The Pantry swings to loss in Q1

Cary, N.C. The Pantry reported Tuesday that it lost $26.1 million in the first quarter ended Dec. 24, compared with a profit of $38.5 million in the year-ago period.

The convenience store chain attributed its poor first-quarter results to a below-average fuel margin, soft grocery margin and non-cash impairment charges.

Merchandise revenues for the first quarter increased 7.0% overall and 5.2% on a comp-store basis compared with last year.

Retail fuel gallons sold in the first quarter increased 3.7% overall and 0.8% on a comp-store basis. Retail fuel revenue increased 6.2%, in part reflecting a 3.7% increase in gas prices.

The Pantry operates 1,655 stores in 11 states primarily under the Kangaroo Express banner.