SUPERVALU INC. (NYSE: SVU) today reported first quarter fiscal 2014 net sales of $5.16 billion and net earnings of $85 million, or $0.34 per diluted share.
Net loss from continuing operations for the first quarter of fiscal 2014 was $105 million, or $0.43 per diluted share, and included $139 million in after-tax charges, or $0.57 per diluted share, primarily related to current and previous financing activities, employee severance, and asset impairments. When adjusted for these charges, first quarter fiscal 2014 net earnings from continuing operations was $34 million, or $0.14 per diluted share. Net income from discontinued operations in the first quarter, which totaled $190 million or $0.77 per diluted share, included the benefits from the finalization of tax related matters and a favorable adjustment to the previously recorded loss on sale of five retail grocery banners in the first quarter. In the first quarter of fiscal 2013, the net loss from continuing operations was $18 million, or $0.08 per diluted share. [See tables 1-2 for a reconciliation of GAAP and non-GAAP (adjusted) results appearing in this release.]
“Our first quarter was highlighted by a renewed focus on driving sales and cash in all segments of our business and I’m pleased with the progress we made, especially the sequential improvement in sales trends from the fourth quarter of fiscal 2013 in each of our business segments,” said Sam Duncan, SUPERVALU’s president and chief executive officer. “We have a good foundation, strong leadership team, improved debt maturity profile, and achievable goals across each operating segment.”
“In the Independent Business, we reduced the rate of sales decline from the fourth quarter in spite of lower military sales. Our first National Retail Advisory Group meeting was very successful and we continue to talk with potential new customers,” added Duncan.“Save-A-Lot also showed improved ID sales trends across its store network and within its corporate stores while lowering the inside margin,” Duncan continued. “Save-A-Lot has made great strides on bettering its perishable offering and its overall in-store merchandising.”