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SALES, EARNINGS RISE AT SPARTAN 2004-05-17 (1)
GRAND RAPIDS, Mich. -- Spartan Stores here reported sales of $457 million, an increase of 4.3%, and comparable-store sales growth of 5.4% for its fiscal fourth quarter ended March 27, despite the opening of two Wal-Mart Supercenters in its market."We are capable of generating sales and growth despite supercenters," said Craig C. Sturken, Spartan's president and chief executive officer, in a conference
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JON SPRINGER
GRAND RAPIDS, Mich. -- Spartan Stores here reported sales of $457 million, an increase of 4.3%, and comparable-store sales growth of 5.4% for its fiscal fourth quarter ended March 27, despite the opening of two Wal-Mart Supercenters in its market.
"We are capable of generating sales and growth despite supercenters," said Craig C. Sturken, Spartan's president and chief executive officer, in a conference call. "We are confident we can co-exist with them."
Net earnings of $1.7 million marked Spartan's first profitable fourth quarter in three years, and signaled continuing progress following operational initiatives that began a year ago, he observed.
For the year, Spartan reported sales of $2.1 billion, an increase of 5%, and an operating loss of $6.7 million, vs. a $122.3 million loss in 2003. Spartan reported improved comps in each quarter, secured new long-term debt financing, reduced debt by 41% with proceeds from the sale of non-core assets, and began implementation of improved category management in its stores, Sturken stated.
"These were our top four organization priorities, and we're proud to have made progress on each of them."
For fiscal 2005, Sturken said Spartan will focus on a combination of short- and long-term strategies intended to improve its market position. These include better shrink control, resetting and remerchandising 13 stores, implementation of category management across all product categories, an improved private-label program, and a campaign to establish a "true neighborhood market" brand identity.
"The Spartan brand private label is one of the strongest and widely known private brands in the state of Michigan," he noted, adding that better procurement strategies, product labels, and marketing are on tap for the brand.
The company expects sales to increase 1% to 3%, and comparable-store sales to range between flat and 1.5% in fiscal 2005. Capital expenditures for the year will be around $22 million, Sturken said.
