Publix Details Sales and Profit Lifts in Early Weeks of Pandemic

The declaration of a national emergency for the coronavirus on March 13 generated about $1 billion in new sales in a little more than two weeks for Publix Super Markets Inc., the retailer reported in a financial filing.

Sales for Publix’s fiscal first quarter, which ended March 28, increased by 16.1% to $11.2 billion as compared to last year’s first quarter, while same-store sales in the period jumped by 14.4%. Publix estimated the coronavirus—which triggered nationwide isolation orders and business shutdowns but allowed supermarkets to remain open as essential businesses—accounted for about 10.3% of the sales lift, or about $1 billion.

“Never before have we experienced a more challenging time,” Publix CEO Todd Jones said in a statement. “Our associates’ efforts to serve our customers and communities have been nothing short of extraordinary. I want to thank our associates and couldn’t be more proud to serve alongside them.”

Profits at Publix also benefited as the heavier sales volumes helped to reduce shrink and leverage costs, even as the latter rose significantly. Gross margins in the period increased to 28.4% of sales vs. 28% in last year’s first quarter, while expenses as a percent of sales dipped to 18.9% from 20%. That increased operating profit as a percent of sales to 10.3% in the quarter vs. 8.9% in last year’s period.

Lakeland, Fla.-based Publix, which operates 1,242 supermarkets in seven states, incurred additional payroll- and transportation-related expenses and other costs to meet the significant sales demand and protect the health and safety of its employees and customers. “The profit on the incremental sales resulting from increased customer purchases of food and cleaning supplies more than offset the additional costs incurred,” the filing said.

Net earnings of $667.3 million in the quarter decreased 32% from last year’s first quarter due to the impact of unrealized losses on equity securities in the period. Excluding those losses, net earnings would have totaled $952.2 million, a 28.9% improvement.

Effective May 1, Publix’s stock price increased from $48.90 per share to $50.10 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.