Publix Q4 earnings fall even as sales rise

3/1/2019
Even as its fourth-quarter sales and same-store sales improved, Publix reported a sharp drop in net earnings.

Publix’s sales for the three months ended Dec. 29, 2018 were $9.3 billion, a 3.8% increase from $8.9 billion in the same period 2017. Same-store sales for the quarter increased 1.1%.

Meanwhile, net earnings dropped 47% to $407 million from $766.6 million in the prior year period. Publix cited the negative impact of a new standard in how the value of equity securities is measured, as well as a one-time remeasurement of deferred income taxes in 2017. However, net earnings were also positively impacted by a decrease in the corporate tax rate from 35% to 21%.

Excluding the impact of the new accounting standard and the one-time tax remeasurement, Publix said fourth quarter net earnings would have been $660.3 million, compared to $542.4 million in fourth quarter 2017, an increase of 21.7%. Earnings per share for the three months ended Dec. 29, 2018 would have been $0.92 per share, compared to $0.74 per share in 2017.

“Our fourth quarter results were impacted by an accounting rule change in 2018 and a one-time adjustment due to the Tax Act in 2017. Excluding these items, our net earnings were strong in the fourth quarter,” said Publix CEO Todd Jones. “Our associates continue to provide legendary service to our customers.”

In addition, Publix Pharmacy and Flagler Health+ announced an exclusive collaboration to include Flagler Health+ branded telehealth sites at Publix locations in St. Johns County, Florida. The collaboration initially includes three Flagler Health+ branded telehealth sites at Publix locations throughout St. Johns County and an on-site Publix Pharmacy at Flagler Hospital.

This is Publix’s second collaboration with a regional health system to provide in-store, walk-in care. Publix currently collaborates with BayCare Health System to offer similar telehealth services in four counties around Tampa, Florida.
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