Winn-Dixie raises guidance, says remodeling program untrack

JACKSONVILLE, Fla. Winn-Dixie Stores announced that it has raised its previously issued Adjusted EBITDA guidance for fiscal 2009 to approximately $164 million, exceeding the high-end of its previous guidance of $152 million, due primarily to a higher gross profit margin achieved in the fourth quarter and a reduction in its estimated annual LIFO charge to $15 million from its previous estimate of $19 million.

Winn-Dixie also said it now expects Adjusted EBITDA for fiscal 2010 to be in the range of $170 to $180 million.

Winn-Dixie Chairman, CEO, and President, Peter Lynch, said, “We continue to make excellent progress with our strategic initiatives and expect another good year in fiscal 2010. We are improving our competitive position through our store remodel program, executing targeted merchandising and marketing activities, and providing better customer service throughout the chain. In addition, we remain focused on managing our cost structure while maximizing the impact of our capital investments. We enter fiscal 2010 as a stronger company, and I am very optimistic about our future success.”

Winn-Dixie said it is on track with its remodeling program. The company reported that as of the end of fiscal 2009, the company had completed 170 store remodels, 73 of which were still within their first year of operation. Of the 73 first-year store remodels, 47 are considered by the company to be offensive remodels. For fiscal 2009, those 47 stores had a 10.3% weighted average sales increase compared to the same period in the prior fiscal year, excluding the grand re-opening phase. The sales increase resulted from increases in transaction count and basket size of 5.6% and 4.5%, respectively.