Dairy Sale Impacts Stater Bros. Q1 Results

SAN BERNARDINO, Calif. — The sale of Stater Brothers' milk plant contributed to lower overall sales but higher net earnings during the fiscal quarter, the retailer here said.

For the quarter ended Dec. 27, Stater said supermarket sales declined by 1.1% and comparable store sales fell 2.2%, reflecting cautious consumer spending. Consolidated sales of $959.3 million declined by 3.6% from the same period a year ago, with the sale of the milk plant to Dean Foods, which took place during the quarter, accounting for the majority of the sales decline. The sale produced an after-tax gain of $4.7 million as quarterly net income increased 91.4% to to $6.7 million.

"Our economy continues to have a negative effect on the family budgets of our customers," Jack Brown, chairman of Stater Bros., said in a statement. "Our emphasis in these tough economic times is to retain customers by providing value so our customers get the most out of their shopping dollars while providing them with a friendly and satisfying experience on each and every one of their visits to our supermarkets."

Stater Bros. operates 167 supermarkets in Southern California.

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