US supermarket operator Spartan Stores reported an increase in full-year profits, despite sales remaining flat for the period.
The company announced yesterday (11 May) that net earnings rose to US$32.3m for the year, against $25.5m for the previous year.
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Sales were down 0.7% to US2.35bn, which the retailer attributed to “continuing adverse regional economic conditions and competitive pressures”, which were partially offset by higher fuel selling prices. It also said that sales were down $13m due to stores that were sold or closed during 2010.
Fourth-quarter net income almost doubled to $7.7m, up on the $3.2m reported in the same period of 2010.
It said that operating earnings increased 80% to $15.9m, against $8.9m in the same period of the previous year. Excluding a series of one-off charges and restructuring costs, fourth-quarter earnings were up 17.5% to $16.1m.
Sales for the quarter were up 2.3% to US$571.5m, with both the retail and distribution divisions posting growth.
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By GlobalDataThe company said it is expecting its positive sales trends to continue improving in fiscal 2012 as it expects the Michigan economy to continue to “slowly improve”, said president and CEO Dennis Eidson.
He also expects the retailer to experience a “moderate level of overall product cost and retail price inflation” which will result in a significant increase in LIFO expense for the year. However, the company remains “optimistic” about its outlook for continued improvement in its operating results.
