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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.