ShopKo cost-cutting reduces 3Q net loss

Staff -- Home Textiles Today, 11/26/2001 12:00:00 AM

GREEN BAY, WI —

Thanks to a close watch on expenses, ShopKo Stores Inc. was able to reduce its net loss in the third quarter. The Midwestern mass merchant reported a loss for the quarter of $5.2 million, compared with its third-quarter 2000 loss of $8.4 million.

ShopKo was able to trim more than 9 percent off its total selling, general and administrative expenses, which finished the third quarter at $151 million. Its ratio of SG&A to revenues fell 160 basis points between the 2000 third quarter and this year, to 18.9 percent.

"We continue to closely manage expenses and inventory levels to business trends while maintaining a strong liquidity position," said Bill Podany, ShopKo's president and ceo.

ShopKo's third-quarter sales slipped 2 percent, to $800.9 million. Looking inside this figure, the company's consolidated sales declined by an equal 2 percent, to $797.5 million. Same-store sales for the company increased 1.9 percent, which includes a 2.6 percent same-store sales growth in the ShopKo stores segment and a 0.4 percent comp-store decline for Pamida.

The company also said it expects fourth-quarter earnings per share to be in the range of 85 cents to $1.05.

Shopko Stores Inc.