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.
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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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