ShopKo cost-cutting reduces 3Q net loss
Staff -- Home Textiles Today, 11/26/2001
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.
| QTR 11/3 (x000) | 2001 | 2000 | % CHG |
| Sales | $800,908 | $817,579 | -2.0 |
| Oper. income (EBIT) | 26,856 | 27,943 | -3.9 |
| Net income | (5,218) | (8,424) | — |
| Per share (diluted) | (0.18) | (0.29) | — |
| Average gross margin | 22.3% | 23.9% | — |
| SG&A expenses | 18.9% | 20.5% | — |
| Nine months | |||
| Sales | 2,380,413 | 2,393,119 | -0.5 |
| Oper. income (EBIT) | 100,385 | 112,269 | -10.6 |
| Net income | (6,668) | 31,450 | — |
| Per share (diluted) | (0.23) | 1.08 | — |
| Average gross margin | 22.7% | 25.2% | — |
| SG&A expenses | 18.5% | 20.5% | — |
| ( ): Denotes loss |
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