Supervalu tops expectations as profit more than doubles; sales up across segments

Minneapolis -- Supervalu Inc.’s third-quarter profit more than doubled as the supermarket chain experienced sales growth in all three of its business segments. Its results beat analysts' expectations.



Supervalu reported an overall profit of $79 million for the quarter ended Nov. 29, up from $31 million a year earlier. Revenue rose 4.8% to $4.2 billion.



The company also reported net earnings of $79 million for the third quarter, higher than $31 million in the prior-year quarter. Net earnings from continuing operations were $12 million, down from $33 million last year. The results included an after-tax pension settlement charge, debt refinancing and costs related to two data breaches that occurred in the summer.



“We passed an important milestone this quarter delivering positive sales increases in all three of our business segments for the first time in many years,” Supervalu CEO Sam Duncan said in a statement. “Overall, the third quarter provided many positives for us to build on during the final quarter of our fiscal year.”



The company’s smaller-format, discount supermarket business, Save-A-Lot, had a 6.9% increase in same-store sales.



Supervalu’s wholesale grocery operation, its largest business, performed the best, with net sales of $1.9 billion, up 2.4% over a year ago.



The company’s conventional retail business, which includes 195 supermarket locations, had a 2.3% increase in same-store sales, with total sales up slightly to $1.12 billion.