MINNEAPOLIS — Supervalu reported a net loss of $11 million during its 2017 fiscal third quarter, ended Dec. 3. However, when backing out after-tax non-cash charges comprising a settlement charge, goodwill impairment charge and store closure charges and costs partially offset by a deferred income tax benefit, Supervalu would have earned a profit from continuing operations of $14 million.
Net earnings from continuing operations in in 2016’s fiscal Q3 came in at $16 million, which included $6 million in after-tax costs related to asset impairment charges, employee severance and store closure charges and costs.
Supervalu completed the sale of its Sav-A-Lot business on Dec. 6 — after its Q3 ended — and presented Sav-A-Lot results as discontinued operations.
“The successful sale of Save-A-Lot early in the fourth quarter provides
Added Chief Operating Officer and CFO
Third quarter net sales for Supervalu’s most recent quarter came in at $3 billion, a 1.4% year-over year decrease. Gross profit for the third quarter was $407 million, or 13.6 percent of net sales, compared to $436 million and 14.3 percent of net sales, respectively.
At Supervalu’s retail division, 2017 Q3 sales came in at $1.06 billion, a decrease of 3.4%. Same-store sales of negative 5.7% were attributed for the decline.
Retail operating loss in 2017 Q3 was $14 million, or negative 1.3% of net sales and included a $15 million goodwill charge and $1 million of store closure charges and costs. When adjusting for these items, retail operating earnings were $2 million, or 0.2% of net sales. Retail operating earnings in Supervalu’s 2016 Q3 were $21 million, or 2% of net sales, which included $1 million of store closure charges and costs. When factoring this charge in, retail operating earnings in 2016’s Q3 were $22 million.
Supervalu attributed lower sales and higher employee costs partially offset by acquired and new stores for the decrease in retail operating earnings.