US grocery retailer Winn-Dixie has warned that it expects to post a loss during the next 12 months as it looks to renovate stores to grow sales.
The company, which runs 520 stores in the south of the country, said costs linked to its turnaround plan would outweigh profits during fiscal 2008.
Winn-Dixie made the forecast yesterday (28 August) upon announcing its full-year results for its last fiscal year. The company posted underlying net EBITDA of US$85.9m, compared to a loss of $27.8m a year earlier. Net sales inched up 1% to $7.2bn.
Chairman, CEO and president Peter Lynch said the last 12 months, during which Winn-Dixie came out of bankruptcy, had been an “important turning point” for the company.
Lynch said: “We built a strong foundation to support the implementation of our five key initiatives: rebuilding trust in our brand, investing capital in our stores, merchandising for the neighborhood, training and developing our associates, and achieving profitable sales.”
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