Supermarket group Albertson’s has reported a fall in net earnings for its third quarter 2005 which ended 3 November 2005.
Reported third quarter earnings from continuing operations totalled $81m although when adjusted for the impact of the three hurricanes that hit Louisiana, Texas, and Florida during the quarter, earnings from continuing operations totalled $91m. In the prior year’s third quarter, earnings from continuing operations totalled $107m. After adjustment for the impact of four 2004 hurricanes that hit Florida, earnings from continuing operations were $117m.
During the third quarter, total sales were $9.95bn, versus $9.974bn a year ago.
Gross margin in the quarter increased 19 basis points to 28.12% versus last year’s third quarter at 27.93%. This increase was primarily the result of modifications to the Check the Price program, improved pharmacy margins and shrink reduction. Selling, general and administrative expenses as a percent of sales were 25.57%, up 36 basis points from last year’s third quarter. This increase was primarily the result of gains from the disposal of property during the third quarter of last year. The Company stayed on track to meet its $1.25 billion cost reduction goal by the end of fiscal year 2006, recording $71 million in new cost reductions during the third quarter of 2005, bringing the total cost reduction achieved since mid-2001 to $1.156 billion.
During the quarter, 7 new stores were opened, 18 were closed and 41 remodels were completed. A total of 2,476 stores were open at the end of the quarter.
Reported net earnings year-to-date reached $284m versus $249m in the prior year. Net earnings from continuing operations for fiscal year 2005 year-to-date grew to $298m versus last year’s results of $288m.
Total sales year-to-date reached $30.1bn versus $28.8bn last year.