SUPERVALU INC. (NYSE:SVU): Declares FY14 as Year-of-Transition


Dallas, Texas 09/19/2013 (Financialstrend) – A wholesale distributor, SUPERVALU INC. (NYSE:SVU), operates in three key segments including Retail Food segment, Save-A-Lot segment, and Independent Business. The company offers wide range of products to retail and wholesale consumers including grocery products, health and beauty care products, general merchandise and pharmacy products. SUPERVALU INC. (NYSE:SVU)’s market capitalization is around $1.95 billion. The stock is currently trading around $7.7 with 52 week price ranging between $1.8 and $8.26.

SUPERVALU INC. (NYSE:SVU) operates through more than 3400 stores across the country. With roots in supply chain and wholesale distribution, Independent Business segment catering to near 1900 independent retailers, remains largest revenue collector for the company. The company has earlier designated the current year FY14 as the year of transition for SUPERVALU INC. (NYSE:SVU). The key task for the company would be to regain consumer confidence in its offering of wider product range through strategic initiatives including brand revitalization and strengthening quality of its product labels. Alongside company is also eyeing to streamline its planned workforce consolidation by eliminating over 1100 positions starting 2Q14 – the current quarter.

Earlier the company posted a net loss of $0.43 per diluted share ($105 million) from continuing operations for 1Q14, the quarter ended June 15, 2013. The net loss from continuing operations during 1Q13 was $0.08 per diluted share ($18 million). Net sales for the 1Q14 remained at $5.16 billion, around 1.5% declines from $5.24 billion net sales reported during 1Q13. Net sales for Independent Business, Save-A-Lot and Retail Food declined 0.6%, 1.6% and 2.9% during 1Q14 compared to 1Q13. However each of these segments reported sequential improvement in sales during 1Q14 compared to 4Q13. The increase in gross margin and decline in selling and administrative expenses were primarily attributed to cost reduction initiatives, lower infrastructure costs and lower depreciation expense.

The President and Chief Executive Officer of SUPERVALU INC. (NYSE:SVU), Sam Duncan, reinstated faith in company’s strong leadership team and noted that the 1Q14 has highlighted the company’s renewed focus on driving sales and cash in all its business segments.