Just as Supervalu Inc. was starting to gain some traction in its quarterly results, the company revealed in its latest results Wednesday that the new tax law will hurt its bottom line for the rest of its fiscal year.
The news helped send Supervalu's shares down nearly 14 percent.
Supervalu, based in Eden Prairie, said it will take a charge of up to $45 million in the last three months of its fiscal year, which ends in early March, to account for reducing the carrying value of deferred tax assets as a result of the new tax law.
It now expects full-year profit from continuing operations to range from a loss of $20 million to a profit of $2 million. It had previously expected that profit to range from $31 million to $50 million.
Supervalu earned $18 million, or 46 cents a diluted share, from continuing operations during the three months ended Dec. 2, the third quarter of its fiscal year.
That's a turnaround from a loss of $11 million in the same period a year earlier. The adjustments covered $4 million in acquisition-related costs and $1 million in costs for store closings.
Sales shot up 31 percent to $3.94 billion, helped by the acquisition of Unified Grocers in its wholesale division.
With that deal, Supervalu saw its wholesale net sales jump 52 percent to $2.89 billion. "We continue to achieve strong underlying growth in our wholesale business," Supervalu CEO Mark Gross said in a statement.
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![Michael Fiddelke, Target CFO, at the downtown Target store Tuesday, Feb. 25, 2020, in Minneapolis, MN.] DAVID JOLES • david.joles@startribune.com Three years ago, Target laid out a bold plan to invest $7 billion into its business that paid off better than anyone could have imagined. Executives will head back to New York this week to lay out the next iteration of their strategy.](https://arc.stimg.co/startribunemedia/SVPXUQT5IMZ577JHGLS5NYAPFI.jpg?&w=436&ar=3:2&fit=crop)
