Diedrich Blames Deeper Losses on Slow Sales, Rising Expenses
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Irvine specialty coffee retailer Diedrich Coffee Inc. posted wider losses for the fiscal first quarter.
The company reported a net loss of $1.1 million, or 9 cents a share, for the three months ended Sept. 20, compared with a net loss of $389,491, or 3 cents a share, a year earlier. Revenue increased 4% to $16.9 million.
Diedrich attributed the larger loss to a variety of factors, including lower sales at stores open at least a year and higher prices for green coffee used in coffee blends. Store operating expenses also rose, primarily from increased benefits for employees at company-owned stores.
Same-store sales declined 0.2% at Diedrich Coffee coffeehouses, 7.1% at Coffee People coffeehouses, and 10.2% at Coffee Plantation stores, Diedrich said.
The stock, which has lost more than 70% of its value this year, closed Friday at $1.19, down 6 cents a share, in Nasdaq trading.
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