Save-A-Lot Boosts Supervalu Q2

In its second quarter ended September 6, Supervalu posted net sales of $4.02 billion versus $3.95 billion in the period a year earlier. Net earnings were $31 million, or 11 cents per diluted share, versus $40 million, or 15 cents per diluted share, in the prior-year period.

A published Thomson Reuters consensus estimate of Wall Street analyst was for 11 cents per diluted share.

Identical store sales in the supermarket and food distributing company’s Save-A-Lot chain were up 6.5% overall and 8.2% among corporate stores, Supervalu maintained. Idents in the Retail Food segment gained 0.4%. Total sales within the company’s Independent Business segment decreased 1.1%, Supervalu stated.

The company pointed out that second quarter results included $1 million in after-tax information technology intrusion costs, net of insurance recoverable. When adjusted for the cost, second quarter net earnings from continuing operations came in at $32 million, or 11 cents per diluted share. Net earnings from continuing operations in the year-earlier second quarter included $9 million in after-tax income related to the sale of a property and a $3 million after-tax charge related to a legal settlement. So, second quarter fiscal 2014 net earnings from continuing operations were $34 million, or 13 cents per diluted share.

“Midway through fiscal 2015, I am encouraged with the progress we have made across the business,” Supervalu president and CEO Sam Duncan said in announcing the financial results. “The investments we have made at Save-A-Lot continue to drive sales and our Retail Food stores recorded their third consecutive quarter of positive identical store sales. The addition of the Rainbow stores this past quarter is a positive for our Independent Business, and we are encouraged by the early results.”