NEW YORK — Fairway Market posted a net loss of $56.1 million while sales improved by 19.3% through the first three quarters of its fiscal year, the retailer here said in a filing with the Securities and Exchange Commission.
The filing updated Fairway’s S-1 document for an initial public offering of stock. The filing did not specify a date for the offering or a price for the stock. The filing included financial information through the end of Fairway’s fiscal third quarter on Dec. 30.
Sales through the first three quarters totaled $482.5 million, with $43 million in new sales coming as the result of three new stores and $35 million in new sales from the nine stores open in both periods. Gross profit as a percent of sales was 32.7%, down from 33.3% in the same period last year. Adjusted EBITDA of $33.8 million improved 35.9%, but comparable-store sales decreased by 4.6%, which Fairway said reflects customers shifting to shop at more convenient locations as additional outlets open.
More news: Fairway Reopens in Brooklyn
The net loss reflects opening costs as well as higher shrink and reduced productivity associated with new stores as well as refinancing and pre-offering costs, Fairway said.
Fairway said it intends to open new stores in the Chelsea neighborhood in Manhattan this summer, and in Nanuet, N.Y., this fall. Its longer-term plans call for three to four new stores a year. Fairway cited studies indicating it could triple its presence in the greater New York market, build as many as 90 stores between New England and Washington, D.C., and support 300 stores nationwide.
|More from Supermarketnews