The Great Atlantic & Pacific Tea Co., which owns A&P and other supermarkets, on Thursday reported a fiscal third-quarter loss as expenses increased from the prior year, when the company booked a hefty gain on the sale of the Metro Inc. chain.
For the quarter ended Nov. 29, the grocer's loss totaled $13.6 million, or $1.61 per share, compared with a profit of $57.3 million, or $1.35 per share, in the prior-year period.
Loss from continuing operations totaled $3 million, or $1.35 per share, compared with earnings of $73.1 million, or $1.73 per share, in the same quarter a year before. The prior year's results included a $106.1 million gain from the Metro sale.
Quarterly sales surged 70 percent to $2.12 billion, from $1.25 billion in the prior year.
Analysts surveyed by Thomson Reuters forecast third-quarter sales of $2.17 billion.
Comparable store sales rose 1.9 percent for A&P stores and fell 0.5 percent for Pathmark supermarkets.
Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance because they measure growth at existing stores rather than newly opened ones.
Store operating, general and administrative expense grew 61 percent to $648.5 million, and interest expense more than doubled to $36.7 million.
"I am pleased with the company's solid performance in the quarter," said President and Chief Executive Eric Claus in a statement. "Changes in our merchandising, pricing and promotional strategies have been successful in meeting the financially strained budgets of our customers in these difficult economic times."
Great Atlantic & Pacific Tea shares jumped 44 cents, or 6.6 percent, to $7.12 in morning trading. The stock has traded between $3.10 and $31.52 during the past 52 weeks.
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