Supervalu Remains Under Pressure
NEW YORK (
) --
Supervalu
(SVU)
reported a 40% plunge in first-quarter profit, as the grocery sector remains trapped in a pricing war.
During the quarter, the company earned $67 million, or 31 cents a share, compared with $113 million, or 53 cents, in the year-ago period.
Excluding after-tax charges, Supervalu would have earned 43 cents a share, beating analysts' estimates by a penny.
Revenue dropped 9.6% to $11.5 billion, as Supervalu shuttered locations and exited markets, which it continues to do.
This follows rival
Safeway's
(SWY)
disappointing second-quarter results. The grocer also saw its profit tumble 40%. As a result, Safeway cut its full-year outlook, saying it doesn't expect a rebound until the fourth quarter.
Traditional grocers have been pressured as discounters like
Wal-Mart
(WMT) - Get Report
and
Target
(TGT) - Get Report
ramp up their fresh and processed food offerings.
Shares of Supervalu are up 2.2% on the day, to $11.83.
--Reported by Jeanine Poggi in New York.
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