Supervalu reports losses for Q2, adjusts guidance
MINNEAPOLIS A labor dispute at one of its banner stores, employee-related costs and an impairment charge attributed to a net loss of $1.47 billion for Supervalu in its second quarter, compared with earnings of $74 million last year, the company announced Tuesday.
Total net sales for the second quarter were $8.7 billion, the retailer said, compared with $9.5 billion. Second-quarter retail-food net sales were $6.7 billion, compared with $7.4 billion last year, a decrease of 9.7%, primarily reflecting the impact of same-store sales of -6.4% and previously announced market exits, Supervalu noted. Excluding Shaw’s, which was impacted by a labor dispute settled early in the quarter, same-store sales were -5.9%.
The intangible asset impairment charges totaled $1.516 billion after tax, or $7.16 per diluted share.
“Our sales performance continues to reflect a difficult operating environment. As the company moves into the next phase of its business transformation, we remain focused on our customers and taking actions that will better meet their needs. I remain confident that we have the correct strategy in place to achieve long-term success,” said Supervalu president and CEO Craig Herkert.
Supervalu adjusted its guidance from $1.61 to $1.81, as the retailer now expects a net loss in fiscal 2011 in the range of $5.94 to $5.74 per diluted share.
Commenting on guidance, Herkert stated, “It will take longer than originally anticipated to realize the benefit of the marketing, merchandising and operational initiatives that we continue to build upon. Accordingly, we are adjusting our guidance to better reflect this outlook.”
Big Y finalizing purchase of Conn.-based A&P stores
SPRINGFIELD, Mass. Big Y reportedly is closing its deal to acquire seven A&P stores in northern Connecticut.
The Springfield, Mass.-based retailer said the sale will be completed on Nov. 1, according to the Boston Herald. Big Y owns stores in Massachusetts and Connecticut and has served these markets for nearly 75 years.
As previously reported by Drug Store News, grocer A&P announced in September an agreement with Big Y to sell the stores as part of its turnaround strategy.
“We continue to evaluate our operating footprint and its alignment with our turnaround strategy. These seven stores were clearly outside of our core markets, and their sale was necessary,” Sam Martin, president and CEO of A&P, stated at the time.
NeurogesX seeks expanded approval for Qutenza
SAN MATEO, Calif. A company that develops drugs for pain is hoping to get approval of one of its drugs for a pain condition associated with HIV.
NeurogesX announced Monday that it would seek Food and Drug Administration approval for the drug Qutenza (capsaicin) as a treatment for HIV-associated neuropathy, also called HIV-AN or HIV-distal sensory polyneuropathy, in the first half of 2011. The drug, a patch, already is approved for post-herpetic neuralgia. HIV-AN results from injury to sensory neurons by HIV virus proteins, the body’s immune response to the virus and some drugs used to treat it.
“As a company, we are focused on addressing unmet medical needs in pain and have made significant progress toward this goal with the U.S. launch of Qutenza,” NeurogesX president and CEO Anthony DiTonno said. “Our decision to submit a supplemental [application] to address the HIV-AN patient population is important as there are currently no FDA-approved treatments for HIV-AN.”