Shoppers flocking to Supervalu's stores

Cost-conscious consumers are continuing to seek out bargains at Supervalu's stores, prompting the company's profit to soar 50% in the fourth quarter.

For the period ended Feb. 28, Supervalu reported a profit of $39 million, or 14 cents a share, up from $26 million, or 10 cents a share, a year earlier. The latest period included a benefit of three cents a share owing to an additional week. Excluding refinancing, benefit plan and store closure expenses and other items, earnings from continuing operations were 24 cents. Revenue increased 10% to $4.36 billion. Excluding the additional week, sales rose 2.5%. Analysts polled by Thomson Reuters expected per-share profit of 21 cents and revenue of $4.39 billion.

We finished the year with a strong quarter, highlighted by positive identical store sales at both Save-A-Lot and Retail Food as well as the transition of the first stores in our important new relationship with Haggen,” said president and CEO Sam Duncan. “Overall, fiscal 2015 was a year of strategic investment in all three of our business segments and I’m pleased with how these investments have positioned us for growth in fiscal 2016.”

The Save-A-Lot segment's same-store sales rose 3.6%, with corporate-owned stores securing an even-stronger comps gain of 6.6%.

Minnesota-based Supervalu serves customers across the United States through a network of 3,353 stores composed of 1,825 primary stores serviced by the company’s food distribution business; 1,334 Save-A-Lot stores, of which 903 are operated by licensee owners; and 194 traditional retail grocery stores.