Supervalu Posts Flat Sales In Q2, Company Stock Dives
Supervalu Inc.’s stock plunged to a 19-month low after it reported nearly flat revenue growth during its second quarter.
Shares took an 8 percent hit from a $7.22 close on Tuesday to $6.63 by Wednesday’s opening bell — the lowest price Supervalu’s stock has been since March 2014.
Eden Prairie-based Supervalu, which owns several grocery chains, including Cub Foods, posted net sales of $4.06 billion over a three-month period ending September 12. However, compared to prior year’s Q2 results, Supervalu’s sales improved by only $21 million, or 0.5 percent.
Wall Street analysts had Supervalu pegged to finish at $4.12 billion in revenue with earnings at 14 cents a share. Instead, earnings per share were reported at 11 cents.
Supervalu’s Save-A-Lot chain made up more than a quarter of its business in Q2. It had sales of $1.09 billion at its more than 1,300 locations, an increase of 3.2 percent from the past year. Although one of Supervalu’s more successful chains, the grocery conglomerate said in July that it may spin off Save-A-Lot into its own standalone, publicly traded company.
A possible Save-A-Lot departure isn’t the only change-up happening at Supervalu. Sam Duncan, who has led Supervalu as its CEO for three years, announced his retirement earlier this month. Duncan said he would stay with the company until the end of February 2016 when Supervalu wraps up its fiscal year.