The company reported fourth quarter net sales of $10.4 billion compared to $10.3 billion for the same period last year, with net earnings of $156 million, an increase of 30% compared to $120 million in Q4 2006. However the company said in a statement that fourth quarter retail net sales were $8.1 billion compared to $8.2 billion last year, "primarily reflecting the impact of store closures in the acquired operations (the company bought most of Albertsons in 2006), combined with flat identical store sales."
Jeff Noddle, chairman and CEO, said in Thursday's call that the company saw a drop in pharmacy sales in the fourth quarter, possibly due to a mild flu season, and fewer customers, though higher average purchases that could be traced to inflation of food prices. "In addition, we are seeing evidence of customers managing their budget and focusing on value, with increased movement of promotional items, economy sizes and our own brand," he said during the call.
The company saw a record $44 billion in sales for all of fiscal 2008, Noddle said. The firm expects to hit $45 to $45.5 billion in fiscal 2009, with an earnings guidance range of $3.06 to $3.22 per diluted share. Stores owned by the company include Save-A-Lot, Cub Foods and Chicago's Jewel-Osco.
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