Roundys (RNDY) Misses Q1 EPS by 2c

Roundys (NYSE: RNDY) reported Q1 EPS of $0.01, $0.02 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $1 billion versus the consensus estimate of $1.01 billion.

The increase primarily reflects the benefit of new stores, partially offset by a 5.2% decrease in same-store sales and the effect of four store closures during the trailing four quarters. The decline in same-store sales was due to a 8.0% decrease in the number of customer transactions, partially offset by a 3.0% increase in average transaction size. Same-store sales were negatively impacted by the Easter holiday calendar shift from the first quarter of 2013 into the second quarter of 2014. In addition, same-store sales continue to be negatively impacted by competitive store openings and the weak economic environment in the Company’s core markets. Adjusted for the effect of the 2014 Easter holiday calendar shift, same-store sales declined 3.7%.

“The first quarter was very active for our growth banner, Mariano’s, with the opening of 5 new stores. We continue to be pleased with Mariano’s very strong customer and community acceptance as well as the banner’s performance to-date,” said Robert A. Mariano, chairman, president and chief executive officer of Roundy’s. “Four of these openings were former Dominick’s stores and we opened an organic location in Lake Zurich, IL. In April, we opened two more stores, and one yesterday in the city of Chicago, bringing the number of Mariano’s stores to 21. We are on schedule with the remaining 8 acquired and organic openings this year.”

Mr. Mariano concluded, “During the first quarter of 2014, we continued to see softness in our core markets. Competitive pressure, weak economic growth and weather related issues affected our core markets in the quarter. Despite difficult same-store sales comparisons in the first quarter, we remain steadfast with our Milwaukee market renewal initiatives as we continue to implement strategic changes in select core markets.”

For earnings history and earnings-related data on Roundys (RNDY) click here.

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