Supervalu Cuts Guidance; Shares Decline
September 08 2016 - 08:20AM
Dow Jones News
Supermarket operator Supervalu Inc. on Thursday cut its profit
guidance for the year, citing softer-than-expected second-quarter
results in its traditional and discount grocery segments.
The company said it now expects adjusted earnings before
earnings before interest, taxes, depreciation and amortization—a
widely-used profitability measure—to fall about 5% in the current
fiscal year. It had previously expected the measure to decline
1.5%.
Supervalu shares fell 5.7% in premarket trading.
Supervalu said its retail segment, which consists of traditional
grocery stores, was hurt by competitive openings and a challenging
sales and operating environment in the quarter. In the company's
discount grocery store, Save-A-Lot, results were hurt by deflation
and lower levels of government benefits compared with the first
quarter.
The company expects these factors to affect the second half of
the fiscal year as well.
Supervalu is exploring selling or spinning off its Save-A-Lot
division.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 08, 2016 08:05 ET (12:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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