STRIKE COMPARISONS SINK SALES, PROFITS AT ARDEN

LOS ANGELES -- Arden Group, parent company of the 18-unit Gelson's Markets chain here, said sales and earnings fell for the second quarter and first half ending July 2 as the chain went up against difficult comparisons resulting from the 141-day strike-lockout that affected shopping patterns in Southern California at the end of 2004 and through early 2005.However, it said overall sales are greater

LOS ANGELES -- Arden Group, parent company of the 18-unit Gelson's Markets chain here, said sales and earnings fell for the second quarter and first half ending July 2 as the chain went up against difficult comparisons resulting from the 141-day strike-lockout that affected shopping patterns in Southern California at the end of 2004 and through early 2005.

However, it said overall sales are greater than in comparable pre-strike periods "as the company has been successful in retaining some of the new shoppers that came to Gelson's during the labor dispute."

Arden said sales were negatively impacted by two factors: The fact that Easter fell in the first quarter of 2005 compared with the second quarter of 2004 and by major construction in the area near one of its stores.

2ND-QUARTER RESULTS

Qtr Ended 7/2/05; 7/3/04

Sales: $116.4 million; $119.9 million

Change: -2.9%

Comp-store: -2.9%

Net Income: $4.5 million; $5.8 million

Change: -21.6%

Inc/Share: $1.34; $1.70

26 Weeks: 2005; 2004

Sales: $232.3 million, $267.3 million

Change: -13.1%

Comp-store: -13.1%

Net Income: $10 million, $14.3 million

Change: -30.1%

Inc/Share: $2.96$, 4.23