Specialty retailer Rex Stores enjoyed a healthy boost in net income, but a decline in overall and comp sales, during its fiscal second quarter.
Net income rose 39 percent during the second three months, hitting $5.4 million, up from $3.9 million in the year-ago period. Gains in net income reflected an increase of 2.1 percent gross margin in the second quarter, to 31.5 percent.
Net sales in the second three months, ended July 31, dropped 7 percent, to $93.1 million, down from $100.5 million in the same quarter in 2001. Comp-store sales for the same period declined 6 percent.
Riding high on strong air conditioner sales and continuing cost controls in the second quarter, Rex said it benefited both from the rise in gross margin and operating income gains. Income from operations increased 26 percent, to $3.3 million, up from $2.6 million in the same quarter the previous year.
In the first half of fiscal 2002, net income climbed 37 percent, reaching $9.6 million, up from $7 million in the same six months in 2001. Sales in the first six months decreased 9 percent, to $186.6 million, down from $205.3 million year over year. Comp-store sales for the first half dropped 7 percent. Income from operations for the period hit $5.57 million, about flat with the $5.59 million generated in the same six months a year ago.