Shares in US retail giant Supervalu Inc dropped yesterday (19 October) after it announced a fall in projected annual earnings.

Shares tumbled 5.63% to US$7.71 after the company announced a revised forecast for its full-year earnings per share.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

When Supervalu announced its first-quarter results in July, it forecast that its current financial year would, by the end of February, generate GAAP earnings per diluted share of $1.20-1.40.

The retailer yesterday updated its full-year guidance and while the low-end figure remains the same, the top end figure has now dropped to $1.30.

Net earnings rose slightly to $60m for the quarter to 10 September. In the same period in 2010 the company posted a net loss of $1.47bn because of non-cash goodwill and intangible asset impairment charges charges. If these are adjusted for, net earnings were $59m.

Operating earnings rose to $216m, compared to an operating loss of $1.39bn last year, or an adjusted figure of $176m. Net sales dropped to $8.4bn, compared to $8.7bn last year.

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.

Half-year net sales were $19bn, down from $20.2bn in 2010, operating earnings were $496m, up from $303m last year, and net earnings were $134m, compared to $59m in 2010.

Craig Herkert, Supervalu’s CEO and president, said: “While I am encouraged by our execution, I remain mindful of the challenging economy and its impact on consumer behavior. As we move into the second half of our fiscal year, Supervalu remains focused on its strategy and meeting the needs of its customers.”

Net sales estimates for the year are estimated to be approximately $36.5bn compared to an earlier projection of $37bn.

Supervalu has also slashed its forecast for Save-A-Lot store openings this year to 80 to 90, down from a forecast of 160 in May.

The retailer operates approximately 4,300 stores and 135,000 employees in the US.