Supervalu Q3 loss widens after charge
MINNEAPOLIS — Supervalu Inc.'s fiscal third-quarter loss widened on larger write-down’s and weaker sales. The company reported a net loss of $750 million, including non-cash goodwill and intangible asset impairment charges of $800 million after-tax, from a loss of $202 million a year ago.
Supervalu said same-store sales fell 2.9% in the latest quarter. Net sales fell 4% to $8.33 billion, below analysts' average forecast of $8.42 billion.
Shares were down 4.7% at $8 premarket as revenue missed expectations and the company cut its sales view for the current year. Through Tuesday's close the stock is up roughly 11% in the past year.
“Supervalu continued to execute on its business transformation this quarter and remains on plan with its 8 Plays to Win strategy,” said Craig Herkert, Supervalu's chief executive officer and president in a press statement. “Even with the ongoing difficult economic environment and pressured consumer, we continued to make progress against our plan, allowing us to invest in price to deliver everyday value and hyper local choices that meet the needs of our customers in the diverse neighborhoods we serve.”
For fiscal 2012, Supervalu now expects a loss of $2.58 to $2.48 per diluted share on a GAAP basis. Excluding the goodwill and intangible asset impairment charges recorded in the third quarter, full-year earnings guidance is $1.20 to $1.30 per diluted share, in line with its previous GAAP guidance.