Winn-Dixie Stores recorded a loss in its second quarter, hit by increased competition and the shift from branded to generic pharmaceutical products.
The US grocer yesterday (14 February) recorded a US$24m net loss for the quarter ended 12 January, against a $2.1m profit in the same quarter of the previous year.
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However, losses narrowed when compared to the first quarter, when it recorded a $76.8m loss.
The $2.1m in sales the company recorded was essentially flat compared to the same period of last year. Identical-store sales fell 0.3%.
While Winn-Dixie chairman CEO and president Peter Lynch described the trading environment in its key markets as “challenging”, he added that the company is continuing to manage inflation in key categories as “efficiently as possible, while being mindful of consumers who are particularly cost conscious in this environment”.
The company also announced plans to reduce its capex investment by $26m to $132m. Lynch said that while the “transformational” stores continue to “exceed our expectations”, the company plans to take “a bit more time to refine, construct and launch the next set of these stores”.
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By GlobalDataIt now plans to complete five traditional store remodels and two transformational remodels this year, with the remaining 15 transformational remodels to be completed in the first half of 2012.
The retailer’s share price closed flat yesterday at $6.99 a share.
Click here for Winn-Dixie’s full earnings statement.
