SpartanNash Sees Q1 Net Sales Growth of 3.7%
In its financial results for the 16-week first quarter ended April 19, food solutions company SpartanNash has reported a net sales increase of 3.7% to $2.91 billion, driven by an increase in volume in the retail segment, but partly offset by lower volume in the wholesale segment.
Wholesale segment net sales dropped 2.6% to $1.96 billion, mainly because of reduced case volumes in the national accounts customer channel and the elimination of intercompany sales to the recently acquired Fresh Encounter stores, but partly offset by higher sales in the military customer channel.
Retail segment net sales soared 19.6% to $947.2 million, which SpartanNash attributed to incremental sales from acquired stores, while retail comparable-store sales edged up 1.6%.
Net earnings were $2.1 million or 6 cents per diluted share, compared with $13.0 million or 37 cents per diluted share, while adjusted earnings per share (EPS) were 35 cents, compared with 53 cents. According to Spartan Nash, Q1 net earnings were lower because of planned increases in depreciation and amortization expense, organizational realignment expense, and retail store wages, partly offset by higher wholesale segment gross margin rate, lower restructuring and asset impairment charges, and lower corporate administrative costs. Adjusted EPS excludes the impact of organizational realignment, restructuring and asset impairment charges.
The company also reported capital expenditures and IT capital of $34.6 million, versus $44.1 million in the year-ago period, and that it returned $8.0 million to shareholders through dividends.
“We continue to execute on our strategic initiatives and deliver on our commitments,” said SpartanNash President and CEO Tony Sarsam. “SpartanNash hit the ground running in 2025, posting another quarter of growth and achieving record adjusted EBITDA in the first quarter. The team’s focus on operational excellence contributed to the quarter’s strong wholesale margins, positive comparable-store sales and increased sales from our recent retail acquisitions. Our results and the success of our strategic plan give us further confidence that we will achieve our 2025 guidance.”
SpartanNash’s guidance incorporated both the investments and benefits from its long-term strategic initiatives, including all transformational programs and tuck-in acquisitions. The adjusted EPS guidance for the fiscal year also reflects an approximate 30-cent impact because of an increase in non-cash expenses, primarily depreciation and amortization, in addition to incremental interest costs associated with recent acquisitions and capital investments. The company estimated that the 53rd week will contribute net sales of $0.2 billion, adjusted EBITDA of $4.0 million and adjusted EPS of 6 cents.
With 20,000 associates, Grand Rapids, Mich.-based SpartanNash operates two complementary business segments: food wholesale and grocery retail. Its global supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. On the retail side, SpartanNash operates nearly 200 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin’s Super Markets, and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers. The company is No. 44 on The PG 100, Progressive Grocer’s 2025 list of the top food and consumables retailers in North America.
