Impairment, higher expenses lead to Q3 loss at Roundy's

MILWAUKEE — Roundy’s swung to a net loss of $249.9 million in the third quarter of fiscal 2014 from net income of $3.2 million the same quarter a year earlier. A variety of impairment charges — including charges related to closing a distribution center, taxes and disposal of obsolete assets — drove Roundy’s into the red, along with higher operating and administrative expenses.

 

Net sales were $973.8 million, an increase of 16% from $836.6 million. The increase primarily reflects the benefit of new and acquired stores, partially offset by a decrease in same-store sales of 2.7%.

 

Roundy’s plans to open two stores in the fourth quarter of fiscal 2014, including one new store and one acquired store. The company expects negative same-store sales growth in the fourth quarter and full fiscal year 2014, and varying net income performance that could range from a profit to a loss in the fourth quarter and a net loss for the full year.