BOULDER, Colo. -- Wild Oats Markets here last week said it was able to leverage sales growth to return to profitability in the second quarter that ended July 2.
Net income for the quarter was $922,000, compared with a loss a year ago, although the company had a loss for the half of $229,000. Sales jumped 13.1% to $284.6 million in the quarter and 9.2% to $562.7 million in the half, with comparable-store sales climbing 5.4% in the quarter. It said comps excluding Southern California, which continued to lap strike-related comparisons, rose 7.9% for the quarter.
Customer traffic increased 0.3%, and average transaction size per customer rose 5% during the quarter, the company reported.
The company said net income in the quarter was adversely affected by pre-tax charges of $1 million related to restructuring charges and accelerated depreciation for facility closures; net income for the half was negatively impacted by several items totaling $4.1 million, or 14 cents per share, including a $2.9 million asset write-off; restructuring charges and accelerated depreciation for closing or relocating facilities; $600,000 in incremental accounting and legal fees related to a March 2005 lease restatement; and $600,000 related to the write-off of loan amortization fees resulting from termination of the company's former credit facility.
