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Winn-Dixie Posts Loss on Flat Sales

JACKSONVILLE, Fla. — Winn-Dixie Stores said inflation and store remodels boosted sales in the second quarter, partially offsetting the pressure from competitive activity.

JACKSONVILLE, Fla. — Winn-Dixie Stores said inflation and store remodels boosted sales in the second quarter, partially offsetting the pressure from competitive activity.

Identical-store sales were down 0.3% for the 16-week period, which ended Jan. 12, and overall sales were flat compared with the year-ago period at about $2.1 billion. The loss for the quarter totaled $24 million, vs. net income of $2.1 million in the year-ago period. The most recent quarter included a loss from discontinued operations of $1.7 million.

"We delivered significant improvements in both identical store sales and adjusted EBITDA compared to last quarter, due largely to the strategic adjustments we made to our promotional activity and the implementation of sustainable merchandising and marketing initiatives tailored to meet the shopping needs of our guests," said Peter Lynch, chairman, president and chief executive officer.

Adjusted EBITDA was $27.4 million in the second quarter of fiscal 2011, a decrease of $5.1 million compared with the same period last year, but an increase of $34.3 million compared to the first quarter of fiscal 2011.

Through two quarters the company posted a loss of $100.8 million, including a loss of $41.9 million from discontinued operations, vs. a loss of $6 million in the year-ago period. Sales were down about 0.92%, to $3.6 billion, and IDs fell 1.4%, including a 1.7% decrease in transaction count and a 0.3% increase in basket size.

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