NEW YORK — United Retail Group Inc.’s repositioning on the merchandise front along with solid sales growth resulted in a 22 percent profit gain in the second quarter.
For the quarter ended July 29, net earnings climbed to $5 million, or 35 cents per diluted share, from $4.1 million, or 31 cents, in the prior year on sales that gained 5 percent to $120.9 million from $114.7 million. Comparable-store sales increased 6 percent during the quarter.
For the six-month period, net income jumped 36 percent to $6.9 million, or 49 cents per diluted share, from $5.1 million, or 39 cents. Sales increased 4 percent to $230.3 million from $221.2 million last year, and same-store sales rose 5 percent during the first half of the fiscal year.
The specialty retailer of large-size women’s apparel and shoes cited second-quarter success on solid sales momentum, steady growth in transactions per average store, controlled costs, less spring-summer carryover apparel heading into the fall season and “positive energy” within the business.
“We have been focused on efforts to reposition our merchandise assortment, which has resulted in consistent sales growth,” said Raphael Benaroya, the company’s chairman, president and chief executive officer, in a statement. “As we move forward, we will pursue additional productivity in our existing space as well as open new stores.”
Online sales increased 48 percent during the quarter, and the company said during a conference call to Wall Street that there is the potential for substantial sales and rapid growth in the shop-at-home business.
The quarter was the eighth consecutive period in which the company posted positive earnings, and the 23rd month of positive same-store sales.