MINNEAPOLIS — Slowing inflation and higher investments in marketing programs led to quarterly declines in sales and profits for Nash Finch Co., the distributor here said Friday.
Sales for the 12-week period that ended March 24 were $1.06 billion, down 3.7% from the same period a year ago. Excluding the effect of closed stores, sales fell by 3.1%.
Related story: Nash Finch Sees Inflation Abating
Adjusted net earnings of $6.2 million declined 33.3% as the company experienced “a lag between investments we are making and the the results we believe those investments will deliver,” Alec Covington, Nash Finch’s chief executive officer, said in a statement.
By segments, Nash Finch said military sales of $531.3 million declined by 1.1% due to reduced sales to overseas commissaries. Profits were down in this segment due to increased competition, Covington said.
Sales for the combined retail and distribution segment declined by 6.2% due in part to the sale or closure of six retail stores and a comparable-store sales decline of 4.4%. Higher inflation in the previous quarter and declines in perishable commodity prices pressured profits, the company said.