SuperValu posts drop in 3Q profit and revenue
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SuperValu reported a drop in profit and revenue in its fiscal third quarter, during a period the grocery store operator called a "challenging" environment.
Shares of SuperValu Inc. fell 69 cents, or 11.5 percent, to $5.32 in morning trading Wednesday.
Based in Eden Prairie, SuperValu operates several grocery chains, including Cub Foods, Farm Fresh and Hornbacher's. The company plans to split off its discount chain Save-A-Lot into a separate company, a decision it first announced in July.
Grocery industry consultant John Dean says Supervalu is facing fierce competitors — like Walmart and Target — in a tough business.
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"It's a low margin business and you've got some of the larger competition moving into areas where they're already established an that makes it harder for them," he said.
On Wednesday, Supervalu reported net income of $34 million, or 13 cents, in its fiscal third quarter, down from $79 million, or 30 cents per share, from the same period before.
Earnings, adjusted for non-recurring costs and amortization costs, were 16 cents per share. The results matched Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was also for earnings of 16 cents per share.
Revenue fell 2.6 percent to $4.11 billion, slightly below the $4.16 billion analysts expected, according to FactSet.
MPR News reporter Martin Moylan contributed to this report.
