WINN-DIXIE SALES RISE 2% TO RECORD FOR YEAR

JACKSONVILLE, Fla. -- Winn-Dixie Stores here said new-store development and store-remodeling helped the chain achieve record sales of $11.1 billion in the year ended June 29.

nnual sales increase would have been 4.3%.

Winn-Dixie's net earnings declined 8.6% in 1994 to $216.1 million, which the chain attributed to a higher effective tax rate, accelerated capital spending and the extra week in fiscal 1993.

Despite Winn-Dixie's annual sales increase, Albertson's, Boise, Idaho, has overtaken the Florida-based chain as the nation's fourth-largest grocery retailer with sales volume of $11.3 billion in the year ended Feb. 3.

Winn-Dixie reported same-store sales increases of 2% and 2.2% for the year and fourth quarter, respectively.

A. Dano Davis, chairman of Winn-Dixie, said sales results "warrant" the company's commitment to its new-store and store-enlargement programs. "We are looking forward to fiscal 1995 when we anticipate opening over 70 new stores and enlarging or remodeling 100 locations to better serve our customers," he said.

As part of its focus on upgrading stores, Winn-Dixie enlarged or remodeled 87 stores last year, opened or acquired 60 new locations averaging 43,500 square feet and closed 66 stores averaging 26,300 square feet.

Gary Vineberg, a securities analyst at Merrill Lynch, New York, said Winn-Dixie's fourth-quarter earnings of 87 cents per share were better than the 80- to 85-cent range Wall Street had projected.

Lower interest expense and a larger-than-expected inventory credit of $11 million contributed to the improved earnings, Vineberg said. On an operating basis, fourth-quarter earnings were in line with expectations.

YEAR-END RESULTS

Qtr Ended 6/29/94 6/30/93

Sales $2.59 billion $2.69 billion

Change -3.9%

Same-store 2.2%

Net Income $64.4 million $82.8 million

Change -22.2%

Inc/Share 87 cents $1.10

Year 1994 1993

Sales $11.08 billion $10.83 billion

Change 2.3%

Same-store 2%

Net Income $216.1 million $236.4 million

Change -8.6%

Inc/Share $2.90 $3.11