NEW YORK — Stock of Fairway Group Holdings was down by more than 21% Thursday after the operator of Fairway Markets here said sales were softer than expected during the fiscal second quarter.
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Total sales of $183 million increased by 14.1% in the quarter, but fell below company guidance of 15% and analyst estimates. Gross profit and EBITDA also were below analyst forecasts.
Officials attributed the shortfall in part to an unexpectedly slow start to sales at a new Fairway store in New York’s Chelsea neighborhood. The Chelsea store, which opened in July, is the retailer’s smallest at 17,000 square feet. Officials in a conference call Thursday said they were reorganizing and remerchandising the location.
Fairway posted a net loss of $12.2 million in the quarter, which ended Sept. 29. Fairway posted a $7.8 million loss in the same period a year ago.
Read more: Fairway Plans Downtown NYC Site
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