MINNEAPOLIS — Supervalu saw its stock rise 12.4% yesterday despite reporting a loss of $201 million for the fourth quarter and nearly $2.9 billion for the fiscal year, which ended Feb. 28.
John Heinbockel, an analyst with Goldman Sachs, New York, noted that operating income beat most expectations and that identical-store sales, adjusted for a shift of Thanksgiving into the third quarter, were down 1.2%, “in line with the prior two quarters despite moderating inflation, which is evidence of stability.”
Supervalu also said it has been satisfied enough with the merchandising and marketing initiatives it introduced at Acme Markets in Philadelphia in late February to expand that effort to its Jewel stores in Chicago this month, with plans to convert Cub, Farm Fresh, Shaw’s and Albertsons-banner stores by next February.
The full-year loss resulted from impairment charges related to new accounting standards; costs related to store closures; settlement costs from a pre-acquisition Albertsons matter; and one-time acquisition related costs.
Sales for the year rose 1.2% to $44.6 billion. For the fourth quarter, sales increased 4.2% to $10.8 billion.
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