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CARTERET, N.J. - Pathmark Stores here is cutting its first-quarter and full-year profit estimates because of food inflation, troubled promotional programs, and increased medical costs, according to an article in today's Newark Star-Ledger.
Pathmark said it expects a loss of between 6 and 10 cents a share for its first quarter, ended May 1, and sales are expected to be down 1.5 percent. Pathmark is seeing sharp price increases in pork, eggs, milk, and other categories, but said it is not generally passing the increases along to shoppers because of competitive reasons.
According to the Star-Ledger, Pathmark also misjudged sales programs, in some cases backing off promotions because of fear of prices their competitors would have on the same items.
For the full year, Pathmark, which operates 142 supermarkets in the Mid-Atlantic region, now expects to earn between 28 cents and 47 cents a share. Previously, the company said it expected profits between 53 cents and 60 cents a share.