SMITH'S FOOD & DRUG SALES DROP

SALT LAKE CITY -- Due to closure of its 34 California stores, Smith's Food & Drug Centers here had a sales drop and a net loss for the first quarter ended March 30.

the California operations, net income for the quarter was $13.3 million. First-quarter sales fell 7.2% to $693.2 million despite the opening of 14 new stores outside California. Same-store sales fell 5.6% for the quarter.

Excluding the California stores, sales rose 6.1% to $620.1 million, and same-store sales fell 2.7% -- in part a result of discontinuing the "Ad Match" program in Arizona, the company said.

The California stores incurred losses connected with additional inventory clearance sales and other expenses affected by the disposal process, Smith's reported.

1ST-QUARTER RESULTS

Qtr Ended 3/30/96 4/1/95

Sales $693.2 million $746.7 million

Change - 7.2%

Same-store - 5.6%

Net Income ($1.2 million) $9.5 million

Inc/Share (5 cents) 37 cents