Net income was another matter. In the second quarter of '05, net income for the company was $80.1 million, or 0.4% below the same period last year. Net income for the first half of 2005 was $134.5 million, or 6.5% below net income of the first half of 2004. "Sales of lower-margin basic consumables continued to be stronger than sales of higher-margin discretionary goods," noted George Mahoney, EVP, during Tuesday's earnings conference call, offering a partial explanation for the disparity between good comps and weaker net income.

"Net income for the quarter was basically flat," said R. James Kelly, vice chairman and CFO, but he added that the Q2's numbers were actually signs of a positive trend for the company. "After two down quarters, it was good to reverse that trend," he said. "We're on the right track to turn income around even more in the future."

Still, that growth will represent an uphill struggle. "Our customers continue to face a challenging economic climate, which includes high energy prices," said Kelly. "We would prefer a more positive environment for them, but our comp growth in the second quarter supports our thesis that with only a 1% to 2% share of our customers' pocketbooks, we can improve sales."