Supervalu Reports Record 2Q Results

MINNEAPOLIS - Major retailer/wholesaler Supervalu, Inc. said yesterday second-quarter earnings rose to $78.5 million, or 57 cents a share, from $62.2 million, or 46 cents a share, primarily due to solid performance in its retail division.

Total sales fell to $4.5 billion from $4.6 billion, due in part to the company's exit from the Denver market. The Minneapolis-based company said sales at stores open more than a year rose 0.9 percent, when adjusted for in-store expansion.

"We are pleased with our record results in the second quarter," noted chairman and c.e.o. Jeff Noddle in a statement. "We achieved strong earnings performance reflecting last year's asset exchange and a continued focus on merchandising programs."

Noddle said Supervalu's outlook remains solid, noting, "Our combined retail and logistics competencies give us a unique blend of capabilities and a highly complementary business model."

Supervalu said sales for its retail food segment rose 2.1 percent to $2.4 billion. Same-store sales rose 0.2 percent for the segment, which had operating income of $105.3 million, a 6.4 percent increase from a year ago.

Excluding the exit of the Denver market, total retail square footage, including licensed stores, increased by about 4.5 percent from last year's second quarter, with Save-A-Lot growing 6.5 percent, Supervalu said. Save-A-Lot continued to generate positive comparable store sales.

Supervalu's store development plans in fiscal 2005 are for around 110 new extreme-value food combination stores, 90 extreme-value, company-owned store conversions to extreme-value combination stores, eight to 10 new regional banner stores, and 30 regional banner remodels.
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