SALISBURY, N.C. -- Food Lion here said its expansion and remodeling program, coupled with an aggressive marketing campaign, boosted earnings for the year ended Jan. 2.
or the 16-week fourth quarter, sales decreased 1.9% to $3.2 billion while same-store sales rose 3.7%. Net earnings for the quarter rose 3.31% to $84.5 million, the company said.
Food Lion said 1998 earnings figures were adjusted to reflect a tax refund and related interest income following an audit and changes in the recording of sales tax related to the company's loyalty-card program. In 1997, the company had an additional week of sales in the fourth quarter and adjusted earnings to reflect store closings.
With these adjustments, 1998 earnings grew 22% on a 6% increase in sales, on a comparable basis. Fourth-quarter volume was up 8% to $3.2 billion and profit climbed 20% on an adjusted basis.
4th-QUARTER RESULTS
Qtr Ended 1/2/99 1/3/98
Sales $3.2 billion $3.26 billion
Change - 1.9%
Same-store + 3.7%
Net Income $84.5 million $87.3 million
Change - 3.31%
Inc/Share 18 cents 19 cents
52 Weeks 1998 1997
Sales $10.3 billion $10.19 billion
Change + 1%
Same-store + 2.6%
Net Income $272.6 million $172.2 million
Change + 58%
Inc/Share 57 cents 37 cents
Does not reflect adjustments the company made for a tax refund and changes in recording sales tax, as listed in the story.
