Skip to main content

Pathmark Cuts 3rd-Quarter Outlook

CARTERET, N.J. - Pathmark Stores Inc. on Tuesday cut its third-quarter earnings outlook, citing weaker-than-expected economic conditions.

The Carteret, N.J.-based retailer said it expects to post results ranging from earnings of one cent a share to a loss of three cents, below its previous outlook for earnings of nine cents to 17 cents a share.

Pathmark expects earnings before interest, taxes, depreciation and amortization, or Ebitda, of $37 million to $39 million in the third quarter, below its previous view for Ebitda of $43 million to $47 million.

Total sales and same-store sales fell 1 percent and 2.6 percent, respectively, in the quarter.

"Declining consumer confidence and weak economic conditions impacted consumer spending, which affected our third-quarter sales performance," said Eileen Scott, Pathmark's new chief executive who replaced Jim Donald.

"We have taken steps to improve our sales trends, accelerate expense reduction initiatives and are taking a more cautious approach to near-term capital investments," Scott added.

For the year ending Feb. 1, Pathmark expects to report Ebitda of $175 million to $180 million, and earnings per share of 42 cents to 52 cents.

Same-store sales for the year are expected to fall 1 percent to 1.5 percent.
This ad will auto-close in 10 seconds