Lucky Stores Posts Sharp Rise in Quarterly Income

Lucky Stores Inc. reported sharply improved quarterly earnings which the supermarket chain attributed to increased sales and other effects of its recent restructuring.

Chairman and Chief Executive John M. Lillie said the strong sales pushed profits from food operations higher than expected for the quarter and full year.

The Dublin, Calif., company’s fourth-quarter profit, including discontinued operations, totaled $178 million on revenue of $1.76 billion, compared to net income of $14.2 million on revenue of $1.57 billion for the year-ago period. Earnings from continuing food store operations were $3.2 million.

Yearly net income was $225.9 million on revenue of $6.44 billion, compared to $86.5 million on revenue of $6.23 billion the year before. Earnings from continuing operations after taxes were $49.7 million after the $15.9 million in restructuring costs, compared to $48.7 million a year earlier.

The restructuring program, begun last year as New York investor Asher B. Edelman launched an effort to take over Lucky, involved the discontinuation of its Gemco, Automotive, Yellow Front and Hancock Fabrics units. Continuing operations are the company’s 579 food stores in the West, Midwest and Florida.