US: Supervalu swings to Q3 profit
By: just-food.com | 12 January 2010
US supermarket group Supervalu Inc said it is on track to deliver full-year earnings guidance as it reporting a third-quarter profit today (12 January).
For the quarter ended 5 December, the nation's fourth-largest food retailer by sales reported a profit of US$109m, compared with a prior-year loss of $2.9bn.
Revenue, however, dropped 9.5% to $9.2bn as same-store sales fell 6.5%.
Craig Herkert, Supervalu's CEO and president, said sales were "softer than we had anticipated", and the results "largely reflect the benefit of stabilizing margins and better controls over expenses".
"We recognise the challenging environment we face for the balance of the year, but continue to position the company for long-term success by focusing on activities that are sustainable and will best serve the local needs of our customers," Herkert said. "We are affirming our full-year earnings guidance provided in October."
Retail food net sales reached $7.1bn in the third quarter compared to $7.9bn last year, a decline of 9.4%, driven by a "challenging economic environment, heightened competitive activity, and deflationary pressures".
Herkert added: "We are on track to deliver our earnings guidance. Sales remain under pressure and, with our focus on margins and expense management, we are countering the underperformance on the top line."
Supervalu's identical-store sales are now projected to fall around 5% for the year compared to the previous guidance of a 4% fall.
Fiscal 2010 net earnings per diluted share are expected to be in the range of $1.95 to $2.05 on a GAAP basis and $2.01 to $2.11 on an adjusted basis.
Sectors: Retail
Companies: Supervalu Inc
View next/previous articles
12 Jan 2010 -
12 Jan 2010 -
Currently reading -
US: Supervalu swings to Q3 profit
12 Jan 2010 -
12 Jan 2010 -
Related research
Agricultural Products in the United States
Datamonitor's Agricultural Products in the United States industry profile is an essential resource for top-level data and analysis covering the Agricultural Products industry. It includes detailed data on market size and segmentation, plus textual an...
Euromonitor International's Retailing in the United States report offers insight into key trends and developments driving the industry. The report examines all retail channels to provide sector insight. Channels include hypermarkets, supermarkets, di...
This report analyzes the Global market for Supermarkets in US$ Billion....
Related articles
US: Supervalu sues Wal-Mart over grocery sales
Supervalu Inc has sued rival Wal-Mart for selling too many groceries in its University Avenue store.
US: Supervalu appointment signals focus on store development
Supervalu Inc. has promoted Andrew Herring to the position of VP market and real estate development.
Quote, unquote: just-food's week in words
Tuesday (20 April) saw a bullish Tesco and Associated British Foods present its latest numbers to the market, although elsewhere, Supervalu Inc's financial results were less robust. Meanwhile, Nestle admitted to challenges in Russia, and just-food heard about the promise of Africa for investors. Here is a selection of who said what about the top stories in the food sector this week.
There are currently no comments on this article
Be the first to comment on this article