A&P Sales Improve Despite Pathmark Profit Issues

A&P’s sharply devalued stock rebounded somewhat Tuesday after the retailer here reported increased second-quarter sales and reduced losses despite encountering additional transition problems that sunk margins at its newly acquired Pathmark stores.

MONTVALE, N.J. — A&P’s sharply devalued stock rebounded somewhat Tuesday after the retailer here reported increased second-quarter sales and reduced losses despite encountering additional transition problems that sunk margins at its newly acquired Pathmark stores. For the second quarter, which ended Sept. 6, A&P reported a loss of $17.4 million on sales of $2.2 billion, and adjusted EBITDA of $67.1 million. Comparable-store sales increased by 2.8%. Gross margins as a percent of sales fell by 1.3% to 29.9%, mainly resulting from what officials said were system and process changes at Pathmark causing reductions in forward-buying and increases in out-of-stocks. Company officials blamed a lagging stock price on broad economic troubles and on liquidations of hedge funds with short interest in A&P; its stock on Tuesday was up more than 8%.

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