SpartanNash Announces Mixed Fourth Quarter and Fiscal Year 2018 Financial Results
- by Jessica Donnel
GRAND RAPIDS, MI - In the name of the retail game, you have to set your eyes on the prize, and SpartanNash is doing just that. The retailer reported in its Fourth Quarter and Fiscal Year 2018 Financial Results that over the next year or two it will be doubling down on long-term strategic growth—including acquiring new businesses.
“As we look forward over the next couple of years, we believe the landscape will continue to provide us with growth opportunities through acquisition, new customers, and expanded programs with existing customers,” said David Staples, President and Chief Executive Officer, in a recent press release. “That said, we still expect the operating environment to remain challenging during fiscal 2019. Our top five objectives for fiscal 2019 are: achieve mid-single digit sales growth; drive adjusted operating earnings and adjusted EBITDA growth over the prior year; realize $15 million of savings over the next 24 months from Project One Team, strengthen our management team, systems, and supply chain operations to further position the company for future growth; and reduce our debt levels and financial leverage ratios to facilitate achieving our strategic objectives.”
SpartanNash has been making several moves toward its goals over the past fiscal year. The retailer freed itself up for additional growth through acquisition by amending its current credit facility. Further, SpartanNash hired both a new Chief Merchandising and Marketing Officer, Lori Raya, and a new Chief Information Officer, Arif Dar. In December, the retailer executed ‘Project One Team,’ a company-wide initiative to drive growth while increasing efficiency and reducing costs.
“We are excited to see this initiative empowering our associates at all levels to drive sustainable improvements in our business as we take full advantage of the growth opportunities we expect to see over the next one to two years,” Staples said of Project One Team, though he did concede that the program is still very early in its deployment.
When looking at the rest of SpartanNash’s report for the fourth quarter and full year 2019, financial results seem to be mixed. Consolidated net sales for the fourth quarter increased $11.3 million, or 0.6%, to $1.90 billion from $1.89 billion in 2017’s Q4. Consolidated net sales for the fiscal year increased $100.8 million, or 1.3%, to $8.06 billion from $7.96 billion in 2017. However, SpartanNash did fall short of Wall Street’s expectations for both Q4 and Fiscal Year 2018.
To see a more in-depth look at SpartanNash’s most recent financial results, view the company’s press release here.
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