MONTVALE, N.J. -- A&P here said last week earnings for the 12-week second quarter ended September 9 would be below earlier expectations. The company said it plans to report second quarter results October 2.
d with the company's renewal initiatives in both years, A&P said it expects to report a loss of 14 to 16 cents per share, contrasted with an income of 14 cents per share in 1999.
The company also said total sales for the second quarter are expected to increase approximately 7%, with comparable -store sales rising 1.5%.
Christian Haub, A&P president and chief executive officer, said, "We are disappointed with our financial results this quarter."
He attributed the results to three factors:
A tougher selling environment, resulting in lower than expected comparable-store sales growth.
Higher than expected selling, general and administrative expenses.
Recently built and acquired stores not performing as well as anticipated.Haub also said, "On a positive note, we made major progress in this quarter on our Great Renewal II initiatives, which continue to run on time and on budget, and we are pleased that the Atlantic region, which we formed earlier this year, is coming together well. Our recent management changes leave us better prepared for the challenges we face. We remain confident that our strategies will make A&P stronger and more profitable in the long-term.