US retailer Winn-Dixie Stores appears on the road to recovery after it lessened losses in its first quarter.
The Florida-based company reported a net loss of US$24.1m for the quarter ending 21 September, an improvement from a net loss of $76.8m for the same period last year. Adjusted EBITDA was $7.4m, up from a $6.8m loss in the first quarter last year.
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Net sales were up 3.1% at $1.59bn. Identical-store sales increased 3.3%,
The company reaffirmed its adjusted EBITDA guidance range of $120m to $135m for fiscal 2012 but shares in the company dropped 3.8% to US$6.34 as of 12.50 GMT.
Nevertheless, Winn Dixie chairman, CEO and president Peter Lynch said: “I am very pleased with our first quarter financial performance. We generated substantial sales and adjusted EBITDA growth over the prior year, driven by continued positive sales growth from the previous quarter and expanded margins despite an inflationary environment.
“Through the first five weeks of the second quarter, we continue to experience identical store sales growth that has exceeded our first quarter performance, in line with our expectations.”
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