NEW YORK Duane Reade on Wednesday posted a same-store sales increase of 1.7% as it narrowed its loss during the second quarter.
“We are encouraged by our continued solid performance despite a weak external environment and are also pleased with our 6.3% increase in adjusted FIFO EBITDA. We made significant progress on the transformed store locations. The customer response to our improved offering and store design remains exceedingly positive with an expanding level of awareness of the improvements we have made. We are encouraged by this momentum and remain committed to better serving New Yorkers as we aim to become a destination brand,” stated John Lederer, chairman and CEO.
For the quarter ended June 27, the 253-store chain posted net retail store sales, which exclude pharmacy resale activity, of $450.3 million, up 4.2% compared with the year-ago period. Total net sales rose 6.1% to $479.1 million. Total same-store sales rose 1.7%, while front-end same-store sales increased 0.2%. Pharmacy same-store sales rose 3.6%.
Net loss for the quarter was $11.6 million, compared with $12.1 million in the year-ago period.
“As we look to the second half of the year, we remain cautiously optimistic about our prospects for continued growth in our business and remain in track with our expectations for adjusted FIFO EBITDA, even as we take into account continued external challenges. We are pleased with Oak Hill’s demonstrated confidence in our transformation plans and appreciate the firm’s ongoing support as our equity partner. Further, we anticipate that our debt refinancing will be completed shortly and look forward to the benefits of operating our business with added financial flexibility as we continue to identify and pragmatically realize our opportunities for long-term growth,” stated Lederer.