MONTVALE, N.J. -- A&P here said improved marketing programs helped boost comparable-store sales during the second quarter and first half ended Sept. 12.
alling 0.2% to $2.33 billion for the quarter and 0.6% to $5.41 billion for the half. However, after adjusting for the effect of the Canadian exchange rate, A&P said sales were up 1.3% for the quarter.
Net income dropped 30.1% to $11 million for the quarter and 21.7% for the half. The company said net income was affected by a charge of $2.4 million for tax litigation, which reduced earnings per share by 6 cents in the quarter and the half; last year's second quarter and year-to-date results included an extraordinary charge of 1 cent per share for early retirement of debt.
Christian Haub, president and chief executive officer, said A&P was pleased "with the positive comparable-store sales achieved in both the U.S. and Canada, which came from increased customer count as well as transaction size."
He said comps were positive in all major retail groups, particularly noting Waldbaum's and Super Fresh, "and market share improved in all major markets."
Haub said he attributed the comp-store sales increases to "early results from our programs to improve promotional consistency, customer service and operating standards."
He also said the new-generation superstores A&P has been opening the last three years "are achieving good initial sales and continue to grow above the base sales trend. However, the store-upgrade program is having a negative interim impact on comparative earnings, as store-closing expenses were $4.2 million higher" this year than they were a year ago.
