Jacksonville, Fla. Winn-Dixie Stores reported Wednesday that it recorded a profit of $2.1 million in the quarter ended Jan. 6, compared with a profit of $16.1 million in the year-ago period. The grocery retailer cited a non-recurring gain on an insurance settlement of $22.4 million in a year earlier as reason for the negative swing in the current period.
Sales for the quarter were $2.2 billion, down 3.3% from the prior year. Same-store sales dropped 2.9%.
“The challenging economic environment and deflationary pressures continue to impact sales for the entire supermarket industry,” said Winn-Dixie chairman, CEO and president Peter Lynch. “It is clear that consumers remain very cautious with their spending, which has influenced our sales across the chain….”
Winn-Dixie said it will remodel a total of 60 stores in fiscal 2010.
The grocer’s capital expenditures for fiscal 2010 are now expected to be approximately $200 million, a $20 million decrease from its prior expectation.