US retailer Winn-Dixie posted a 10% increase in third-quarter profit yesterday (11 May) and raised its guidance for the year.
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The retailer earned US$16.6m for the three-month period, from a net income of $15m in the previous year.
Net sales reached $1.7bn, an increase of $3.1m compared to the prior year period. Identical store sales from continuing operations increased 0.2% compared to the same period in the prior fiscal year and were impacted negatively by around 100 basis points due to the timing of the Easter holiday.
Adjusted EBITDA in the third quarter was $57.5m, including a charge of $1.2m,
Winn-Dixie chairman, CEO and president Peter Lynch, said: “I am very pleased with our financial performance this quarter, which reflects our success maintaining an appropriate balance between sales and gross margin.”
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By GlobalDataHe added: “We are on track with our long-term initiatives, including our store remodelling programme and merchandising and marketing strategies. I remain confident that we have the right strategies in place to generate sustainable long-term sales growth and profitability by offering customers better quality, service and value for their shopping dollars.”
As of the end of the third quarter, the company had completed 127 store remodels, 74 of which were still within their first year of operation.
The company said it now expects adjusted EBITDA in fiscal 2009 to be between $145m to $152m, an increase from its previous estimate of $110m to $125m.
This includes a $12m reduction in the estimated full-year LIFO charge to $19m from the previous estimate of $31m.
