Winn-Dixie fiscal 1Q loss widens

Grocery-store operator Winn-Dixie Stores Inc. said Monday that its fiscal first-quarter loss widened as revenue declined due to storm-related sales and several store closures. The company's shares sank 10 percent in after-hours trading.

For the quarter that ended Sept. 16, Winn-Dixie reported a loss of $8.1 million, or 15 cents per share. This included an impairment charge of 6 cents per share related to the closures of six stores, and compares with a loss of $2.3 million, or 4 cents per share, in the year-ago quarter.

Sales fell 2 percent to $1.64 billion from $1.68 billion.

Analysts polled by Thomson Reuters expected a loss of 2 cents per share on $1.64 billion in revenue.

Winn-Dixie said sales from stores open in both periods fell nearly 2 percent year over year.

The company said that by the end of the quarter it had remodeled 170 stores since starting a remodeling program in 2007. Winn-Dixie plans to remodel 75 stores during the current fiscal year.

Winn-Dixie also said that, due to factors like changes in the economy and customer behavior, it now expects fiscal 2010 adjusted EBITDA — or earnings before interest, taxes, depreciation and amortization — of $140 million to $160 million. Previously, it had predicted $170 million to $180 million.

Winn-Dixie shares fell $1.17 to $11.97 after hours, following a decline of 22 cents to $13.33 in the regular session.