ATLANTA -- Harry's Farmers Markets here reported a net loss of $1.47 million in the second quarter, which was partially attributable to a writedown on a Nashville, Tenn., property.
The company reported progress in attempts to improve gross margins and reduce operating expenses.
The loss in the 13-week period ended Aug. 3 was partly tied to a $505,000 writedown of a property in Nashville. The company continues to explore all options for the property, including a sale and leaseback of a portion of the tract. Harry's announced earlier that it is putting all plans on hold indefinitely as it re-evaluates its proposed expansion into Nashville.
Net sales for the quarter increased 35.8% to $37.6 million, compared with $27.7 million last year. The company said the increase in sales was primarily due to the opening of two new stores, a third megastore and a second Harry's In A Hurry covenience store, during the past year.
"We are pleased with the progress we have made during the past six months," said Harry Blazer, president and chief executive officer. "Our primary focus is on continued improvement in our gross margin through better operating efficiencies and internal controls while operating within our cost containment program in the manufacturing and administrative support areas," he emphasized.
Lee Wilder, a securities analyst for Robinson-Humphrey Co. in Atlanta, said Harry's is showing improvement on its bottom line, despite the net loss this quarter.
She said the company is taking a serious look at its expansion plans. "I think they're on the right track," she said.
