US retailer and distributor Spartan Stores saw its earnings fall in the first quarter of its fiscal year as food deflation and challenging trading conditions hit sales.
Spartan Stores, which acts as distributor to independent stores as well as running 97 supermarkets in Michigan, yesterday (29 July) booked net earnings of just under US$6m for the 12 weeks to 19 June – down from $6.9m a year ago.
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Net sales stood at $577.2m against $596m a year earlier, Spartan said.
President and CEO Dennis Eidson pointed to Spartan’s adjusted EBITDA – which reached $23m compared to $24.9m a year earlier – as proof that the company’s earnings had surpassed expectations.
“Despite the continued economic and market challenges, our earnings were better than expected, and we were able to achieve adjusted EBITDA that is among our highest first-quarter level,” Eidson said.
“From an earnings perspective, excluding any incremental LIFO benefit related to the warehouse consolidation initiative, we anticipate that the second-quarter net earnings will be slightly below last year’s performance and gradually improve as the year progresses and that fiscal 2011’s full-year performance will exceed fiscal 2010’s.”
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