Delhaize profit rises in Q3
Amsterdam -- Delhaize Group reported Wednesday that its third-quarter net profit rose 10% to $193 million, compared with a profit of $176 million in the year-ago period. Excluding currency effects, profit rose 2.7%.
The Belgian supermarket operator attributed the improvements to a stronger dollar against the euro, but also warned the retail environment in the United States remains challenging.
Revenue rose to $7.3 billion from $6.7 billion a year earlier.
Delhaize said the U.S. retail environment is still difficult but improving. The retailer, which generates more than two-thirds of its revenue from its U.S. Food Lion, Hannaford and Sweet Bay chains, said market conditions have improved since August when it issued a profit warning on its American operations. Delhaize cautioned that the economic and competitive environment remains challenging.
U.S. same-store sales fell 1.8% in the third quarter, compared with a 3.6% drop in the previous quarter.
The company's Belgian operations posted a strong performance in the quarter, with sales up 2.8%, boosted by new store openings, although same-store sales remained flat.