The Pantry reported a second quarter net loss this morning, but the company did see merchandise sales and its profit from gas rise during the quarter.
The Cary-based chain of 1,659 convenience stores mostly under the Kangaroo Express banner reported that its net loss for the quarter ended March 31, 2010 was $269,000, or 1 cent per share. However, sales of in-store merchandise -- which have been the focus of an ongoing remodeling campaign by the company -- rose by 2 percent in stores open at least a year.
The company also benefitted from rising fuel profit margins. In the second quarter, the amount the Pantry made on gasoline rose by 22 percent compared with the first quarter of this year and 5.4 percent conpared with the second quarter of 2010. However, with Americans watching their money and driving less, the company sold fewer gallons this quarter -- roughly 4 percent less than the second quarter last year.
"Our improving execution contributed to expanded gross margins, higher productivity, and ultimately Adjusted EBITDA growth, despite persistently rising fuel prices," said CEO Terrance Marks in a statement released this morning. "Of equal importance, we continued to make progress against our core strategic initiatives of foodservice expansion and productivity growth."