Supervalu returns to 2nd-quarter profit; adjusted results, revenue beat analysts' expectations

MINNEAPOLIS — Supervalu returned to a profit in its fiscal second quarter after posting a loss in the same period a year ago due to a large charge.

Its adjusted profit and revenue beat analysts' expectations. Shares climbed more than 6 percent premarket trading Thursday.

The grocer earned $40 million, or 15 cents per share, for the period ended Sept. 7. That compares with a loss of $111 million, or 52 cents per share, a year ago.

Taking out a charge related to a legal settlement and after-tax income tied to the sale of distribution center, earnings from continuing operations were 13 cents per share.

Analysts, on average, expected earnings of 12 cents per share, according to a FactSet survey.

Supervalu's stock rose 57 cents, or 6.8 percent, to $8.87 in premarket trading about 90 minutes ahead of the market opening.

The prior-year period had included $36 million in charges mostly related to store closings, asset impairments and a write-off of some loans costs.

Revenue rose slightly to $3.95 billion from $3.94 billion. Wall Street forecast $3.88 billion in revenue.

Save-A-Lot sales dipped to $972 million from $973 million as network same-store sales declined slightly. The figure climbed 4.6 percent for company-run stores open at least a year.

Supervalu has 1,334 Save-A-Lot stores.

Sales for the retail food segment slipped 1 percent mostly because same-store sales edged down 0.9 percent. The company has 191 traditional retail grocery stores.

Sales for the independent business — which includes 1,900 independent stores— fell 1.6 percent on lower sales to existing customers, including the military. This was somewhat offset by new business.