Fairway Group 4Q loss widens on higher expenses
Fairway Group 4Q loss widens on higher expenses, revenue rises as it opens new stores
NEW YORK (AP) -- Fairway Group Holdings Corp. said Thursday that its fiscal fourth-quarter loss widened as its one-time expenses were higher than a year ago.
Fairway — which went public in April — is well-known among New York shoppers for offering relatively low prices and cramming its shelves with a wide assortment of groceries. It began as a fruit and vegetable stand in 1933 and has since expanded to a dozen locations in the region, including stores in Connecticut and New Jersey.
For the period ended March 31, the New York grocery store chain lost $14.4 million, or $1.17 per share, after paying preferred dividends. That compares with a loss of $8.5 million, or 69 cents per share, a year earlier.
One-time expenses rose to $4.4 million from $1.6 million.
Revenue climbed 19 percent to $178.7 million from $150.3 million, bolstered in part by new stores. Wall Street expected $181.2 million in revenue, according to FactSet.
Revenue at stores open at least a year rose 2.4 percent, excluding its store in Red Hook, Brooklyn. That store was temporarily closed starting in October due to Superstorm Sandy. It reopened on March 1. This figure is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
Fairway reported a full-year loss of $92.7 million, or $7.52 per share. In the previous year it lost $36.7 million, or $3.01 per share. Annual revenue increased 19 percent to $661.2 million from $554.9 million.
Fairway plans to open two new stores and a new central production facility in fiscal 2014. CEO Herb Ruetsch said in a statement that the company plans to open an additional three to four stores "in each of the next few fiscal years."
