You are here
Minneapolis-based Supervalu’s third-quarter sales were $4.11 billion, compared to $4.23 billion in the same period last year, a decline of 2.6 percent. Net earnings from continuing operation was $35 million, which included $11 million in after-tax charges related to the potential Save-A-Lot spin-off, asset impairment and employee severance. Last week, the wholesaler filed a Form 10 or IPO for its Save-A-Lot business while cautioning that a Save-A-Lot spin-off is not guaranteed. Save-A-Lot’s identical store sales were down 3.4 percent.
"Although third quarter adjusted EBITDA was in-line with our operating plan, we continue to operate in a challenging environment," said President and CEO Sam Duncan. "Improving sales is a primary focus as we look to complete the fiscal year."
Q3 gross profit was $601 million, 14.6 percent of net sales compared to last year, which was $596 million and 14.1 percent of net sales.
Net sales for the Independent Business segment were down 3.5 percent from last year, $1.9 billion compared to $1.97 billion. The decline is attributed mainly to lower sales to existing customers and lost stores. Eau Claire, Wis.-based Gordy’s recently announced that it was leaving Supervalu in favor of SpartanNash.
Independent Business operating earnings were $54 million or 2.8 percent of net sales compared to last year’s $60 million or 3.1 percent of net sales.
Net sales for Save-A-Lot were down 1.5 percent, $1.07 billion compared to last year’s $1.09 billion. The decrease is attributed to closed stores as well as a decrease in identical store sales across the network.
Save-A-Lot operating earnings were $32 million, 2.9 percent of net sales. Last year, net earnings were $34 million or 3.1 percent of net sales.
The Retail Food segment reported Q3 net sales of $1.1 billion, a 2.5 percent decrease from last year when sales were $1.13 billion. Identical store sales fell 2.6 percent in the quarter.
Operating earnings for the segment were $21 million, 2 percent of net sales down from $28 million and 2.5 percent of net sales last year. The drop was due to higher employee-related costs.