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STOP & SHOP EARNINGS INCREASE 22 PERCENT IN FIRST QUARTER

 BRAINTREE, Mass., June 21 /PRNewswire/ -- The Stop & Shop Companies, Inc., (NYSE: SHP) today announced its first quarter results, showing a 22 percent increase in Earnings from Continuing Operations over last year.
 Sales for the 16 weeks ending May 22, 1993, were $1,061,300,000, compared with $1,006,900,000 for the same period last year, a 5.4 percent increase. Comparable stores sales increased .3 percent over the prior year. Both total sales and comparable store sales were affected by the shift in the Memorial Day weekend from the first quarter in 1992 to the second quarter this year.
 Earnings from Continuing Operations were $19,500,000 in the first quarter, compared with $15,900,000 in the same period last year, a 22 percent increase. First quarter earnings per share from continuing operations were 38 cents in 1993, compared with 31 cents in 1992. Net earnings for the quarter were $13,700,000 or 27 cents per share, after reflecting a charge of $5,800,000 from the cumulative effect of adopting Statement of Financial Accounting Standards (SFAS) No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions". Net loss for the prior year's quarter was $195,000,000 or $3.78 per share, after including Bradlees which became a discontinued operation and the extraordinary loss due to early retirement of high interest debt.
 Earnings from Continuing Operations increased to 1.84 percent from last year's 1.58 percent as a ratio to sales due to the positive impact on gross margin from the continuing maturation of superstores, as well as disciplined control of operating expenses and reduced interest costs.
 During the first quarter, the company also adopted SFAS No. 109 "Accounting for Income Taxes", the effect of which has been applied retroactively. Adoption had no material effect on the restated first quarter of 1992.
 Stop & Shop's real estate expansion goal of opening at least 12 new superstores in 1993 is on schedule. Thus far this fiscal year, the company has opened five Super Stop & Shops in New Haven, Conn.; Bristol and Coventry, R.I.; Swampscott, Mass. and it's largest superstore to date of 74,000 square feet in Malden, Mass. These new stores offer added amenities such as dry cleaning and Pizzeria Uno take-out.
 The Stop & Shop Companies, inc. is New England's largest supermarket chain. The company operates 120 Stop & Shop Supermarkets, including 77 superstores, in Connecticut, Massachusetts, Rhode Island and New York.
 THE STOP & SHOP COMPANIES, INC.
 AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited)
 (In Thousands Except Per Share Amounts)
 16 Weeks Ended
 May 22, 1993 May 23, 1992(b)
 Retail sales $1,061,298 $1,006,897
 Cost and expenses:
 Cost of goods sold,
 buying and warehousing
 costs 776,458 746,008
 Selling, store operating
 and administrative
 expenses 202,326 186,248
 Depreciation and
 amortization 20,262 18,411
 Amortization of goodwill
 and lease interests 3,460 3,460
 Costs and expenses 1,002,506 954,127
 Operating profit 58,792 52,770
 Interest expense, net 23,497 24,229
 Earnings from continuing
 operations before income
 tax provision 35,295 28,541
 Income tax provision 15,795 12,619
 Earnings from continuing
 operations 19,500 15,922
 Loss from discontinued
 operations, net of
 income tax benefit --- (13,958)
 Loss on disposition of
 discontinued operations --- (194,539)
 Extraordinary loss, net of
 income tax benefit --- (2,300)
 Cumulative effect of change
 in accounting method, net
 of income tax benefit (a) (5,806) ---
 Net earnings (loss) $13,694 $(194,875)
 Net earnings (loss) per
 common share and share
 equivalents:
 Earnings from continuing
 operations 38 cents 31 cents
 Loss from discontinued
 operations, net of
 income tax provision --- (27 cents)
 Loss on disposition
 of discontinued
 operations --- (3.77)
 Extraordinary loss,
 net of income tax
 benefit --- (5 cents)
 Cumulative effect of
 change in accounting
 method, net of income
 tax benefit(a) (11 cents) ---
 Net earnings (loss) 27 cents ($3.78)
 Weighted average number
 of common shares and share
 equivalents outstanding (a) 51,904 51,588
 (a) Represents immediate recognition of the cumulative effect of adopting SFAS 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions."
 (b) Restated to reflect the retroactive adoption of SFAS 109, "Accounting for Income Taxes."
 -0- 6/21/93
 /CONTACT: S. Terry Vandewater of Stop & Shop, 617-380-7043/
 (SHP)


CO: Stop & Shop Companies ST: Massachusetts IN: REA SU: ERN

DJ -- NE002 -- 3916 06/21/93 08:41 EDT
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Date:Jun 21, 1993
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