Why Harris Teeter Shares Crumbled
Feb 1st 2013 7:43PM
Updated Feb 2nd 2013 10:00AM
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What: Shares of Harris Teeter Supermarkets were getting knocked down to the bottom shelf today, falling as much as 10%, after coming up short in its earnings report.
So what: The North Carolina-based grocer said overall revenue grew 4%, to $1.16 billion, while same-store sales increased 2.5%. Earnings per share came in at $0.46, well short of expectations of $0.59. The company blamed aggressive pricing from competitors, and a slow retail environment for the miss. In 2013, Harris Teeter plans to open nine additional stores, increasing its store count by about 4%.
Now what: Harris Teeter was greeted by a round of downgrades after its latest update, but I wouldn't dismiss the stock after one quarter. This is a strong brand with the potential to expand outside its home region in the Southeast, and add new stores where it's proven itself. I'd like to see the store count growing faster, but I expect it to bounce back in the long term.
You can keep an eye on Harris Teeter by adding it to your Watchlist here.
The article Why Harris Teeter Shares Crumbled originally appeared on Fool.com.Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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