Minneapolis – Supervalu Inc. reported a higher net loss and lower net income during the first quarter of fiscal 2014, compared to the first quarter of the prior fiscal year. Net loss totaled $105 million, up from $18 million year earlier, although one-time after-tax charges of $139 million pushed Supervalu into the red. Net sales were $5.16 billion, a 1.5% drop from $5.24 billion a year earlier.
The retailer said its year-over-year decline in net sales was primarily driven by same-store sales drops of 3% for its Retail Food banner, 1.9% for Save-A-Lot and 1.2% for corporate stores in the Save-A-Lot network. During the quarter, Supervalu closed a previously reached definitive agreement for the sale of the five retail grocery banners of Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market.
Sam Duncan, president and CEO of Supervalu, struck an optimistic tone based upon improvements from the fourth quarter of fiscal 2013.
“Our first quarter was highlighted by a renewed focus on driving sales and cash in all segments of our business and I’m pleased with the progress we made, especially the sequential improvement in sales trends from the fourth quarter of fiscal 2013 in each of our business segments,” said Duncan. “We have a good foundation, strong leadership team, improved debt maturity profile, and achievable goals across each operating segment.”
In other news, Supervalu appointed the final two members to its reconstituted board of directors: Eric G. Johnson, president and CEO of Baldwin Richardson Foods Company, and Sam Duncan.
“I am very pleased that Eric has joined the Supervalu board of directors,” said Bob Miller, Supervalu’s non-executive chairman. “He will bring a unique perspective to the group as both an entrepreneur and as a major producer of products and ingredients to the food industry.”