Supervalu records $4 billion in Q2 sales, up 1.8%

MINNEAPOLIS — Supervalu on Thursday reported second-quarter fiscal 2015 net sales of $4 billion and net earnings from continuing operations of $31 million.

 

"Midway through fiscal 2015, I am encouraged with the progress we have made across the business,” said president and CEO Sam Duncan. “The investments we have made at Save-A-Lot continue to drive sales and our Retail Food stores recorded their third consecutive quarter of positive identical store sales. The addition of the Rainbow stores this past quarter is a positive for our Independent Business and we are encouraged by the early results.”

 

Second quarter retail food net sales were $1.1 billion, up 2.8%. Identical store sales were positive 0.4%. Retail food operating earnings in the second quarter were $20 million, or 1.8% of net sales. Last year’s retail food operating earnings were $7 million, or 0.8% of net sales. The increase in retail food operating earnings was primarily driven by the benefit of lower levels of shrink and promotional spending.

 

Overall, second quarter net sales were up 1.8%. Identical store sales in the Save-A-Lot network were positive 6.5%. Identical store sales for corporate stores within the Save-A-Lot network were positive 8.2%. Total sales within the independent business segment decreased 1.1%. Fees earned under the transition services agreements in the second quarter were $44 million compared to $62 million last year.

 

Gross profit for the second quarter was $572 million, or 14.2% of net sales. Last year’s second quarter gross profit was $576 million, or 14.6% of net sales. The decrease in gross profit rate compared to last year was primarily driven by lower fees earned under the TSA, predominantly related to the one-year transition fee earned under the TSA in fiscal 2014 of $60 million of which $18 million was recognized in the second quarter of fiscal 2014.