Winn-Dixie Posts Drop in Profit

Grocery-store operator Winn-Dixie(WIN Quote) said earnings dropped in the fiscal first quarter amid a significant sales slump.

The company posted earnings of 1 cent a share, or $1.2 million, compared to 25 cents a share, or $34.8 million, in the same period a year earlier. Revenue fell to $2.7 billion, a 5.8% decline from a year ago. Winn-Dixie also said same-store sales dropped 6.6% in the quarter.

Analysts had expected Winn-Dixie to report flat earnings, while revenue was generally in line with expectations.

Chief Executive Frank Lazaran said the company has started a plan to improve sales and earnings by increasing promotions, lowering prices and implementing various store enhancements.

Separately, Winn-Dixie said Wednesday it amended its $300 million credit line to eliminate a few financial measures it was required to meet. The agreement is now a revolving credit facility with numerous one-year renewal periods, instead of the previous 364-day and five-year revolving line.

Winn-Dixie shares were down 83 cents, or 8.6%, at $8.87 in midday trading Wednesday.