• Supervalue Q1 earnings down 33%
  • Sales slide 6%
  • Lowers FY EPS, sales forecast

US supermarket group Supervalu saw profits slide to US$113m in the first quarter of its fiscal year, down from $162m last year.

The company said earnings per share fell to $0.53 per diluted share, including after-tax costs of $3m related to store closures, down from $0.76 per share last year.

Sales fell to $12.7bn, down from $13.3bn.

Margins were dented by increased investment in promotional activity and marketing. Gross profit margin was $2.8bn, or 22.4% of net sales, compared to $3.1bn or 23% of sales last year.

Looking to the full year, Supervalu now expects sales to fall by around 3%, down from a previous guidance range of a 1%  decline to a 1% increase.

Full-year earnings are now expected to be in the range of $1.95 to $2.15 per share on a GAAP basis and $2.01 to $2.21 on an adjusted basis, when excluding costs related to store closures.

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