Supervalu expects earnings to fall below guidance

MINNEAPOLIS Supervalu announced that identical-store sales and net earnings for its first quarter ending June 20 were impacted by a tougher than expected business environment, investments in price and higher levels of promotional spending. As a result, the company will be substantially below First Call consensus earnings for the quarter.

Commenting on the first quarter, CEO Craig Herkert stated, “Since providing guidance on our fourth quarter earnings call, consumers have become more value focused and cautious in their spending which has pressured sales and margins greater than anticipated. We currently estimate our identical-store sales will be approximately negative 3%. We will update annual guidance on July 28 with our first quarter earnings release.” Herkert added, “I am engaged in a full review of our operations and support functions. Supervalu has significant potential and I look forward to sharing with you my thoughts and vision for the business in the months ahead.”