BRUSSELS — Banking on momentum from recent moves to cut costs and invest in price, Delhaize Group here forceast operating profit of 7% to 10% in fiscal 2010 — an increase from 2009 full-year operating profits of 4.6% that the retailer reported Thursday.
The company reported U.S. sales of $19 billion and operating profit of $1 billion for fiscal 2009. Excluding a 53rd week in fiscal 2008, margins improved to 5.7% of sales and operating profits increased 1.6% to $1.08 billion. Sales for the year were down 1.3%.
For the fourth quarter, sales were down 8.5%, to $4.7 billion, and comparable-store sales were down 2.8%. Officials attributed the sales declines in part to lapping a quarter of 6.5% retail food inflation with 2.1% deflation in 2009. Retail prices decreased faster than costs, however, as the company made price investments at the Hannaford Bros. and Food Lion banners.
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