BOSTON -- Stop & Shop Cos. here reported higher sales and increased earnings on continuing operations for the third quarter and 40 weeks ended Nov. 5.
nd 3.5% for the year to date.
Conventional stores, which represent 25% of the company's store base but only 13% to 14% of sales, saw a same-store sales decline of approximately 6%, Debra Levin, a securities analyst with Morgan Stanley, New York, indicated, noting that the overall increase of 3.4% attests to the strength of Stop & Shop's superstore format.
The company said earnings from continuing operations rose 35% for the quarter to $16.7 million and 34% for the year to date to $60.2 million.
Net income fell 29.9% for the quarter to $8.7 million and rose 47.5% for the 40 weeks to $50.5 million. Earnings for the quarter included an extraordinary net loss of $8.01 million, or 16 cents per share, representing the write-off of unamortized deferred financing costs related to bank financings that the company said have been replaced on more favorable terms.
Earnings for the year to date reflected an after-tax charge of $9.7 million, or 19 cents per share, including $8.01 million representing the deferred financing write-off for the quarter and $1.7 million representing premiums and write-offs of unamortized deferred financing costs related to the repurchase of high-interest debt. Stop & Shop operates 127 stores, including 96 superstores, in Connecticut, Massachusetts, Rhode Island and New York.