ShopKo sales and profits dip in 4Q
Jenny York -- Home Accents Today, March 17, 2003
Fourth-quarter profits at ShopKo Inc. slipped by 6.3 percent, to $32.7 million from $34.9 million, as sharply stronger profits at the retailer's rebounding Pamida division were offset by weaker returns at the larger ShopKo Stores unit.
Taking a further bite, ShopKo rang up $6.0 million in pre-tax restructuring costs stemming from an earlier operations overhaul.
Sales dipped by 4.5 percent, to $958.4 million from $1.0 billion last year, partly the result of store closings over the past 12 months. Same-store sales fell by 4.1 percent.
Average gross margin widened modestly, to 26.9 percent from 26.7 percent last year. And, hampered by falling sales, operating costs, when measured as a percentage of sales, inched up slightly, to 17.4 percent. But measured in real dollars, costs actually came down by 4.2 percent, to $166.6 million from $173.8 million last year.
Both debt and interest expense were cut back. Interest expense was reduced by 9.5 percent, to $13.1 million from $14.4 million, as the retailer worked down its debt by $198.0 million last year.
The Pamida division reaped the benefits of a turnaround, driving operating profits up to $11.6 million from $1.8 million, despite a 5.1 percent decline in sales.
But operating profits slipped at the larger ShopKo Stores division, falling by 12.9 percent, to $70.2 million from $80.6 million. Sales in ShopKo Stores slipped by 4.3 percent, to $736.3 million from $769.1 million.
ShopKo Stores Inc.
|Qtr. 2/1 (x000)||2002||2001||% change|
|Oper. income (EBIT)||67,266||75,379||-10.8|
|Per share (diluted)||1.12||1.21||-7.4|
|Average gross margin||26.9%||26.7%||—|
|Oper. income (EBIT)||120,646||115,597||4.4|
|Per share (diluted)||(4.95)||0.98||—|
|Average gross margin||25.7%||23.9%||—|
|a-12-month earnings include a one-time, non-cash accounting charge stemming from a change in accounting. Excluding the one-time item, earnings rose by 46.1 percent, to $41.2 million from $28.2 million.|