Supervalu FY 2011 Sales Down 7.6%
Minneapolis-based Supervalu Inc. reported net sales for fiscal year 2011 of $37.5 billion, a drop of $3.1 billion from 2010, and a net loss of $1.51 billion.
Fourth-quarter retail net sales were $6.7 billion, compared to $7.2 billion last year. The change in net sales primarily reflects a drop of 5 percent in identical store sales, store closures and market exits, the company reported.
“In the fourth quarter, our transformation initiatives helped us execute more effective promotions that contributed to stronger than anticipated results,” said Craig Herkert, Supervalu’s CEO and president. “This provides us a foundation to continue to deliver upon our business transformation plan as we move into fiscal 2012.”
Adjusted full-year net earnings were $296 million, or $1.39 per diluted share. Fourth-quarter retail food operating earnings were $131 million, or 2 percent of net sales, compared to $221 million, or 3.1 percent of net sales last year. Supervalu officials said the decrease as a percentage of sales reflects improved promotional effectiveness, attributable to the company’s business transformation initiatives, offset by higher LIFO charges, increased employee benefit costs and the impact of reduced sales leverage.
Total retail square footage at the end of Q4 FY 2011 was approximately 63.9 million, a 1.7 percent decrease from the same period a year ago. Total retail square footage, excluding store closures and market exits, increased 1.7 percent over last year. Retail food net sales in Q4 FY 2011 represented 77.3 percent of total net sales, compared to 78.3 percent last year.
“Today, we are aligned and working toward the common goal of delivering greater value to our customers,” Herkert said. “We enter fiscal 2012 with momentum, a solid plan and new capabilities to drive our business transformation, invest in price and deliver sequential improvement to ID sales.”
Supervalu Inc. operates 1,114 traditional retail stores, including 805 in-store pharmacies; 1,280 hard-discount stores, of which 899 are operated by licensee owners; and 1,900 independent stores serviced primarily by the company’s traditional food distribution business.