Empire Company Limited reported solid second quarter fiscal 2020 results with same-store sales increasing 2.0 per cent.
“Our strong second quarter fiscal 2020 results reflect both top line growth and significant gross margin expansion," said Michael Medline, president and CEO of Empire. "This has led to industry leading year over year EBITDA margin expansion. It is a testament to our team that EPS from continuing operations exceeded 50 cents for the first time since the first quarter of fiscal 2013, while all strategic initiatives are progressing with velocity."
Empire is progressing through the final year of Project Sunrise. The project is on track and yielding benefits that are expected to exceed management’s initial expectations. The Company realized approximately $100 million of these benefits during fiscal 2018 through organizational design, strategic sourcing cost reductions and improvements in store operations.
In fiscal 2019, the company realized a further approximate $200 million of benefits, driven by initial rollouts of category resets and cost reductions in other areas.
For fiscal 2020, management expects to achieve at least $250 million of in-year benefits for a cumulative benefit of at least $550 million, an increase in its original projection for the three-year program. These in-year benefits for fiscal 2020 are expected to result from the completion of the rollout of the category reset program, as well as continued cost reductions and operational improvements.