US retailer Winn-Dixie saw net losses in its fiscal first quarter widen as a result of increasing operating costs and expenses for store remodelling.
Go deeper with GlobalData
For the 12 weeks ended 17 September, the company posted a net loss of US$2.3m, compared to a loss of $0.8m in the first quarter of fiscal 2008.
The Jacksonville-based company reported an increase of 3.4% in net sales to $1.7bn, an increase of $55m.
Identical-store sales increased 3% as a result of Hurricanes Gustav and Ike and Tropical Storm Fay. The company said it benefited from pre-storm purchases and its ability to reopen stores before competitors. This benefit was partially offset by sales losses during temporary closures.
Gross profit on sales in the first quarter was $466.8m, an increase of $20.4m compared to the same period in the prior fiscal year, attributable to product mix changes and operational improvements.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Although the economic conditions remain challenging, we are continuing to provide our customers with better quality and value every time they visit their local Winn-Dixie,” said Peter Lynch, chairman, CEO and president of Winn-Dixie. “Over the longer term, we are pursuing sustainable sales growth and building customer loyalty through initiatives such as our store remodel and corporate brands programmes and our neighbourhood merchandising and marketing strategy.”
The company said it plans to remodel roughly half the chain by the end of fiscal 2010 and substantially all of its stores by the end of fiscal 2013.
