GROCERS TOP 4TH-QUARTER EXPECTATIONS.Byline: Dave McNary McNary may refer to:
Supermarket chains Vons Cos. Inc. and Safeway Safeway is a brand name used by several companies around the world: Supermarket chains
Vons, which operates 320 stores in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , posted profits of $35.1 million, or 78 cents a share, up 66.4 percent from earnings of $21.1 million, or 48 cents a share, in the year-ago quarter. First Call Inc.'s consensus of analyst estimates was 69 cents a share. Sales were up 3.35 percent to $1.26 billion, while revenues from stores open in both periods rose 3 percent. Vons noted its gross margin rose to 25.7 percent of sales from 25.3 percent due to increased private label sales, lower rents and better management of categories. Safeway, the nation's third-largest supermarket chain after Kroger The Kroger Co. (NYSE: KR) is an American retail supermarket chain and parent company, founded by Bernard Henry Kroger in 1883 in Cincinnati, Ohio. It reported over US$60 billion in sales during its most recent fiscal year and is the top grocery retailer in the country and and American Stores American Stores was the name of a United States chain of supermarkets. It was formed in 1917 when Acme Markets merged with four other Philadelphia area grocery chains into American Stores. American Stores would grow to 1,700 stores in 40 states with $15 billion in sales. , posted earnings of $151.6 million, or 63 cents a share, up 33.1 percent from year-ago profits of $113.9 million, or 47 cents a share, excluding $2 million for early debt retirement. First Call's consensus was 50 cents a share. Safeway, which has 1,052 outlets and will become the second-largest chain after the merger, reported sales of $5.49 billion, up 6.2 percent over the 1995 period. Revenues from stores open in both periods rose 4.9 percent. Safeway, of Pleasanton Pleasanton, city (1990 pop. 50,553), Alameda co., W Calif., a suburb of the San Francisco–Oakland area, in a vineyard and dairy region; inc. 1894. Wine and cheese are produced, and there are publishing and stone-quarrying industries. , Calif., said gross margin dipped to 27.21 percent from 27.37 percent because of increased spending to rebuild sales in Denver and Vancouver, which were hit by strikes earlier in 1996. Stock of Vons rose 37.5 cents to $67.75, while Safeway stock gained 12.5 cents to $48.125. Arcadia-based Vons announced in mid-December it had agreed to sell Safeway the 65 percent of itself that Safeway did not already own for about $1.57 billion in stock and $560 million in debt assumption. Increases in Safeway's stock price since then have added about $400 million to the value of the stock Vons shareholders will receive when the deal closes, expected in March or April. |
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