Shares in regional US retailer Fairway Group Holdings tumbled after the company posted sales and earnings that fell short of Wall Street expectations.
The NASDAQ-listed group, which floated in April, saw sales grow in the second quarter of its financial year, increasing 14.1% to US$183.2m for the quarter to 29 September.
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However, the consensus estimate among analysts was for sales to hit $187.3m. Fairway, based in New York, booked a net loss of $12.2m, or $0.30 a share. Analysts had forecast a loss of $0.07 a share.
Same-store sales during the quarter were up 1%. Fairway said calendar effects had had an impact on sales. It cited the holiday overlap of Labor Day and Rosh Hashanah as well as a one-week delay in school openings this year.
However, executive chairman Charles Santoro added: “Our business continued to perform well in the quarter, which was highlighted by same-store sales growth, gross margin expansion, 10% store contribution growth, increased private label penetration and the continued development of our central production center and new store pipeline.”
