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Supervalu Inc. Reports Operating Results (10-Q)

January 10, 2013 | About:
10qk

10qk

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Supervalu Inc. (SVU) filed Quarterly Report for the period ended 2012-12-01.

Supervalu Inc has a market cap of $609.6 million; its shares were traded at around $3.47 with a P/E ratio of 3.3. The dividend yield of Supervalu Inc stocks is 6.6%.

Highlight of Business Operations:

Selling and administrative expenses for the third quarter of fiscal 2013 were 19.3 percent of Net sales, compared to 19.3 percent of Net sales last year. The Selling and administrative expenses as a percent of Net sales in the third quarter of fiscal 2013, benefited 20 basis points from the $19 net favorable impact from a cash settlement received from credit card companies and a gain on sale of surplus properties closed and disposed of in the third quarter of fiscal 2013, net of non-cash strategic store closure costs and severance. Excluding the 20 basis point benefits previously described, Selling and administrative expenses as a percent of Net sales increased by 20 basis points due to a net deleveraging impact of 20 basis points from lower sales attributable to negative identical store sales, divested fuel centers and store closures.

Retail Food operating earnings for the third quarter of fiscal 2013 were $84, or 1.7 percent of Retail Food Net sales, compared with an operating loss of $818 or 15.3 percent of Retail Food Net sales last year. The $902 increase in the third quarter fiscal 2013 Retail Food operating earnings is due primarily to the impact of $907 of goodwill and intangible asset impairment charges recorded in third quarter of fiscal 2012. In addition, third quarter of fiscal 2013 includes a net $11 benefit comprised of a cash settlement received from credit card companies of $41 and expenses related to non-cash non-strategic store closures of $30. After taking into account these disclosed items in both periods, Retail Food operating earnings were $63 in the third quarter of fiscal 2013 compared to $89 last year. Retail Food operating earnings were lower due to lower gross profit, primarily as a result of lower volumes due to negative identical store sales, store dispositions, and divested fuel centers, partially offset by lower selling and administrative expenses due to lower volumes and cost reduction efforts.

Selling and administrative expenses for fiscal 2013 year-to-date were 20.1 percent of Net sales compared to 19.5 percent of Net sales last year. The increase in Selling and administrative expenses as a percent of Net sales is due primarily to negative impacts from net charges related to the announced closure of non-strategic stores, charges related to underperforming stores and other assets resulting in a negative 30 basis point impact, and a negative 30 basis point impact related to divested fuel centers and other net administrative costs.

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