Winn-Dixie Stores Inc. (NASDAQ:WINN) posted mixed fiscal fourth-quarter results, as the company beat expectations on the bottom line but saw revenue come in short of expectations.
The grocery-store chain forecast adjusted income before interest, taxes, depreciation and amortization in the range $100 million to $130 million for the new fiscal year, compared with profit of $144.6 million in the last year.
In the fiscal fourth quarter, the food retailer reported profit of $14 million or 25 cents a share, compared with year-ago earnings of $9.4 million, or 17 cents a share, one year ago.
Revenue rose 1.8% to $1.75 billion, up from last year’s sales of $1.72 billion.
Analysts had predicted earnings of 15 cents a share on revenue of $1.77 billion.
Chief Executive Peter Lynch said in a statement the company had to manage expenses and promotional activity effectively in order to meet guidance during the fiscal year, and he called the economic and competitive environment in the fourth quarter “very difficult.” Lynch said the company’s decision to maintain gross margin negatively impacted same-store sales, which fell 5.2% from the year-ago period.
“In fiscal 2011, we are focused on improving sales by strategically adjusting our promotional practices in select categories, Lynch said in the company’s release. “For the first eight weeks of fiscal 2011, the adjustments we have made have enabled us to generate a sequential improvement in identical store sales of approximately 200 basis points. As we move through the year, we will continue to implement additional initiatives to further improve current year sales trends and to position us to achieve sustainable and profitable sales growth over the long-term."
The company previously announced plans to close 30 of its older stores and would layoff 120 corporate and field employees, in an effort to cut costs.
Shares of Winn-Dixie rose 5 cents, or less than one percent ,n Monday before the market closed at $8.02 a share. The stock was up 12 cents, or 1.5%, in after-hours trading.