Roundy’s Q2 Net Up Slightly; Comp Sales Down 3%

Milwaukee-based Roundy’s Inc. reported net sales of $996.8 million for the second quarter ending June 30, an increase of 1.7 percent over the year-ago period, while net income grew 6.6 percent.

“Our second-quarter results reflect the ongoing effects of a challenging economic environment on our business and our consumers,” said Robert Mariano, Roundy’s chairman, president and CEO. “Our top-line results were constrained by an increasingly price-conscious consumer and greater than anticipated pricing and promotional activity in several of our major markets. While these headwinds were worse than we expected in the quarter, we continue to be pleased with the strength in our Chicago-area stores and the growing traction of our perishable, organic and own brand product offerings.”

The increase in net sales reflects the impact of new stores, partially offset by a 3.3 percent decrease in same-store sales. Q2 gross profit increased 1.1 percent to $267.7 million, from $264.7 million a year ago. Operating and administrative expenses increased to $224 million, from $216.9 in the same period last year.

The company paid a dividend of 23 cents per share on all outstanding shares during the second quarter.

Year to date, net sales were $1,935 billion for the 26 weeks ending June 30, an increase of 2 percent from a year ago. The increase primarily reflects the impact of new stores, partially offset by a 2.7 percent decrease in same-store sales, which were negatively impacted by competitive store openings during the past year as well as a more challenging economic and competitive environment.

“As we look ahead, we believe that the economic and competitive conditions are likely to remain difficult for the second half of the year and consequently we are reducing our expectations for the year,” Mariano said. “We will continue to defend our local market leadership and are introducing a number of pricing and promotion initiatives focused on providing customers with high quality products at compelling values.”

Founded in 1872, Roundy’s operates 159 grocery stores and 98 pharmacies under the Pick ’n Save, Rainbow, Copps, Metro Market and Mariano’s Fresh Market banners in Wisconsin, Minnesota and Illinois.