Concerns over the US economy and rising food and fuel prices have caused retail giant Supervalu to reduce its annual sales forecast.
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The company said today (22 July) that it expects same-store sales, excluding fuel, to rise 0.5% for its current fiscal year, down from a previous forecast of growth of 1-2%.
The downbeat outlook came after Supervalu saw higher energy costs and price cuts erode food retail earnings during its first quarter.
Retail food operating earnings reached US$399m for the three months to 14 June, down from $449m a year ago. Net sales were flat at $13.3bn as retail food net sales dipped 0.7%.
Chairman and CEO Jeff Noddle said: “The ongoing weakness in the economy combined with higher food and energy inflation has created conditions that make us take a more cautious view for the balance of the fiscal year.”
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By GlobalDataSupervalu also lowered its forecast for earnings per share, predicting that underlying earnings – excluding one-time costs – would reach $3.04-3.20, against previous guidance of $3.10-3.25.
