ShopKo cost-cutting reduces 3Q net loss
November 26, 2001-- Home Textiles Today,
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.
|QTR 11/3 (x000)||2001||2000||% CHG|
|( ): Denotes loss
|Oper. income (EBIT)||26,856||27,943||-3.9|
|Per share (diluted)||(0.18)||(0.29)||—|
|Average gross margin||22.3%||23.9%||—|
|Oper. income (EBIT)||100,385||112,269||-10.6|
|Per share (diluted)||(0.23)||1.08||—|
|Average gross margin||22.7%||25.2%||—|