Minneapolis, MN
By Eric Anderson
Supervalu has experienced heavy losses in the fiscal fourth quarter, as a result of discontinued operations and a drop in revenue.
The company reported a fourth quarter fiscal 2013 net loss of $1.41 billion, or $6.65 per diluted share. Net sales were $3.89 billion. The quarter also included $210 million in asset-impairment charges and $28 million in severance costs among other items. Due to the sale of the Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market stores and related Osco and Sav-on in-store pharmacies on March 21, 2013, their results were presented as discontinued operations.
Revenue decreased 2.3% to $3.89 billion. Gross margin narrowed to 13.4% from 13.9%.
The loss from discontinued operations totaled $1.23 billion, widening from a loss of $382 million a year ago.
“This past quarter was largely about transitioning the company for the future, and I am proud of the many things we accomplished in my first sixty days,” said Sam Duncan, President and Chief Executive Officer. “I brought in Ritchie Casteel as Save-A-Lot’s new president and CEO, and he has already right-sized that organization’s overhead and, along with me, met with a number of licensees to understand what we can do to help drive sales and improve the overall operating model.”
