Albertsons Earnings Drop 79% in Quarter
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Supermarket chain Albertsons Inc. said first-quarter profit dropped 79% after a labor dispute at Southern California grocery chains hurt sales and the company shed its seven New Orleans stores.
Net income was the lowest in seven quarters, declining to $36 million, or 10 cents a share, from $172 million, or 47 cents, a year earlier. Sales in the 13 weeks ended April 29 fell 2.5% to $8.69 billion.
Chief Executive Larry Johnston offered discounts to win back shoppers lost during the strike and lockout, which ended Feb. 29.
The 4 1/2-month labor dispute, which affected 259 of Albertsons’ 2,500 stores, reduced profit by 27 cents a share and reduced sales by about $386 million.
Shares of Albertsons, which reiterated its forecast for profit of $1.40 to $1.50 a share this year, rose 36 cents to $23.93 on the NYSE.
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