Net Sales Up for Q4, Year at Roundy’s
Milwaukee-based Roundy’s Inc. saw its net sales rise 1.3 percent to $3.89 billion for its 2012 fiscal year, with a 1.4 percent increase in the period’s final quarter, with sales just shy of $982 million.
“We’re pleased with the progress we made on our customer-centric initiatives in the fourth quarter,” said Robert Mariano, Roundy’s chairman, president and CEO. “These initiatives continue to resonate with our customers as own brand penetration finished the year at a record 21.6 percent, while our perishable sales mix for the quarter was 120 basis points higher than last year. Our team continues to focus on providing our customers with superior quality, service and selection to set us apart from our competition and better position us in the markets we serve.”
Adjusted earnings for the year came in at $47 million or $1.08 per share, versus $48 million and $1.58 in 2011. For Q4, earnings were $8.6 million or 19 cents per share, compared to $9.2 million and 30 cents for the year-ago period.
Mariano said the company’s growth plan for its Mariano’s Fresh Market banner in the Chicago area is on track. “The stores continue to exceed our expectations for both sales and profitability,” he said, noting that five new stores planned for 2013 will bring the banner’s total to 13 this year.
A Q4 2.1 percent decrease in same-store sales was blamed on a drop in the number of customer transactions, partially offset by an increase in average transaction size. The full fiscal year saw a 2.8 percent decrease in same-store sales, which were negatively impacted by the effect of competitive store openings during the past year, as well as the continued challenging economic and promotional environment.
“We are encouraged by our sales trends to-date in 2013, but believe that our results in our core markets will continue to be impacted by a cautious consumer, as well as increased competitive unit growth and promotional activity,” Mariano said. “We remain intently focused on our strategy to deliver the best overall value and service to our customers and to use our cash flow to expand the Mariano’s banner, pay down debt and deliver an attractive dividend to our shareholders.”
Founded in Milwaukee in 1872, Roundy’s operates 160 retail grocery stores and 98 pharmacies under the Pick ’n Save, Rainbow, Copps, Metro Market and Mariano’s retail banners in Wisconsin, Minnesota and Illinois.