ShopKo cuts interest, ups profits: sales creep up 1.4 percent.(Business Today)

Home Textiles Today, August, 2004 by Hogsett, Don

GREEN BAY, WIS. -- Driven largely by a gain in same-store sales and a deep cut in interest expense, second quarter profits at heartland discounter ShopKo Stores Inc. rose 7.8 percent, to $8.3 million from $7.7 million during the same period a year ago. Sales edged up 1.4 percent, to $775.6 million from $764.7 million a year ago, while same-store sales improved 1.3 percent.

In a big boost to the bottom line, the retailer whittled interest expense 18.9 percent, to $8.6 million from $10.6 million last year, generating a cash savings of $2 million. For all of last year, interest costs were rolled back 19.2 percent, for a savings of $4.1 million. Operating costs improved slightly, declining 10 basis points, or one-tenth of a percentage point, to 21...

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