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ShopKo Sales Drop, Profits Rise

GREEN BAY, Wis. -- ShopKo Stores posted net income of $11.5 million, or 38 cents per share, an increase of 38.9 percent compared with $8.3 million, or 28 cents per share, for the same period a year ago. And net second-quarter sales fell 5 percent to $737 million from $775.6 million last year.

Same-store sales -- a measure of sales at stores open during both years -- fell 5.6 percent in the quarter, the company said.

Results include a gain of $2.5 million from the sale of three ShopKo stores in Colorado, which offset $1.7 million in costs related to the pending $1 billion acquisition of ShopKo by Minneapolis private equity firm Goldner Hawn Johnson & Morrison Inc.

Since the second quarter of 2004, the company closed one ShopKo department store location and eight Pamida convenience stores, while opening 10 new Pamida stores and three neighborhood ShopKo Express Rx drugstores. It also plans to close one Pamida location in the third quarter, and expects to incur a one-time charge of $1.1 million upon the closing of the store.

ShopKo now operates 140 ShopKo stores, 220 Pamida locations and three ShopKo Express Rx stores.
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