New Stores Lift Publix Q1 Sales; Earnings Climb

Sales improved by 4.3% and comps were up by 1.9% in the fiscal first quarter at Publix Super Markets.

The Lakeland, Fla.-based food retailer posted revenues of $9.7 billion for the period ended March 30. Its estimated sales in the quarter were negatively affected by about 1.2% by a shift of Easter holiday sales from the first quarter last year to the second quarter this year. Publix opened six new stores during the period, including two replacement stores, which helped trigger the sales increase, while comps were supported by higher pricing, the company said in a filing. Gross profit was 28% of sales in the quarter, flat with the same period last year.

Net earnings were $981 million, an increase of 44.2% from 2018, and earnings per share increased to $1.37 from 93 cents last year. Excluding the impact of net unrealized gains on equity securities in 2019 and net unrealized losses on equity securities in 2018, net earnings for the three months would have been $741.7 million, or an increase of 5.3%. Earnings per share would have been $1.04, compared to 96 cents in 2018’s first quarter.

Publix said it adopted a new accounting standard in the first quarter that changed the way it accounted for operating leases. The new standard required the company to recognize $2.9 billion of operating lease rights and obligations as assets and liabilities on its balance sheet.

Effective May 1, Publix’s stock price increased from $42.85 per share to $44.75 per share. Publix stock is not publicly traded and is made available for sale only to current Publix associates and members of its board of directors.

“I’m proud of our results and pleased with our stock price increase,” Publix CEO Todd Jones said in a release. “I want to thank our associates for delivering premier customer service that makes shopping at Publix a pleasure.”