The CEO and president of US grocery retailer Supervalu Inc said today (27 July) he was “disappointed” with the company’s first-quarter performance.

The company posted net earnings of US$67m for the three months to 19 June, down 40.7% on the same quarter last year. Net sales fell 9.2% to $11.54bn.

The company added that when adjusted for $25m in net after-tax charges, primarily related to market exits in Connecticut and Cincinnati and the labour dispute at Shaws, first-quarter net earnings were $92m.

Supervalu president and CEO Craig Herkert said: “While we are putting in the right programmes to best serve our customers, we are disappointed with our first-quarter sales performance. We continue to control our margins well and take costs out of the business.”

The company attributed the plummeting results to negative identical-store sales, which fell 7.2% alongside previously announced market exits.

Excluding Shaw’s, which was impacted by a labour dispute during the quarter, identical-store sales were down 6.5%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Supervalu said the identical-store sales were down to a challenging economic environment and heightened competitive activity.

However, Herkert reaffirmed the company’s full-year earnings guidance. “We are pleased to reaffirm our full-year earnings guidance before one time items,” he said.