With 1Q sales up, 'The New A&P' looks ahead
The Great Atlantic & Pacific Tea Co Inc (A&P) announced that sales for its fiscal 2005 first quarter ended June 18, 2005, were $3.4 billion, compared with $3.3 billion in the first quarter of fiscal 2004. Comparable store sales fell 0.3% versus year-ago.
Continuing operations sustained a loss of $89 million, versus a loss of $41 million in the fiscal first quarter a year ago. The current year’s results include charges totaling $68 million related to items the supermarket chain believes are of a non-operating nature. These items include $50 million in restructuring costs, mainly related to the sale of United States distribution operations to C&S; $15 million related to Midwest exit costs; and $3 million related to a Canadian dollar hedge.
Christian Haub, chairman and chief executive officer, said, “We now look forward to the formation and development of 'The New A&P,' as augmented by our major strategic accomplishments since the end of the quarter; namely the recently announced transfer of distribution operations, the pending sale of A&P Canada to Metro Inc, and our executive leadership change going forward in the United States."
