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Roundy’s reports rough Q2 results

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Milwaukee -- Roundy’s reported generally disappointing financial results for the second quarter of fiscal 2013. Net income plummeted 40% from $18.9 million in the second quarter of the previous year to $13.5 million, while net sales for the second quarter of 2013 were $980.3 million, a decrease of $16.5 million, or 1.7%, from $996.8 million for the second quarter of 2012.

Roundy’s said the decrease was primarily driven by a 5.8% decrease in same-store sales and the effect of three stores closed during 2013, partially offset by the benefit of new stores. The decline in same-store sales was due to a 6.3% decrease in the number of customer transactions, partially offset by a 0.6% increase in average transaction size. Same-store sales comparisons were negatively impacted by the 2013 Easter and 2013 July 4th holiday shifts and the mix shift to greater generic pharmacy sales.

In addition, according to Roundy’s same-store sales were impacted by competitive store openings, wet and cooler weather conditions as well as the soft economic environment that continues to impact customer demand in the company’s core markets as compared to the prior year period.

Roundy’s updated its guidance for fiscal 2013, including an expected decline in same-store sales between 2.25% and 2.75% and sales growth of 1.5% to 2%.

 

 

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