MONTVALE, N.J.--Both operating and net results for this year's second quarter were impacted at A&P by problems in the integration of the Pathmark operations acquired in the fourth quarter of fiscal 2007. Specifically, the problems resulted in a 143-basis-point reduction of gross margin that was felt at both the operating line and the bottom line.
During a conference call with analysts chief financial officer Brenda Galgano noted that Pathmark stores traditionally are more driven by price and promotions than A&P stores and, consequently, generate a lower gross margin. Exacerbating that fact, though, was an acceleration of cost inflation to more than 5% that was not …
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