Great Atlantic & Pacific Meets Lowered Expectations
Great Atlantic & Pacific Tea
(GAP)
, operator of the
A&P
grocery chain, reported earnings on Monday that met Wall Street's lowered expectations.
For the first quarter ended June 17, the company reported net income of $5.6 million, or 15 cents a diluted share, compared to a net loss of $19.5 million, or 51 cents a share, a year earlier. The consensus estimate of analysts polled by
First Call/Thomson Financial
was 15 cents.
Revenue rose to $3.20 billion from $3.11 billion a year ago.
Two weeks ago, Great Atlantic & Pacific, based in Montvale, N.J., said it would miss first-quarter earnings expectations because of higher interest expense, a general slowdown in consumer spending and lower-than-expected sales results in its recently acquired
Schwegmann's
and
The Barn
stores.
The company, which is 55% owned by the privately held German retailer
Tengelmann Group
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, also operates more than 760 supermarkets under the
Dominion
,
Farmer Jack
,
Super Fresh
,
Kohl's
,
Food Emporium
,
Waldbaum's
and
Sav-A-Center
names.
Shares of A&P finished down 1/8, or 1%, at 16 5/6 after reaching a 52-week low of 16 1/16.
