Rocky Mountain Chocolate Factory up on 28% Q2 profit increase
Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF), a maker of gourmet chocolate and operator of confection stores, announced before the opening that its second-quarter profit increased 28% to $1.3 million, or $0.20 per share, from $1 million, or $0.16 per share, a year earlier.
The Durango, Colo.-based firm’s revenue for the three months ended Aug. 31 was $7.5 million, up 10% from $6.8 million in the year-ago period. Rocky Mountain’s costs and expenses rose slightly to $5.4 million, from $5.1 million.
The company’s income was helped by a 1.6% increase in same-store sales and a corresponding decrease in products purchased by franchisees.
Rocky Mountain’s new agreement with The Grove, Inc., an operator of airport retail stores, was a highlight of the quarter, COO Bryan Merryman said in a statement.
“This is an exciting development for our Company, because retail stores that are currently operated by franchisees at airports, in general, outperform the average Rocky Mountain Chocolate Factory store by a factor of more than two-to-one,” Merryman said in a statement. “We currently have nine retail airport locations in operation and plans call for at least eight additional airport stores to be operating under the agreement with The Grove within the next two years."
The company opened six new stores during the second quarter.
In midday trading, RMCF shares are up 2.14%, or $0.35, at $16.70. Over the last 52 weeks, shares have ranged from $12.57 to $18.10.
