NEW YORK, July 22, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on QKL Stores Inc. (NASDAQ: QKLS). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=QKLS
Highlights from our QKLS Report include:
- Revenue & Sales Figures - According to a Yahoo Finance news update dated May 15, 2015, QKL Stores Inc. released its financial results for the first quarter ended March 31, 2015. Posting decent quarterly growth, the Company reported its revenues as $92.6 million, marking an increase of 7.7% YoY. The Company's same store (42 stores) sales generated c. $79.6 million in sales as compared with $80.3 million in net sales in Q1 2014.
- Profitability Margins - Gross profit rose by 4.1% YoY to $15.3 million, or 16.5% of net sales, from $14.7 million, or 17.1% of net sales, reported in Q1 2014. The increase in gross profit was largely attributable to an increase in net sales of $6.6 million in Q1 2015 compared to Q1 2014. Net loss came in at $4.6 million or $3.01 per diluted share, as compared to $3.1 million or $2.01 per diluted share in the corresponding quarter prior year. Further, the number of shares used in the computation of diluted EPS was 1,522,326 for the first three months of 2015 and 2014.
- A Round Up on Expenses - Selling expenses were $16.3 million or 17.6% of net sales in Q1 2015, versus $13.3 million or 15.4% of net sales in Q1 2014. Labor costs increased by 15.4% YoY to $6.0 million in Q1 2015 from $5.2 million reported in Q1 2014. Promotion expenses increased by 50.0% YoY to $1.5 million in Q1 2015 from $1.0 million reported in Q1 2014. The Company's general and administrative expenses decreased by 21.9% YoY to $2.5 million in Q1 2015 from $3.2 million reported in Q1 2014. This decrease was mainly due to the control of administrative expenses.
- CEO's Rationale - Commenting upon the results, Mr. Zhuangyi Wang, Chairman and CEO stated that the Company finished the first quarter closing down two stores and operating a total of 47 stores, comprising of 26 supermarkets, 17 hypermarkets and 4 department stores. He further stated that the Company would be opening up two new stores in H2 2015.
To find out how this influences our rating on QKL Stores Inc., read the full report in its entirety here: http://www.aciassociation.com/?c=QKLS
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