GREEN BAY, Wis. — Citing price pressure and increased promotions, ShopKo Stores reported earnings dropped 41.5 percent in the fourth quarter and 35.8 percent in the year ended Feb. 26.

In the quarter, the company earned $10.2 million, or 32 cents a share, against $17.5 million, or 55 cents, a year ago.

Sales in the quarter increased 7.9 percent, to $462.6 million from $428.8 million. Comparable-store sales rose 3.7 percent. Gross margin dropped to 24 percent of sales, against 27.2 percent last year. In the year, after a $600,000 accounting charge, the company earned $32.1 million, or $1 a share, against $50.1 million, or $1.56. Sales were up 3.3 percent, to $1.7 billion from $1.68 billion, and comparable-store sales increased 1.2 percent. The company opened eight new stores in 1993 and is planning to remodel 34 stores this year. Gross margin for the year declined to 25.8 percent of sales from 27 percent. ShopKo operates 122 stores in 15 states, concentrated in the upper Midwest, Mountain and Pacific Northwest states.

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