Supervalu Inc has said it is still on track to achieve its full-year forecasts, despite reporting weaker-than expected results for its fiscal first quarter. The company also separately announced the departure of its CFO, without naming a replacement.

For the three months to 19 June, net profit at the chain dropped by nearly 41% to $67m, while sales were down 9.5% to $11.5bn. Like-for-like sales were down 7.2%, but the company said that excluding the impact of a labour dispute at its Shaw’s banner, sales would have been down 6.5% on that basis.

Supervalu attributed the weak result on the poor US economy and tougher competition. CEO Craig Herkert noted, “We are disappointed with our first quarter sales performance”, but said the company continues to “control our margins well and take costs out of the business”.

It now expects net profits of $1.61 to $1.81 a share for the fiscal year, down from a previous range of $1.65 to $1.85, to reflect the impact of previously announced market exits and the Shaw’s dispute. Excluding those one-time items, it still expects earnings of $1.75 to $1.95 a share. Supervalu now expects like-for-like sales to decline by 5% (excluding fuel), compared to its earlier forecast of a 2% decline.

Supervalu also said that CFO Pamela Knous will leave the company on 30 July "to pursue other career interests." It added that it expects to fill the position by the time it reports second-quarter results in October.

NamNews - Wednesday 28th July 2010

 

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