MINNEAPOLIS, MN - Supervalu has released its Q4 2015 financial report, announcing net sales of $4.36 billion and net earnings of $36 million.
“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.”
A major sector of the sales increase was from Supervalu’s Save-A-Lot banner. Net sales for Save-A-Lot were $1.14 billion, an increase of 13.7 percent. The increase in Save-A-Lot operating earnings as a percent of sales was primarily driven by a lower level of price investment, according to the report.
“Save-A-Lot's Q4 results were, again, led by meat and produce where ID sales were strong in both corporate stores and for licensee purchases. The lower level of cost inflation was the primary driver of the quarter-on-quarter change in ID sales compared to Q3,” Duncan said in a conference call with investors.
Other highlights from the report include:
- Q4 2015 net earnings from continuing operations were $66 million.
- Gross profit for the fourth quarter was $661 million, or 15.1 percent of net sales.
- Save-A-Lot operating earnings for Q4 were $47 million, or 4.2 percent of net sales.
- Q4 retail food net sales were $1.22 billion.
Duncan continued that Supervalu’s goal in 2016 is to open up 100 new stores on a gross basis, with approximately 60 of these anticipated to be corporate stores. He also expects that Save-A-Lot will be entering several new markets.
As of 6:54 PM EDT on April 28, Supervalu's stock was down $0.81 to $9.89, a decrease of 7.57%.
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