SuperValu Posts Positive Q3 2015
SuperValu Inc. is starting the year with positive news from its fiscal 2015 third quarter.
The Eden Prairie-based food distributor and grocery chain saw all three of its divisions (wholesale grocery, discount supermarkets and conventional supermarkets) post increased sales.
“We passed an important milestone this quarter delivering positive sales increases in all three of our business segments for the first time in many years,” CEO Sam Duncan said in a statement.
SuperValu reported net earnings of $12 million—or 4 cents per share—for the quarter. The company also reported that profits, after being adjusted for one-time costs, were $49 million, higher than analysts predicted. Sales jumped nearly 5 percent to $4.2 billion.
Cub Foods and SuperValu’s other retail food stores saw sales rise 2.3 percent compared to last year. The company cited lower depreciation and employee costs as part of that, but some savings were lost when the company lowered product costs.
In recent years, the company has struggled in the mid-market grocery field as cheap retailers like Aldi and Walmart, as well as more expensive and trendy stores like Whole Foods, crowded it out. SuperValu has regained some ground but had to cut over 1,000 office jobs and sell off five of its grocery brands.
By afternoon trading Wednesday, Supervalu’s stock was virtually unchanged from its opening share price.