SUPERVALU INC. (NYSE: SVU) today reported first quarter fiscal 2015 net sales of $5.23 billion and net earnings from continuing operations of $48 million ($0.18 per diluted share).
Results for the first quarter of fiscal 2015 included $2 million in after-tax charges and costs for employee severance and debt financing activities. When adjusted for these items, first quarter fiscal 2015 net earnings from continuing operations were $50 million ($0.18 per diluted share). Net loss from continuing operations for last year’s first quarter was $102 million ($0.43 per diluted share) and included $139 million in after-tax charges and costs primarily related to financing activities, employee severance costs and asset impairment charges. When adjusted for these items, first quarter fiscal 2014 net earnings from continuing operations were $37 million ($0.14 per diluted share). [See tables 1-3 for a reconciliation of GAAP and non-GAAP (adjusted) results appearing in this release.]
"Fiscal 2015 is off to a solid start across our business segments,” said President and CEO Sam Duncan. “Our first quarter results reflect the investments we are making this year to position the company for future success and I am pleased with our operating performance.”
First Quarter Results – Continuing Operations
First quarter net sales were $5.23 billion compared to $5.24 billion last year, a decrease of 0.1 percent. Identical store sales in the Save-A-Lot network were positive 5.6 percent. Identical store sales for corporate stores within the Save-A-Lot network were positive 7.2 percent. Identical store sales in the Retail Food segment were positive 0.6 percent. Total sales within the Independent Business segment decreased 2.6 percent. Fees earned under the Transition Services Agreements (“TSA”) in the first quarter were $58 million compared to $84 million last year.
Gross profit for the first quarter was $752 million, or 14.4 percent of net sales. Last year’s first quarter gross profit was $795 million, or 15.2 percent of net sales. The decrease in gross profit compared to last year was primarily driven by lower fees earned under the TSA, predominantly related to the one-year transition amount recognized in the first quarter of fiscal 2014 of $36 million, and incremental investments to lower prices to customers partially offset by the benefits of lower infrastructure costs.