US: Winn-Dixie profits boosted by insurance payments
US retailer Winn-Dixie saw its earnings increase almost four-fold for the second quarter as a result of resolved insurance claims and an adjustment in its self-insurance reserves.
The Jacksonville-based grocer earned US$16.1m compared with $4.1m during the same period last year. Profits included a gain of $22.4m from insurance claims from the 2006 hurricanes.
Revenues remained flat at $2.25bn.
For the 16-week period to 7 January, net sales grew 0.14% to nearly $2.3bn compared to the same period in 2008. Identical-store sales increased 0.2% during the same time, primarily due to federal assistance given to communities affected by Hurricane Gustav, the company said.
For the 28-week period ended 7 January, Winn-Dixie posted a net income of $13.8m, up from $3.3m in the same period a year earlier.
Winn-Dixie chairman, CEO, and president, Peter Lynch, said: "It is clear that consumers remain cautious with their spending, which had an impact this quarter on our identical store sales, and on basket size in particular. As economic conditions develop, we will remain flexible in our approach as we seek to maintain an appropriate balance between sales and gross margin."
The company said it is maintaining its previously-issued guidance range of $110-$125m in adjusted EBITDA for fiscal 2009.
Higher fourth-quarter earnings has led US retailer Winn-Dixie Stores to raise its full-year profit forecast ahead of its annual results next month....
Winn-Dixie Stores has completed remodels and upgrades on 51 of its namesake stores in the Jacksonville area, comprising locations in north Florida and south Georgia....
US retailer Winn-Dixie posted a 10% increase in third-quarter profit today (12 May) and raised its guidance for the year....
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