VERNON, Calif. -- Smart & Final here reported increased sales and lower earnings for the year and fourth quarter ended Jan. 2.
the quarter to $200.6 million.
The fourth-quarter and full-year period in 1993 had one less week than the year-ago comparable periods. Same-store sales increased 4.7% for the year and 6% for the quarter.
Roger M. Laverty III, president and chief executive officer, said earnings were impacted by changes in accounting procedures. In addition, fourth-quarter earnings were negatively impacted by higher marketing expenditures for a multimedia campaign in the Los Angeles market, which Laverty said should benefit future sales.
Jonathan Ziegler, a securities analyst with Salomon Bros., New York, said the good news in the quarter was the strong same-store sales, which compared favorably with negative same-store results reported by Ralphs Grocery Co., Compton, Calif., Food 4 Less, La Habra, Calif., and Vons Cos., Arcadia, Calif.
The bad news, Ziegler said, was the impact on earnings of the $1 million ad campaign and the aborted effort by Groupe Casino, Smart & Final's French parent company, to sell its stock in the company.
Zielger said Groupe Casino's attempt to sell its shares cost Smart & Final approximately $500,000 for financial advice. Smart & Final opened 16 new stores during 1993, including three in the fourth quarter.