Supervalu sees higher loss, sales in Q1; appoints two board members
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.”
Sherwin-Williams Paint Stores Group buoys Q2
Another sign of further improvement in the nation’s housing market were results from leading paints manufacturer and retailer Sherwin-Williams, whose net sales for the quarter ended June 30 were $2.71 billion, up 5.5% from the same quarter last year.
Net sales in the Paint Stores Group increased 8% to $1.61 billion. The company’s total net income for the quarter was $257.3 million, up 12.9% from the second quarter of 2013.
"The Paint Stores Group architectural volume growth was strong across all end-market segments," siad Christopher Connor, chairman and CEO. The group opened 22 net new stores in the first six months, and is on track to open 70 to 80 new stores for the fiscal year.
Sherwin-Williams brands include Dutch Boy, Krylon, Minwax and Thompson’s Water Seal.
Safeway Q2 net income and sales decline
Pleasanton, Calif. – Safeway reported a substantial decline in net income for the second quarter of fiscal 2013 as well as a drop in sales. Adjusted net income for the quarter was $8.4 million, compared to $122.7 million in the same quarter a year earlier. However, after adjusting for various legal expenses and loss from discontinued operations, net income for the quarter would have been $125.1 million.
Meanwhile, sales totaled $8.7 billion, a 1.6% decrease from $8.8 billion in the second quarter of fiscal 2012. Safeway cited lower fuel sales in 2013 and the disposition of its Genuardi’s stores in 2012, partly offset by a same-store sales (excluding fuel) increase of 1.2%, as driving this small decline in sales.
Robert Edwards, president and CEO of Safeway, said expected profits from its June agreement to sell its Safeway Canada division to Canadian food retailer Sobeys Inc., as well as the April IPO of its Blackhawk subsidiary, should improve the company’s performance going forward.
“We are pleased with the significant milestones we achieved this quarter,” said Edwards. “The substantial cash proceeds we expect to receive from the sale of our Canadian operations combined with the completion of the Blackhawk IPO will allow us to broadly enhance stakeholder value.”