US retailer A&P reported a wider loss in its year-to-date figures today (12 January), as a result of lower margins and one-time charges.
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For the 40 weeks ended 5 December, the New Jersey-based company’s losses from continuing operations widened to US$622.9m compared to $5.3m in the previous year.
The figure included charges of $412m for goodwill, trademark and long-lived asset impairment and $25m for mark-to-market adjustments related to financial liabilities.
Sales for the 40 weeks year-to-date dropped to $6.8bn from $7.2bn in 2008. Comparable-store sales decreased 4.2%.
Excluding non-operating items, adjusted EBITDA also dropped, reaching $180m from $241m last year.
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By GlobalDataChristian Haub, executive chairman of the board, said: “The US food retail market continues to face one of the most difficult and challenging environments in many years which analysts expect will extend through the first half of 2010. Unemployment, deflation and the resulting price competition combined with consumers’ drastic changes in spending behaviour has severely impacted both our industry and our business.”
Net loss for the third quarter widened to $559.6m, compared with a net loss of $14.4m a year ago. The result included an asset impairment charge of $412.6m.
Revenue for the quarter fell 7.5% to $1.96bn.
