Roundy's Q2 Sales Slip
Roundy’s Inc. reported net sales of $980.3 million for the second quarter of its 2013 fiscal year, a 1.7 percent drop from the year-ago period that management is chalking up to weaker-than-expected same-store sales.
“During the second quarter, same-store sales results in our core markets did not meet our performance goals," said Robert Mariano, Roundy's president, CEO and chairman. "Although the calendar shifts of the Easter and July Fourth holidays contributed to the overall weakness in the quarter, our results were primarily affected by the challenging competitive environment, unfavorable spring weather conditions compared to the prior year and a continued soft economic climate in our core markets. The result was a continued price-conscious and cautious consumer."
Year to date, net sales are up 1.5 percent to $1.96 billion.
“Despite the weaker than anticipated performance of our core stores, our Mariano’s banner continues to show strong sales and profitability trends," Mariano said. "We continue to expand our store footprint, with 11 Mariano’s stores in the Chicago area and two more locations scheduled to open before year's end. We will continue to invest in the Mariano’s banner and we anticipate five additional store openings in the Chicago area in 2014.”
Mariano’s added two new stores during Q2 and average weekly net sales per store for all Mariano’s stores for the quarter were slightly over $1 million.
Q2 net income was $13.5 million, or 30 cents per common share, compared to $18.9 million, or 42 cents for the year-ago period. Gross profit decreased 0.9 percent to $265.2 million, from $267.7 million in the same period last year. Operating and administrative expenses increased to $231.3 million, from $224 million in the same period last year.
The company updated its guidance for fiscal 2013, including adjustments to anticipated net sales growth from 1.5 to 2 percent and same-store sales growth adjusted down to 2.25 percent from 2.75 percent.
Milwaukee-based Roundy’s operates 161 retail grocery stores and 100 pharmacies under the Pick ’n Save, Rainbow, Copps, Metro Market and Mariano’s retail banners in Wisconsin, Minnesota and Illinois.