Supervalu Begins Turnaround On Positive Note

In fiscal Q4, Supervalu generated net earnings from continuing operations of $40 million, or 15 cents per diluted share, it stated, including $8 million in after-tax net costs and charges primarily for employee severance and debt financing activities. In the same period last year, the retailer posted a loss of $174 million, or 82 cents per diluted share, including $149 million in after-tax costs and charges primarily for non-cash asset impairments and employee severance. When adjusted for the one-time items, 2014 fourth quarter net earnings from continuing operations were $48 million, or 18 cents per diluted share, the company reported.

The 18 cents per diluted share gain beat a Zacks Consensus Estimate of financial analysts by two cents.

Net loss from discontinued operations impacting the fourth quarter was $14 million, the company added.

Fourth quarter net sales were $3.95 billion versus $3.9 billion in the period last year, an increase of 1.4%, the company maintained. Identical store sales in the Save-A-Lot network gained 2.1%, while idents for corporate stores within the Save-A-Lot network advanced 3.5%, according to the company. Average idents in other Retail Food segment supermarkets increased 0.2%, it declared.

“Fiscal 2014 was an important transition year for Supervalu as we stabilized the organization and set the foundation for our future,” said president and CEO Sam Duncan in announcing the results. “I am pleased with the direction of our business segments and look forward to the new fiscal year where we can focus our attention on driving sales growth across the organization.”