Supervalu posted a net loss in its third quarter, following the recent sale of its Save-A-Lot business.
For the third quarter ended December 3, Supervalu posted a company net loss of $26 million, or 10 cents per diluted share, versus net earnings of 34 million, or 13 cents per diluted share, in the year-earlier period.
When factoring in a $25 million after-tax non-cash charge comprised of a pension settlement charge, a goodwill impairment charge and store closure charges and costs, partially offset by a deferred income tax benefit, net loss from continuing operations was $11 million, or four cents per diluted share. Adjusted for one-time items, net earnings from continuing operations in the quarter were $14 million, or five cents per diluted share, according to Supervalu.
An analyst average estimate published by MarketBeat called for adjusted diluted earnings from continuing operations of 13 cents per diluted share.
Net sales were $3 billion versus $3.05 billion in the year-prior quarter. Third quarter sales from Supervalu’s retail operation were $1.06 billion versus $1.10 billion in the year-prior period, with the decrease reflective of identical store sales down 5.7% and the impact of closed stores, partially offset by revenues from acquired and new stores.
Subsequent to the end of the third quarter, Supervalu completed the sale of its Save-A-Lot discount grocery operation. The results of operations, financial position and cash flows of the Save-A-Lot business are presented by Supervalu as discontinued operations for all periods, the company stated, and Supervalu’s results from continuing operations no longer include the sales, operating earnings, and net earnings from the relinquished operation.
“The successful sale of Save-A-Lot early in the fourth quarter provides Supervalu with additional flexibility to operate and grow our business,” Mark Gross, Supervalu president and CEO. “Additionally, our wholesale team has done a tremendous job delivering for our customers. It is a significant accomplishment that we increased wholesale sales compared to last year given the sales lost at the end of fiscal 2016. Unfortunately, in our retail segment, we have not been able to overcome persistent deflation, competitive impacts and other factors.”