Supervalu Posts Q3 Loss

MINNEAPOLIS — Supervalu here on Tuesday reported a loss of $202 million for the fiscal third quarter and said it also expected to post a loss for the full year.

MINNEAPOLIS — Supervalu [3] here on Tuesday reported a loss of $202 million for the fiscal third quarter and said it also expected to post a loss for the full year.

The third-quarter loss included one-time charges of $252 million after tax for asset impairment, store closures and severance expenses. The company reported net income of $109 million in the year-ago third quarter.

Same-store sales fell 4.9% in the quarter, which ended Dec. 4, contributing to an overall retail sales decline of 7.7%, to $6.6 billion. Total company sales for the quarter were down about 5.4%, to $8.7 billion, compared with year-ago results. Food distribution sales were even at about $2.1 billion for the quarter.

For the full year, Supervalu projected sales of about $38 billion and said it expected same-store sales to decline 6%, excluding fuel. Sales in the traditional food distribution business are expected to decline approximately 3.5%, primarily reflecting the transition of the Target Corp. supply business to self-distribution and the loss of Ukrop's Super Markets as a customer.