SUPERVALU Reports Weak Q1 Results, Suspends Dividend (SVU)

U.S. supermarket chain SUPERVALU Inc. (NYSE:SVU) reported a sharp decline in its first-quarter profit. The Eden Prairie, Minnesota-based company also suspended its dividend, sending the stock down sharply in early trading today.

For the first quarter ended June 16, SUPERVALU reported a profit of $41 million, or $0.19 per share, down from $74 million, or $0.35 per share reported for the same period last year. The company’s first-quarter profit fell well short of consensus forecast of $0.38 per share.

SVU, which has lost customers in recent years to lower grocery prices at retailers such as Wal-Mart, reported first-quarter sales of $10.59 billion, down 4.7% over the same period last year. Same-store sales for the quarter slipped 3.7%. The consensus sales forecast for the quarter was $10.81 billion.

Following the weaker-than-expected first-quarter results, SUPERVALU also withdrew its forecast for the full year. The company also said that it suspended its dividend. In addition, the company also lowered its capital spending for the fiscal year to a range of $450 million to $500 million.

SVU also said that it is reviewing its strategic alternatives, which includes a possible sale.

SVU stock fell to a new 52-week low of $3.01 today. At last check, the stock was down 44.4% to $2.94.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Chrisoil

• 

  Our Man In Rio

• 

  Professor Glen Arnold

• 

  Tom Frew