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What: Shareholders of grocery store operator Roundy's
So what: Apparently, someone forgot to double-bag the results. For the quarter, Roundy's reported a 2.4% decline in sales to 938.2 million as same-store sales fell 2.1%. The company actually cited the Green Bay Packers' early playoff exit as part of the reason its results were weak. Profits came in at $0.06 versus $0.29 in the year earlier and are lower because of an $8.4 million debt repayment. The big news, however, was Roundy's forecast that sales would increase 2.5% to 3.5% but that same-store sales would continue to decline by 0.5% to 1.5%. Increased competition and a weak spending environment appear to be the primary culprits hurting its existing stores.
Now what: Grocery stores are a low-margin business and there isn't much room, or forgiveness, in investors' hearts for blaming weakness on the Green Bay Packers. Traditional grocers are having a rough go of things as consumers are either trading down to dollar stores like Family Dollar
Craving more input? Start by adding Roundy's to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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