Supervalu has warned that its identical store sales and net earnings for its first quarter have been hit by a tougher than expected business environment, investments in price and higher levels of promotional spending.
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“As a result, the company will be substantially below First Call consensus earnings for the quarter,” a statement said.
Commenting on the first quarter, CEO Craig Herkert said: “Since providing guidance on our fourth quarter earnings call, consumers have become more value focused and cautious in their spending which has pressured sales and margins greater than anticipated. We currently estimate our identical store sales will be approximately negative 3%. We will update annual guidance on July 28th with our first quarter earnings release.”
Herkert added: “I am engaged in a full review of our operations and support functions. Supervalu has significant potential and I look forward to sharing with you my thoughts and vision for the business in the months ahead.”
In April, Supervalu said that it expected declining same-store sales trends to continue in the short term after it reported that fourth-quarter identical sales dropped 1.2% while overall retail sales were down 2% year-on-year.
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By GlobalData
