SHOPKO STORES REPORTS FIRST QUARTER RESULTS
SHOPKO STORES REPORTS FIRST QUARTER RESULTS GREEN BAY, Wisc., June 25 /PRNewswire/ -- ShopKo Stores, Inc.
(NYSE: SKO) today reported increased sales and earnings for its first quarter (16 weeks) ended June 20, 1992.
For the 16 weeks ended June 20, 1992, sales increased 2.8 percent to $468.4 million versus the $455.8 million reported for the same period last year. Comparable store sales increased 1.4 percent. Net income grew 5.1 percent to $10.9 million, or $0.34 per share compared to $10.4 million, or $0.32 per share from the same period last year. The earnings per share calculation for the first quarter ended June 15, 1991 was based upon a pro forma 32,000,000 common shares which represents the actual number of shares outstanding after completion of the offering of common stock. Dale P. Kramer, president and chief executive officer, commented, "We are quite satisfied with our first quarter performance, especially when considering last year's strong first quarter and today's sluggish economic conditions." Colder-than-normal weather in ShopKo markets had an adverse impact on first quarter sales of spring merchandise, including seasonal apparel, and lawn and garden supplies. The earnings increase for the first quarter is attributed to increased sales volume, decreased selling, general and administrative expenses and decreased interest expense, offset by lower gross margins. Gross margin was 27.4 percent of sales for the 16 weeks ended June 20, 1992, compared to 27.7 percent for the same period last year. The decrease was primarily due to the continuation of the company's competitive pricing strategy. Selling, general and administrative expenses for the 16 weeks ended June 20, 1992, and the same period a year ago were 23.2 and 23.4 percent of sales respectively. The decrease is primarily due to a one-time $900,000 charge related to software development in last year's first quarter. "We are continuing to emphasize sales of apparel and home furnishings and are encouraged by increased sales in those categories in our repositioned stores," Kramer said. New format stores will be opening in July, 1992 in Helena, Mont. and Hutchinson, Minn. Two remodeled stores featuring the new format will open in Rochester, Minn. in July and seven others will open in the fall. ShopKo Stores, Inc. is a leading regional discount store chain operating 110 stores in 13 states. SHOPKO STORES, INC. STATEMENT OF EARNINGS (In thousands except per share data) Quarter Ended June 20 June 15 1992 1991 (16 weeks) (16 weeks) Revenues Net sales $ 468,358 $ 455,806 Licensed dept. rentals and other income 3,245 3,116 Total 471,603 458,922 Costs and expenses: Cost of sales 340,174 329,413 Selling, general and administrative expenses 108,528 106,708 Interest expense 5,021 5,992 Total 453,723 442,113 Earnings before income taxes 17,880 16,809 Provision for income taxes 6,952 6,415 Net earnings $ 10,928 $ 10,394 Net earnings per common share 0.34 --- Weighted average number of common shares outstanding 32,000 --- Supplemental net earnings per common share $ 0.34 0.32 Supplemental number of common shares outstanding 32,000 32,000 -0- 6/25/92 /CONTACT: Gene Bankers of ShopKo Stores, Inc., 414-496-4158, or Amy Ludwig of Morgen-Walke Associates, 212-986-5900, for ShopKo/ (SKO) CO: ShopKo Stores, Inc. ST: Wisconsin IN: REA SU: ERN
BM -- CL011 -- 3720 06/25/92 11:20 EDT
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|Date:||Jun 25, 1992|
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