“While our financial performance during the second quarter was consistent with our expectations for a year of transition, we believe that we have been able to foster necessary structural and operational changes more quickly than anticipated, and as a result, have become confident in increasing the number of new store openings during the second half of 2012, and in 2013,” says Julian R. Geiger, president and chief executive officer. “We believe that this growth, combined with our recently announced agreement with Starbucks Corp., and with ongoing progress with our six primary initiatives, will change the trajectory of our business in a positive direction over the next 12 to 18 months.”
Crumbs said cost of sales increased nearly 10% during the second quarter, to $4,775,000 from $4,351,000, and as a percentage of sales, increased 80 basis points to 43.1%. Gross profit increased 6% to $6,306,000 from $5,943,000.
For the six months ended June 30, Crumbs sustained a loss of $1,287,000, which compared with a loss of $257,000 in the same period of fiscal 2011. Net sales totaled $22,358,000, up 12% from $20,013,000.
