Costs related to the exit of its Rainbow business in the Twin Cities markets, as well as the upcoming closure of a distribution center, helped push Roundy’s to a net loss of $13.5 million in the second quarter of fiscal 2014.
Net income for the quarter was $11.6 million, while net sales from continuing operations for second quarter 2014 were $971.9 million, an increase of 12% from $868.3 million for second quarter 2013. Same-store sales dropped 2.2%.
During the quarter, Roundy’s sold 18 Rainbow stores and closed the remaining nine not included in the sale, incurring an impairment charge. Roundy’s is also closing a distribution facility in Stevens Point, Wisconsin in the third quarter of the fiscal year, which has already incurred some costs.
Roundy’s expects to report net losses per share and negative same-store sales growth for the third quarter and full fiscal year 2013.
"We are confident that the strategic actions we started in the second quarter will improve our cost structure, operational efficiency and overall execution to provide positive long-term benefits to our business," chairman, president and CEO Robert A. Mariano said.