Rocky Mountain Chocolate Factory, headquartered in Durango, reported this week that net profit decreased 19.1 percent to $751,000 in the three months that ended Aug. 31 compared with net profit of $928,000 for the three months that ended Aug. 31, 2017.
Net profit for the three months ending Aug. 31 came to 13 cents per share, that compared with 16 cents per share in the three months ending Aug. 31, 2017, according to a news release issued Thursday.
RMCF retail sales dropped to $2 million in the six months ending Aug. 31 compared with $2.2 million in the six months ending Aug. 31, 2017.
The decrease in retail sales was primarily attributed to the closure of underperforming company-owned locations. Same-store sales at all company-owned stores and cafés decreased 0.1 percent during the six months ending Aug. 31 when compared with the six months ending Aug. 31, 2017.
Royalty and marketing fees decreased 4.1 percent in the three months ending Aug. 31, primarily because of a 10.2 percent decrease in the number of domestic franchised locations in operation, primarily a decrease in yogurt locations, when compared with the same period in 2017.
Franchise fees decreased 34 percent, primarily because of a decrease in international license fees in the three-month period when compared with the same period in 2017.
The chocolatier’s franchisees and licensees opened three domestic Rocky Mountain Chocolate Factory franchises, one domestic U-Swirl franchise and one international Rocky Mountain Chocolate Factory location during the three-month period.
On Sept. 14, 2018, RMCF paid a quarterly dividend of 12 cents per share, its 61st consecutive quarterly dividend to shareholders.
RMCF’s combined federal and state income tax rate in the three months ending Aug. 31 was 26.8 percent compared with 37.1 percent in the same period in 2017. The change is the result of the lower U.S. corporate tax rate of 21 percent enacted under the Tax Cuts and Jobs Act.
Rocky Mountain Chocolate Factory Inc. is an international franchiser of gourmet chocolate, confection and self-serve frozen yogurt stores and a manufacturer of premium chocolates and other confectionery products.
As of Thursday, RMCF, through its subsidiaries and its franchisees and licensees, operated 450 Rocky Mountain Chocolate Factory and self-serve frozen yogurt stores in 38 states, Canada, South Korea, Qatar, Panama and the Philippines.
RMCF’s common stock is listed on NASDAQ under the symbol “RMCF.” The chocolatier’s stock finished Friday at $9.81.