Winn-Dixie Sees Spike in Q2 Comps; Operating Losses Continue

JACKSONVILLE, Fla. -- Winn-Dixie Stores, Inc. here saw a 4.1 percent increase in its second-quarter sales, thanks in part to a 7.3 percent spike in same-store sales. But the positive sales results weren't enough to make up for a net operating loss of $46.4 million.

>Net sales for the 16 weeks ended Jan. 11 were $2.4 billion, the bankrupt retailer said Friday in filings with the U.S. Securities and Exchange Commission. Identical store sales increased 7.3 percent and 3.3 percent, respectively, for the 16 weeks and 28 weeks ended Jan. 11, compared to the same periods in the prior fiscal year.

Identical store sales exclude data from stores that opened or closed during the quarter, including 11 stores in the New Orleans area that remain closed due to Hurricane Katrina. Areas significantly impacted by the aftermaths of Hurricanes Katrina and Wilma reported substantially greater increases in identical store sales, Winn-Dixie said.

The retailer reported net income of $235.4 million for the second quarter, due mainly to one-time accounting benefits.

Earlier this year, Winn-Dixie closed 326 of its worst-performing stores as part of a bankruptcy reorganization. The retailer now operates 585 stores in five states and the Bahamas.

Winn-Dixie has said it plans to file a formal reorganization plan in U.S. Bankruptcy Court next month, with a projected bankruptcy exit of June.