HANNAFORD SALES RISE 5.8% IN FIRST QUARTER

SCARBOROUGH, Maine -- Hannaford Bros. here said sales increased 5.8% and same-store sales turned positive in the first quarter ended April 2.

e current first quarter, but not in the year-ago second quarter, the company said.

Net income totaled $11.1 million in the quarter, an increase of 13.2% if the effect of an accounting change is excluded from last year's first quarter. Net in the year-ago quarter included a $2.1 million credit for accounting changes.

The same-store sales increase of 2.1% (if the number is adjusted for the timing of the Easter holiday, it was a 0.9% increase) reversed six consecutive quarters of negative same-store sales movement.

Hugh G. Farrington, president and chief executive officer, said the quarter's same-store sales increase continued a same-store improvement trend that began in November. (Same-store sales, however, fell 0.6% in last year's fourth quarter.) Farrington also said Hannaford's lower gross-margin in the quarter was more than offset by lower selling, general and administrative expenses.

Gross margins fell 55 basis points to 24.22% of sales. SGA expense declined 68 basis points to 19.73% of sales.

Farrington said Hannaford firmly believes it must continue to offset lower gross margins with expense reductions if the company is to remain competitive.

1ST-QUARTER RESULTS

Qtr. Ended 4/2/94 4/3/93

Sales $519.1 million $490.6 million

Change 5.8%

Same-store 2.1%

Net Income $11.1 million $11.9 million

Change -6.8%

Inc/Share 27 cents 29 cents