Fairway — Q2 FY2014 Earnings Presentation
8 slides from Fairway's earnings presentation, Nov 12, 2013
Slide 1: Second Quarter Review November 7, 2013
Second Quarter Review November 7, 2013 0
Slide 2: Forward Looking Statements/Safe Harbor
Forward Looking Statements/ Safe Harbor Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown
Slide 3: Real Estate Pipeline
Chelsea, Manhattan store open (July 2013) Desirable high traffic location Nanuet, New York store open (Oct 2013) Exceeding initial expectations Signed lease for Lake Grove, Long Island store (Est. Spring 2014) Located in a premier retail corridor on Long Island Signed lease for TriBeCa, Manhattan st
Slide 4: Business Update
New store investment costs trending down Nanuet construction costs expected to be $10-11 million, net of TIs 14.1% topline growth Same store sales up 1.0% despite unfavorable calendar shifts Gross margins improved 10 basis points to 32.4% Vendor initiatives, private label growth and shrink managemen
Slide 5: Operational Initiatives in Focus
Operational Initiatives in Focus Production Center Appointed VP of Quality Assurance & Compliance Produce cross-dock to operate in new facility by end of fiscal year Bakery & commissary to be phased in over 1H FY2015 Private label penetration improved ~30 bps Launched over 75 new specialty and organ
Slide 6: Second Quarter Sales Overview
Net Sales and Customer Visits ($ and visits in millions) Second Quarter Sales Overview Q2 FY2013 Q2 FY2014 Growth Net Sales $161mm $183mm $22mm 14% Customer Visits 4.0mm 4.7mm 0.7mm 17% Comparable store average basket size growth ~1.6% Comparable store customer transaction growth ~(0.6)% Comparable
Slide 7: Second Quarter Financial Highlights
14% net sales growth and 17% growth in customer transactions Impacted by holiday shifts and new store timing Over 90% of sales growth contribution from new stores SSS: 1.0% Gross profit margin increased 10 basis points to 32.4% Merchandise margin up nearly 70 basis points over prior year Public comp
Slide 8: Third Quarter Outlook
25% topline growth on a reported basis 17% topline growth on an adjusted basis1 Pro forma for the lost net sales in Q3 FY2013 at our Red Hook, Brooklyn location Adjusted EBITDA growth in excess of 20% on a reported basis1 Year-over-year Adjusted EBITDA margin expansion2 Third Quarter Outlook The Red
Fairway Group Holdings — Q2 FY2014 Earnings Presentation on 6ix