Supervalu earnings decline

by Keith Nunes
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MINNEAPOLIS – Shifting consumer purchasing behaviors, deflationary pressures, and pricing and promotion efforts hindered Supervalu Inc.’s results for the second quarter of fiscal 2010, ended Sept. 12. Net income for the quarter was $74 million, equal to 35c per common share of stock, which compared unfavorably to the net income of $128 million, equal to 60c per share, that the company recorded during the same period of fiscal 2009.

Sales for the quarter were $9,461 million compared to $10,226 million during the second quarter of fiscal 2009.

Food sales for the quarter declined 6.9% to $7.4 billion from $8 billion the previous year. The company attributed the result to a decline of identical store sales of 4.8% and previously announced store closures.

For the first half of fiscal 2010, the retailer’s net income was $187 million, equal to 88c per share. The result represented a decline from net income of $290 million, equal to $1.37 per share, the company reported during the first half of fiscal 2009. Sales for the first half of 2010 were $22,176 million, a decline from sales of $23,573 million the company recorded during the first half of fiscal 2009.

The company updated its guidance for its full year results to a range of $2.01 to $2.11 per share.

"We are taking 10c off the top of our previous fiscal 2010 earnings guidance range as the economic outlook in the back half of the year and its impact on consumers has become clearer," said Craig Herkert, chief executive officer and president.

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