Perry Drug predicts rebound from `90 loss

PONTIAC, Mich. - Perry Drug Stores recorded a sharp loss for its fourth quarter and fiscal year ended Oct. 31, but company officials say steps already in place will nudge Perry back on track this year.

Fulfilling its own predictions, the company reported a loss of $3.8 million in the fourth quarter, compared with net earnings of $1.3 million in the final period last year. Perry attributes the downturn to a deteriorating economy and softened consumer demand, which led to below-plan sales of $161 million vs. $162 million last year.

General merchandise sales were particularly hard-hit in Perry stores, and picketing by some former Revco workers and their hirelings at some Perry sites may have had some impact.

The fourth-quarter loss dragged operating income for all of fiscal 1990 down to $595,000 on sales of $658 million. A major change in Perry's accounting method, however, resulted in a one-time charge of...