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Goldman Initiates Supervalu With 'Sell' Rating

MINNEAPOLIS — Shares of Supervalu were trading down Monday following a Goldman Sachs report suggesting the retailer may encounter more trouble than the financial community expects realizing the benefits of its ongoing turnaround.

The report initiating coverage at Goldman gave Supervalu a “sell” rating, citing “secular and cyclical headwinds converging with excess financial leverage,” it said would pressure results and leave little for shareholders for the foreseeable future. These headwinds included a softening of inflation — which Goldman said would likely pressure profit growth — and continued market share losses. It said it expected Supervalu’s net sales, comp sales and gross profits would decline in excess of consensus analyst figures for the fiscal year, and that operating income would be 3% below consensus.

Stock in Supervalu was trading down by more than 3% Monday afternoon.

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