Harry's Market Experiences 2Q02 Net Loss, Forges Ahead with Whole Foods Agreement

November 12, 2001

1 Min Read
Harry's Market Experiences 2Q02 Net Loss, Forges Ahead with Whole Foods Agreement


Harry's Market Experiences 2Q02 Net Loss, Forges Ahead with Whole Foods Agreement

ATLANTA--While its $35 million acquisition by Whole Foods is still going as planned, Harry's Farmers Market Inc. experienced slightly decreased sales in its second quarter (2Q02) and a net loss due to increased competition in its Atlanta area. The company posted $33.3 million in sales for 2Q02, ended Aug. 1, compared to $35.3 million for the same quarter last year, coming in 5.7-percent lower due to increased competition from two stores that opened near Harry's in a Hurry locations in Atlanta, as well as from the general economic downturn experienced by the entire grocery industry. Gross margin decreased to $9.9 million, or 29.6 percent of net sales, compared to $10 million, or 28.4 percent of net sales, experienced in 2Q01. Operating expenses fell slightly to $10.1 million, compared to $10.4 million in 2Q01. Net loss was slightly better for 2Q02 at $.9 million (or $.15 per share lost), an improvement from last year's $1.1 million loss (or $.18 per share lost).

The company announced Oct. 23 that its shareholders approved the sale of its three megastores and support facilities to Whole Foods Market Group Inc. (NASDAQ:WFMI) for around $35 million in cash. Approximately $23 million of the proceeds will be used to pay off and retire Harry's credit facility. However, the five Harry's in a Hurry food stores were not included in the transaction with Whole Foods; Harry's will continue to operate and grow these stores, minus the recently closed Peachtree Road store in Atlanta. The acquisition was expected to be completed on or around Oct. 31.

Subscribe and receive the latest insights on the health and nutrition industry.
Join 37,000+ members. Yes, it's completely free.

You May Also Like