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Hurricane impacts third-quarter sales at Publix

Bottom line gets lift from tax cut, new accounting rule

Russell Redman

November 1, 2018

2 Min Read
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Publix Super Markets Inc. said revenue and same-store sales growth in the third quarter took a hit from last year’s Hurricane Irma.

For the quarter ended Sept. 29, sales totaled $8.8 billion, rising 3.2% from $8.5 billion a year earlier. Comparable-store sales inched up 0.6% year over year, the southeastern U.S. grocer reported on Thursday.

Publix noted that sales growth for the 2018 third quarter, compared with the prior-year period, came in 3.1% lower because of the impact of Irma in September 2017. Excluding the effect of the storm, sales in the 2018 quarter would have climbed 6.3%, while comp-store sales would have been up 3.7%.

“In the last six weeks, many of our associates and customers have faced difficult times with Hurricanes Florence and Michael,” Publix President and CEO Todd Jones said in a statement. “I’m proud of our associates for their extra efforts and pleased with our team’s results.”

On the earnings side, third-quarter net income rose to $677.7 million, or 94 cents per share, from $474.9 million, or 63 cents per share, a year ago. Publix said the increase reflects a lower federal income tax rate from the Tax Cuts and Jobs Act as well as a positive impact from a new accounting standard that requires net unrealized gains and losses in the fair-value measurement of equity securities to be recognized in earnings.

Excluding the effect of the new accounting standard, net earnings would have been $582 million, or 80 cents per share, for the 2018 quarter, according to the company.

Publix’s stock price edged up to $42.70 as of Nov. 1 from $42.55 a year earlier. The employee-owned company’s stock isn’t publicly traded.

Overall, Publix operates 1,207 stores in Florida, Georgia, Alabama, Tennessee, South Carolina, North Carolina and Virginia.

Last week, the company announced that Kevin Murphy, senior vice president of retail operations, will add the title of president effective Jan. 1, 2019. With Murphy’s promotion, Jones will relinquish the president’s title. The move could put Murphy in line for the CEO slot, as Jones succeeded the retiring Ed Crenshaw as CEO in May 2016 after having been promoted to president in 2008.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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