In the fourth quarter, following its plans to acquire Unified Grocers, Supervalu gained momentum in its wholesale business while its retail division slipped.
In the fourth quarter of fiscal 2017, Supervalu recorded net earnings from continuing operations of $6 million, or two cents per diluted share, versus $30 million, or 10 cents per diluted share, in the year-earlier period.
In the quarter, net earnings from continuing operations included $32 million in after-tax charges and costs related to an asset impairment charge, unamortized financing cost charges and a pension settlement charge while net earnings from continuing operations for the year-prior period included $9 million in after-tax charges and costs related to debt refinancing charges and store closure charges and costs. So, adjusted net earnings from continuing operations were $38 million, or 13 cents per diluted share, versus $39 million, or 14 cents per diluted share, in the quarter a year previous. Adjusted diluted earnings per share for the quarter surpassed a MarketBeat-published analyst average estimate of nine cents.
Fourth quarter net sales were $2.91 billion, up 0.6% year over year. Total net sales within the Supervalu wholesale division increased 3% to $1.79 billion. Retail identical store sales slipped 5.8% while the division’s net sales were $1.07 billion versus $1.11 billion in the quarter a year before.
In the full fiscal year, Supervalu recorded earnings from continuing operations of $27 million, or nine cents per diluted share, versus $84 million or 28 cents per diluted share, in the previous year. Adjusted earnings from continuing operations were $83 million, or 29 cents per diluted share, versus $101 million, or 34 cents per diluted share, in the previous fiscal year.
Net sales were $12.48 billion versus $12.91 billion in the year earlier. Wholesale division net sales slipped to $7.71 billion from $7.94 billion while retail division sales decreased to $4.6 billion versus $4.77 billion the year before.
“We finished fiscal 2017 with momentum in our wholesale business and an improved balance sheet resulting from the sale of Save-A-Lot,” said Mark Gross, Supervalu president and CEO. “I’m very excited about our agreement to acquire Unified Grocers as it brings together two great companies to create one of the nation’s leading grocery wholesale organizations. At the same time, we are working to fundamentally improve the shopping experience in our retail stores, and with new leadership and renewed passion, we are focused on changing our operating results. I remain optimistic for growth and believe strongly in the path our team is pursuing to achieve it.”
