Winn-Dixie 2Q sales, earnings down
JACKSONVILLE, Fla. Winn-Dixie Stores reported that net sales in the second quarter were $2.2 billion, a decrease of $74.5 million, or 3.3%, compared with the same period in the prior fiscal year.
Identical-store sales, which exclude stores that opened or closed during the quarter, decreased 2.9% for the second quarter compared with the same period in the prior fiscal year.
Net income in the second quarter of fiscal 2010 was $2.1 million, or 4 cents per diluted share, compared with net income of $16.1 million, or 30 cents per diluted share, in the second quarter of fiscal 2009. According to the company, the decrease in net income was due primarily to a non-recurring gain on an insurance settlement of $22.4 million ($13.8 million net of tax, or $0.25 per diluted share) in fiscal 2009.
Winn-Dixie chairman, CEO and president, Peter Lynch, said, “The challenging economic environment and deflationary pressures continue to impact sales for the entire supermarket industry. Despite negative identical store sales, we are pleased with our overall operating execution during the quarter. In particular, we maintained our gross margin rate through effective management of our promotional activity and reduced our operating expenses.”
Lynch continued, “It is clear that consumers remain very cautious with their spending, which has influenced our sales across the chain, primarily with respect to overall basket size. However, we increased transactions by 4.1% in our first-year offensive remodels compared with last year, and our customers are continuing to respond positively to the changes we are making. Given the prevailing economic conditions, we will continue to be prudent with our capital spending and will selectively remodel a total of 60 stores in fiscal 2010 in locations where we believe we can generate the highest return on our investment.”
Sub-Zero, Wolf products to be featured in HGTV Dream Home
MADISON, Wis. Sub-Zero and Wolf products have been selected as the exclusive kitchen appliances for HGTV’s 2010 Dream Home, the companies announced.
Located in Sandia Park, New Mexico, the HGTV Dream Home Kitchen showcases the latest in kitchen design and innovative kitchen appliances.
This year, the HGTV Dream Home Kitchen features a “green” line up, with three Energy Star rated Sub-Zero refrigerators, each using less energy than a 100-watt light bulb. There is also a Wolf induction cooktop that is 50% more efficient than a regular electric cooktop, and a Wolf oven that is a sustainable product that consumes less energy without reducing performance.
In addition to the Wolf induction cooktop and oven, the kitchen boasts a powerful and flexible lineup of cooking tools, including a Wolf steamer, gas cooktop, and a drawer microwave oven. The home features appliances outside the kitchen as well, with a Wolf warming drawer in the master bathroom and a Wolf outdoor grill on the patio.
Some modest growth online
Any growth is better than no growth, and that’s pretty much what the retail industry got online during the fourth quarter, as sales advanced 3% to $39 billion, according to online measurement firm comScore. The online retail industry is now essentially even with where it was in the fourth quarter of 2007, and the recent 3% gain is good news, given that sales in the previous four quarters were either flat or down. However, the resumption of growth didn’t benefit all market participants equally, as comScore singled out Walmart and Amazon as market share gainers. Total e-commerce spending for the year declined slightly to $129.8 billion, as the 3% fourth quarter gain was offset by flat first-quarter sales, a 1% second-quarter decline and a 2% third-quarter decline.