However, the company's profit from sales fell $12.9 million. This drop was due to promotional activities in the produce and meat departments, as well as inventory shrinkage.

At the end of the quarter the company currently operates 538 stores, down from the 574 it ran at the end of the quarter. And since its February 2005 bankruptcy, the court has allowed Winn-Dixie to reject leases for about 420 units. Earlier this month, the grocer reached an agreement to sell 21 stores to 14 buyers for about $15 million. The stores are a portion of the 35 it had agreed to close earlier this year.

In March, the retailer agreed to sell its 12-store Bahamas unit for $50 million. It now operates stores in Alabama, Florida, Georgia, Louisiana and Mississippi.