Supervalu Sales, Earnings Flat in Q2

Supervalu's sales and earnings fell short of expectation for the company's fiscal second quarter, as the grocer continues to struggle in the highly competitive supermarket landscape.

The company posted Q2 net sales of $4.06 billion, up a slight 0.5 percent from last year's $4.04 billion, while net earnings were flat at $31 million, or 11 cents per diluted share.

Gross profit for Q2 was $583 million, or 14.4 percent of net sales, compared to last year's $574 million, or 14.2 percent of net sales.

"I'm pleased that we increased adjusted EBITDA in the second quarter compared to last year in spite of several operating headwinds," said President/CEO Sam Duncan, who recently announced his retirement. "Our focus remains on driving sales across all three segments and finishing the year strong."

Net sales for Save-A-Lot in Q2 were $1.09 billion, compared to $1.06 billion last year, an increase of 3.2 percent; though identical store sales dipped 1.6 percent. Earnings came to $32 million, up from $26 million last year.

The grocer's independent business saw a 0.2 percent dip in net sales, posting $1.83 billion compared to last year's $1.84, while earnings were $49 million, down from $54 million in last year's Q2.

For the grocer's retail food segment, Q2 net sales fell 1.2 percent, from $1.11 billion last year to $1.09 billion this year, while earnings came to $10 million, down from $20 million.

Minnesota-based Supervalu Inc. operates a network of 3,395 stores composed of 1,854 independent stores serviced primarily by the company’s food distribution business; 1,342 Save-A-Lot stores, of which 901 are operated by licensee owners; and 199 traditional retail grocery stores.