarter, the company reported net income of $7.3 million (24 cents) on sales of $481.9 million. Last year's per-share earnings were adjusted to reflect a 2-for-1 stock split in May.
Giant's profit margin on sales during the second quarter was 2.42 percent compared with the industry average of about 1 percent. Giant Food noted that its second-quarter earnings last year had been "adversely impacted" by its discount prices on prescription and drug items. However, the company added, "As volume has continued to grow in both the food and drug stores, earnings have continued to trend up."
For the first half of its fiscal year, Giant reported a 30.5 percent increase in net income to $24.8 million (83 cents) on sales of $1.013 billion from earnings of $19 million (64 cents) a year earlier on sales on $962.6 million.
Meanwhile, Hechinger Co., which operates a chain of 49 do-it-yourself home centers, yesterday reported a 7.8 percent increase in its fiscal second quarter that ended Aug. 3 to $7.2 million (29 cents a share, fully dilluted) on sales of $129.3 million from earnings of $6.7 million (29 cents) a year earlier on sales of $114.4 million.
Six-month earnings rose 9.3 percent to $11 million (46 cents) on sales of $243.9 million from $10.1 million (44 cents) a year earlier on sales of $202.3 million. Last year's figures were adjusted for a 5-for-4 stock split in June.