SHEBOYGAN, Wis. -- Schultz Sav-O Stores here said an increased contribution from wholesale operations led to improved earnings for the fourth quarter and year ended Dec. 31.
conversion to franchise units in 1993, combined with the termination of a three-store wholesale customer in northern Illinois during the first quarter of last year.
For the 12-week quarter, the company reported net earnings of $1.6 million, a 14.3% increase. Earnings for the year increased 13.7% to $5.4 million.
Net sales dropped 1.7% to $105.1 million for the quarter and 4.9% to $446.4 million for 52 weeks.
Schultz said that, despite record 1994 earnings, the company's operating performance continues to be adversely affected by underperforming retail stores and charges associated with efforts to replace, close or sell those stores.
The company said it sold one corporate-owned store at the end of the fiscal year and converted it to a franchise unit, and closed another corporate unit early this year, giving it 19 retail supermarkets. The disposal of the two stores is expected to reduce 1995 revenues by $9 million but improve operating expenses, Schultz said.
"We are particularly pleased with the attainment of our stated goal of achieving net earnings of 1.2% of sales," said James H. Dickelman, chairman, president and chief executive officer.
