MILWAUKEE — Roundy’s here said Thursday that second-quarter results were below expectations, primarily due to difficult competitive and economic conditions.
Net income for the quarter, which ended June 29, was down about 28.6%, to $13.5 million, and sales were down 1.7%, to $980.3 million.
The sales decrease was primarily driven by a 5.8% decrease in same-store sales and the effect of three store closures, partially offset by the benefit of new stores. The same-store sales decline included a 6.3% decrease in the number of customer transactions, partially offset by a 0.6% increase in average transaction size.
“During the second quarter, same-store sales results in our core markets did not meet our performance goals,” said Robert Mariano, chairman, president and chief executive officer of Roundy’s, which operates the Pic ’n Save banner in Wisconsin and the Rainbow banner in Minneapolis. “Although the calendar shifts of the Easter and July 4th holidays contributed to the overall weakness in the quarter, our results were primarily affected by the challenging competitive environment, unfavorable spring weather conditions compared to the prior year and a continued soft economic climate in our core markets. The result was a continued price-conscious and cautious consumer.”
The company’s up-market Mariano’s banner in Chicago continued to perform well, Roundy’s said, with average weekly sales per store of “slightly over $1 million.”
Through the first 26 weeks of the fiscal year, Roundy's reported net income of $22.1 million, up slightly from the year-ago period, which included a one-time charge of $8.4 million. Excluding that charge, year-ago net income was $29.5 million.
Sales for the first half of the fiscal year were just under $2 billion, up 1.5% vs. a year ago. Same-store sales were down 2.3% for the half-year period, including a 5.1% decrease in the number of customer transactions, partially offset by a 2.9% increase in average transaction size.
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