JACKSONVILLE, Fla. -- Winn-Dixie Stores here said aggressive pricing and promotional programs helped boost sales while depressing earnings for the year and fourth quarter ended June 24.
-- while average store sales for the year increased 3% and identical-store sales declined 0.3%. Net earnings fell 2.8% for the year to $198.6 million.
For the 12-week quarter, sales rose 6.2% to $3.3 billion, while average store sales rose 7% and identical-store sales increased 3.1%. Net income for the quarter fell 35.1% to $34 million.
According to A. Dano Davis, chairman, "Our emphasis is to improve our sales trend, and we are pleased to see increases in sales and identical-store sales for the quarter.
"We know profit was sacrificed on a short-term basis to generate increased sales, and we will continue our sales drive."
The company said it had a non-recurring administrative charge totaling $11 million after taxes due to several factors: beginning the process of consolidating all division accounting departments to corporate headquarters; opening a new distribution facility in Raleigh, N.C., that resulted in the closing and sale of an older facility there; closing a distribution facility in Greenville, S.C., and converting it to a general-merchandise warehouse; and reorganizing its Raleigh and Charlotte divisions.
During the year, the company said, it opened or acquired 84 new stores averaging 50,000 square feet; closed 90 older locations averaging 30,500 square feet; and enlarged or remodeled an additional 136 stores.
