March 02. 2012 2:00AM - Last modified: March 15. 2012 12:10PM

Roundy’s reports jump in earnings


Roundy's Inc. reported fourth quarter net income of $9.2 million, or 30 cents per share, compared with $8.6 million, or 28 cent per share in the same period a year ago.
The Milwaukee company's net sales for the fourth quarter of 2011 were $968.7 million, an increase of $20.4 million, or 2.2 percent, from $948.3 million for the fourth quarter of 2010.
However, same store sales decreased 1.2 percent from the prior year due to a 3.2 drop in the number of customer transactions as the company continues to be negatively affected by weak consumer discretionary spending and new competitive store openings.
"We are pleased with our financial performance for the fourth quarter and fiscal year 2011," said Robert Mariano, Roundy's chairman, president and chief executive officer. "Our consistent results reflect our local market leadership and scale, which allow us to provide high quality products and a differentiated customer experience at a great value for our customers."
On Feb. 8, 2012, Roundy's announced an initial public offering of its common shares, which began trading on the New York Stock Exchange. Roundy's raised approximately $111.1 million in net proceeds through the sale of 14.7 million shares of common stock.
Mariano said, "We are encouraged about our future growth prospects and believe that Roundy's is well-positioned for continuous financial improvement, despite the continued challenging economic environment for many of our customers. We will continue to execute our strategy to increase the assortment of our own brand products, drive increased sales of perishable and specialty products, as well as expand and enhance our store base with new locations and remodels. We anticipate opening four new stores in the Chicago area and relocating two stores in our Wisconsin market in 2012."