MINNEAPOLIS — Stock in Nash Finch dropped to a 52-week low in afternoon trading Thursday after the company said competitive pressure and slowing inflation triggered a “challenging” second quarter.
A goodwill writedown of $132 million contributed to a net loss of $85 million in the quarter, which ended June 16, Nash Finch said. Excluding the writedown, which was related to aligning market value to declining stock price, quarterly net earnings decreased 25.6% to $9 million, and adjusted EBITDA totaled $27.8 million or 2.5% of sales compared with $34.4 million or 3.1% of sales in the same period a year ago.
More Nash Finch news: Nash Finch Adds Two Family Fresh Stores
Total sales dipped 0.6% to $1.1 billion, and comparable-store sales were down 1.5%.
“It’s fair to say this quarter was slightly more challenging than we hoped,” Alec Covington, Nash Finch’s chief executive officer, said during a conference call discussing results. Covington said escalating competitive pressure in the military sales segment weighed on profits, and distribution margins were adversely affected by a slowdown in food price inflation.
More Nash Finch news: Leases Former Giant Warehouse
Stock in Nash Finch was down by nearly 8% Thursday afternoon.
| Suggested Categories | More from Supermarketnews |
 |
|
|
|
|
|
|
