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Fairway posts $8.8M loss in Q4
Fairway Group Holdings reported a loss of $8.8 million on sales of $200.3 million in the fourth quarter, which ended March 30.
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Fairway Group Holdings reported a loss of $8.8 million on sales of $200.3 million in the fourth quarter, which ended March 30.
Sales increased by 12.1% overall, due to new stores and the incremental effect of having its Red Hook store open for the entire quarter, versus four weeks last year when it reopened following repairs from Hurricane damage.
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Adjusted for the Red Hook opening, sales grew by 4.8%, while comparable-store sales decreased by 1.9%. The company said comps declined due to severe winter weather, the shift of the Easter and Passover holidays from the fourth quarter last year to the first quarter this year, and the effect of cannibailization from new locations.
Total sales were slightly above analyst expectations, while profits as a percent of sales of 32.4% fell below expectations.
Officials in a conference call Thursday said the Red Hook store — which typically exceeds $1 million in sales per week — experienced a reduction of around $200,000 in weekly sales due to a competitive opening in Brooklyn. This referred to Whole Foods Markets’ new store in the nearby Gowanus neighborhood.
