Fay's qtr. revenues up; sets sights on 2nd half

Drug Store News, Oct 14, 1991

LIVERPOOL, N.Y. -- Fay's posted net earnings for the second quarter of $1.25 million, or 8 cents a share, compared with $3.25 million, or 21 cents a share in the second quarter last year. Revenues in the quarter ended July 27 increased 27.8 percent to a record $207.4 million, as comparable store sales climbed 5.7 percent.

Chairman Henry Panasci, Jr. said earnings were affected by lower than expected gross margins, store expansion costs and sales weakness in the Paper Cutter division.

"With the costs of absorbing the Carls stores behind us and recessionary pressures easing, we expect that second half results will be more in line with expectations," said Panasci.

First half net earnings are at $3.1 million versus last year's $4.2 million, with six months sales of $384.6 million against $315.5 million in last year's comparable period.