The company's comparable store sales increased and total sales increased, beating expectations. Chief executive Michael O'Sullivan was pleased with the performance, which he said was driven by ahead-of-plan sales, significant gross margin growth and faster-than-expected progress on our supply chain efficiency initiatives. Discount retail stores offer brand-name clothing, footwear, accessories, home furnishings, and other merchandise at significantly lower prices than other retailers.
They do this by taking advantage of disruptions and cancellations australia consumer email list in the supply chain for that commodity. O'Sullivan said: "We remain confident in our financially balanced business prospects. Based on our year-to-date results, we have increased our full-year margin and earnings guidance despite some incremental cost pressures from ocean freight. Nonetheless, there are some risks, so we are carefully planning our business and maintaining comparable store sales guidance for the second half to growth.
Seeing consumers wince was a downer for CEO Todd Vassos in the company's second quarter. Although new store openings and same-store sales growth drove net sales growth, the company's operating profit fell to $1 million. "We made important progress on our back-to-basics plan in the second quarter," Vassos said. However, while we advanced some operating goals and drove positive traffic growth, we are not satisfied with our financial results, including top-line results that were below our expectations for the quarter.