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Roundy’s Inc. reported net sales of $968.7 million for the fourth quarter of 2011 and $3.84 billion for the entire fiscal year, increases of about 2 percent in both cases.
Net income increased 6.6 percent to $9.2 million for the quarter and 4 percent to $48 million for the year, the Milwaukee-based grocer reported.
“We are pleased with our financial performance for the fourth quarter and fiscal year 2011,” said Robert Mariano, Roundy’s chairman, president and CEO. “Our consistent results reflect our local market leadership and scale, which allow us to provide high-quality products and a differentiated customer experience at a great value for our customers.”
Same-store sales decreased 1.2 percent in Q4 from the prior year, which the company chalked up to a 3.2 percent decrease in the number of customer transactions amid weak consumer discretionary spending and new competitive store openings, partially offset by a 2 percent increase in the average transaction size. Q4 gross profit increased 2.5 percent to $254.1 million. Net income was $9.2 million, or 30 cents diluted earnings per common share, compared to $8.6 million (28 cents) for the year-ago period.
For the entire 2011 fiscal year, same-store sales decreased 0.2 percent from 2010. Net income was $4 million, or $1.58 diluted earnings per common share, compared to $46.2 million, or $1.01 diluted earnings per common share, in 2010.
“We are encouraged about our future growth prospects and believe that Roundy’s is well-positioned for continuous financial improvement, despite the continued challenging economic environment for many of our customers,” Mariano said. “We will continue to execute our strategy to increase the assortment of our own brand products, drive increased sales of perishable and specialty products, as well as expand and enhance our store base with new locations and remodels. We anticipate opening four new stores in the Chicago area and relocating two stores in our Wisconsin market in 2012.”
Last month, Roundy’s completed an initial public offering that raised $111.1 million through the sale of 14.7 million shares of common stock. The company used the proceeds to help repay all of its outstanding borrowings and other amounts owing under its existing credit facilities. This preceded reports that Roundy’s venture capital majority owner is seeking to divest the company, along with other assets.
Founded in Milwaukee in 1872, Roundy’s operates 159 retail grocery stores and 99 pharmacies under the Pick ’n Save, Rainbow, Copps, Metro Market and Mariano’s Fresh Market retail banners in Wisconsin, Minnesota and Illinois.