US retailer Winn-Dixie Stores has boosted annual profits through cost-cutting, remodelling efforts and a drop in promotional activity.
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For fiscal 2009, net income reached US$39.8m compared to net income of $12.8m in the prior fiscal year.
For the quarter ended 24 June, net income reached $9.4m compared to a net loss of $5.5m in the same period last year.
Full-year adjusted EBITDA was $164.2m, an increase of $62.4m driven by higher sales and gross profit margin.
Winn-Dixie chairman, CEO and president Peter Lynch said: “During fiscal 2009, we made significant progress in executing on the fundamentals. Our merchandising and marketing programmes delivered strong results, enabling us to increase both sales and gross margin, despite the challenges posed by the economy.”
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By GlobalDataNet sales in the fourth quarter increased by $85.5m to $7.4bn compared to the prior fiscal year, with identical-store sales from continuing operations up 1.2% compared to the prior fiscal year.
Winn-Dixie continued to make progress with its store remodelling programme, which it started in the second half of fiscal 2007. The company said it is on-track to remodel roughly half of its stores by the end of fiscal 2010 and “substantially” all of its stores by the end of fiscal 2013.
The company reiterated its adjusted EBITDA guidance for fiscal 2010, to be in the range of $170m to $180m.
Winn-Dixie continues to expect that full-year fiscal 2010 identical-store sales growth will be in the range of 1% to 2%.
