AMERICAN STORES' VOLUME, EARNINGS OFF IN 4TH QUARTER

SALT LAKE CITY -- American Stores Co. here said special charges related to its Delta initiative lowered earnings per share to 44 cents in the fourth quarter of its fiscal year ended Feb. 1, 1997. Without the special charges, earnings per share would have been 85 cents for the quarter, compared with 83 cents per share in the fourth quarter of the prior year. total sales were $18.7 billion, compared

SALT LAKE CITY -- American Stores Co. here said special charges related to its Delta initiative lowered earnings per share to 44 cents in the fourth quarter of its fiscal year ended Feb. 1, 1997. Without the special charges, earnings per share would have been 85 cents for the quarter, compared with 83 cents per share in the fourth quarter of the prior year.

total sales were $18.7 billion, compared with $18.3 billion in the prior year. Comparable-store sales were up 2.3% for the quarter and 3.3% for the entire fiscal year.

Net income for the quarter was $64 million, American said, compared with $122 million for the fourth quarter of 1995. For the year, net income was $287 million, compared with $317 million in 1995. Capital expenditures totaled $324.6 million in the fourth quarter and $1 billion for the year. The company said it anticipates total 1997 capital expenditures to also be approximately $1 billion.

For the quarter, American opened 58 new stores, completed 14 remodels and closed 24 stores.

4TH-QUARTER RESULTS

Qtr Ended 2/1/97 2/3/96

Sales $4.9 billion $5.1 billion

Change - 4%

Same-store + 2.3%

Net Income $64 million $122 million

Change - 48%

Inc/Share 44 cents 83 cents

52 Weeks 1996 1995

Sales $18.7 billion $18.3 billion

Change + 2%

Same-store + 3.3%

Net Income $287 million $317 million

Change - 10%

Inc/Share $1.97 $2.16