Spartan Stores 4Q Profit Beats Expectations

GRAND RAPIDS, Mich. (AP) — Grocery products distributor and store operator Spartan Stores Inc. said Wednesday its fiscal fourth-quarter profit rose 10 percent as cash-strapped consumers snapped up more of the company's private-label goods.

For the three months ended March 28, Spartan said it earned $8.9 million, or 41 cents per share, up from $8.1 million, or 37 cents per share, a year earlier. Earnings from continuing operations totaled 40 cents per share in the latest period.

Sales increased to $581.3 million from $570.7 million, helped by the acquisition of VG's Food and Pharmacy stores and better sales at stores open at least a year. The higher sales were partially offset by a decline in fuel sales due to lower retail prices, a shift of the Easter holiday in this year's fourth quarter and sales related to stores that were sold to distribution customers or closed during fiscal 2008 and 2009.

Profit topped the 38-cent estimate forecast by analysts surveyed by Thomson Reuters, though sales came in shy of their $601.6 million projection.

For the full year, earnings increased 13 percent to $38.8 million, or $1.78 per share, from $34.3 million, or $1.58 per share, in the prior year. Earnings from continuing operations totaled $1.70 per share in the latest period.