CHARLOTTE, N.C. — E-commerce and global sales drove Krispy Kreme Inc.'s results for the second quarter ended July 2, as the company's aggressive omnichannel, hub-and-spoke distribution It continued the trend seen from the expansion. In the quarter, Krispy Kreme's global access locations increased 12.8% year over year to 12,872 locations, and international sales per hub increased 3%.
U.S. net revenue increased 9.3% to $22.8 million, and organic revenue increased 12.7%, primarily driven by e-commerce sales. Internationally, net revenue increased 4.8% year over year. The company attributed this to higher prices and an increase in access points of 245 (7%). E-commerce as a percentage of retail sales increased by 260 basis points.
Charlotte-based Krispy Kreme executives reaffirmed their previous outlook for full-year 2023 net revenue of $1.65 billion to $1.68 billion, or an increase of 8% to 10%. Organic revenue growth is expected to be in the range of 9% to 11%.
“We are proud of the results we achieved in the second quarter, reflecting our continued focus on expanding our hub-and-spoke model, with an emphasis on omnichannel and DFD (Delivered Fresh Daily) capabilities, and international service. “Our expansion strategy is strengthened by our expansion strategy,” said Chief Executive Officer Mike Tatterfield. “We delivered the strongest and largest National Donut Day in history, now celebrating the day in 12 countries. We also opened three new markets in Chile, Jamaica and Costa Rica during the quarter. We are also pleased with our continued global expansion, as both exceeded our revenue growth targets.”
During the second quarter, Krispy Kreme invested $27.7 million in capital expenditures, representing 6.8% of revenue, to support growth in Hot Light Theaters, Cookie Shops and DFD Doors.
Net income for the second quarter ended July 2 totaled $223,000, compared with a loss of $3.85 million in the year-ago period. Total net revenue increased 9% to $408.9 million, and product sales increased $400 million from $367 million in the year-ago period.
“We look forward to building on our strong start to the year and delivering profitable growth in the second half of 2023, while focusing on our capital-efficient hub-and-spoke model and omnichannel strategy,” said Tattersfield. Stated. “We plan to open in 3-5 more markets in 2023, most recently in Switzerland, which will be our first store opening in continental Europe, with France to follow by the end of the year. We continue to expand our global access points and continue on our path to becoming the world's most loved confectionery brand.”
