Hart Stores reports second quarter profit

SYMBOL: HIS (TSXV)

www.hartstores.com

LAVAL, QC, Sept. 25, 2013 /CNW Telbec/ - Hart Stores Inc. (TSXV: HIS) announces its financial results today for the second quarter ended August 4, 2013.

For the second quarter, sales reached $21.9 million compared to $22.4 million for the same period in the previous year. The Company reported net earnings of $645,000 or $0.05 per share for this period compared to a net loss of $2,516,000 or $0.18 loss per share for the same period in the previous year. Comparable store sales decreased by 3.3% over the same period in the previous year. The improvement in net earnings in the second quarter was mainly the result of lower store and administration expenses and reduced restructuring costs as well as a non-recurring insurance recovery.

For the six month period ended August 4, 2013, sales reached $38.2 million compared to $40.4 million for the comparable period in the previous year. The Company reported a net loss of $2,506,000 or $0.18 loss per share for this period compared to a net loss of $8,244,000 or $0.60 loss per share for the same period last year. Comparable store sales were flat for the six month period. The improvement in net earnings in the six month period was mainly due to lower cost of goods sold and lower store and restructuring costs.

"While several initiatives remain to be completed in order to achieve our full potential, we are very pleased with the significant restructuring progress that the Hart team has accomplished to date" stated Mr. Robert Farah, the Company's President and COO. 

Summary of Quarter and six-month periods		For the 13 weeks ended:		For the 26 weeks ended:
(Unaudited)
(In thousands of dollars, except per share amounts)		August 4, 2013	July 29,2012	August 4, 2013	July 29, 2012
Sales		21,933	22,443	38,215	40,398
Net earnings (loss)		645	(2,516)	(2,506)	(8,244)
	Net earnings (loss) per share:
	Basic	0.05	(0.18)	(0.18)	(0.60)
	Diluted	0.05	( 018)	(0.18)	(0.60)

 

About Hart Stores Inc.:

Hart Stores Inc. operates a network of 60 mid-sized department stores located in secondary and tertiary markets in Eastern Canada, where the Company has established a dominant position in many of the communities that it serves. The stores offer an extensive and differentiated selection of national and exclusive fashion apparel brands as well as family footwear, home furnishings, electronics, appliances, giftware, toys and seasonal goods.

SOURCE: HART STORES INC.

Mr. Robert Farah
President and COO
[phone]