Roundy’s swings to Q2 loss on closure costs

Milwaukee – Costs related to the exit of its Rainbow business in the Twin Cities markets, as well as the upcoming closure of a distribution center, helped push Roundy’s Inc. to a net loss in the second quarter of fiscal 2014. Roundy’s reported a net loss of $13.5 million, compared to net income of $11.6 million.

Net sales from continuing operations for second quarter 2014 were $971.9 million, an increase of 12% from $868.3 million for second quarter 2013. Same-store sales dropped 2.2%.

During the quarter, Roundy’s sold 18 Rainbow stores and closed the remaining nine not included in the sale, incurring an impairment charge. Roundy’s is also closing a distribution facility in Stevens Point, Wisconsin in the third quarter of the fiscal year, which has already incurred some costs.

Roundy’s expects to report net losses per share and negative same-store sales growth for the third quarter and full fiscal year 2013.

 

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