CARTERET, N.J. -- Pathmark Stores here said last week that its gains in sales and market share for the second quarter ended Aug. 2 resulted from better in-store and marketing performance.
m its previously announced store-labor buyouts and corporate-offices staff reductions.
However, Scott added, these savings are being offset by medical, pension and general liability costs that are higher than those Pathmark experienced in last year's second quarter.
Pathmark said it expects to spend $95 million on capital investments in fiscal 2003, including cash investments of $76 million. In the first half, the company opened one store, closed two stores and renovated three stores. In the second half, Pathmark said it expects to open two stores (one a replacement), close one store and complete 17 renovations.
In the 13-week second quarter, net income jumped 77.1% to $6.2 million, on sales gains of 0.8%, to $995.6 million, compared with the year-ago results. Same-store sales grew 0.6%. Pathmark noted that the quarterly results included a $7.2 million net gain from the sale of real estate and a $1.8 million net charge relating to the labor buyout program.
In the 26-week first half, net income grew 26.8% to $7.1 million on sales of $2 billion, an increase of 1.8% over the previous year's first-half results. The company said this year's first half's results included an $8.2 million net gain from real estate sales along with a $4.9 million net charge for the labor buyout and staff reduction programs.