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JACKSONVILLE, Fla. -- In its first earnings report since emerging from bankruptcy last November, Southeastern supermarket chain Winn-Dixie Stores, Inc. said yesterday it earned $286.8 million during its full second quarter. However, the grocer lost $9.9 million in the first eight weeks since it emerged from bankruptcy.
Total net sales for the quarter were $1.164 billion, a 9 percent increase from the second quarter of 2006. Identical store sales for the second quarter declined 0.5 percent, primarily as a result of unfavorable comparisons to large sales increases that occurred last year in areas affected by Hurricanes Katrina and Wilma, according to Winn-Dixie. ID sales for the first half of the fiscal year increased 1.8 percent.
As of Jan. 10, 2007, Winn-Dixie had approximately $500 million of liquidity, a significant increase from the end of the prior fiscal quarter. The company had no borrowings under its revolving credit facility.
The company said it has initiated a store capital program, with 40 store remodels currently underway, of which 15 to 22 are expected to be completed by the end of the current fiscal year. It plans to remodel about 75 stores annually in future fiscal years.
"We are continuing to make progress in many areas of our business plan," said Winn-Dixie chairman, c.e.o., and president Peter Lynch in a statement. "Going forward, we remain committed to executing five key initiatives: rebuilding trust in our brand; investing capital in our stores; neighborhood marketing; associate training and development; and focusing on profitable sales."
Lynch said he is confident that the company has the liquidity it needs to fund both its current business operations and its planned capital expenditure program.
Winn-Dixie operates 522 stores in Florida, Alabama, Louisiana, Georgia, and Mississippi.