Spartan Stores reports Q2 results

GRAND RAPIDS, Mich. Supermarket operator Spartan Stores had mixed results during the second quarter of its 2010 fiscal year, the company announced in an earnings report.

Net sales for the quarter, which ended Sept. 12, were $610.2 million, compared with $626.8 million in second quarter 2009. Operating earnings were $21 million, compared with $22.5 million last year due to lower sales and other factors. Net earnings were $10.4 million, compared with $10.6 million last year.

“As we progress through this difficult period, we are continuing to work on strengthening our consumer value proposition and improving the controllable factors of our business that will create additional operating leverage and position our company to benefit when economic growth continues,” Spartan president and CEO Dennis Eidson said in a statement.

There were some high points, however. Yeart-to-date cash from operations was $40.9 million, a 75.1% increase from last year’s $23.3 million, while long-term debt declined to $193 million, from $195.8 million.

“Our solid cash flow generation and balance sheet will allow us to continue making strategic capital investments and provide a strong foundation for the execution of our long-term consumer-centric business strategy,” Eidson said. “We expect the economic climate in markets where we operate to continue to weaken in the near term.”

Still, Eidson said, the company would make “tactical adjustments” and take cost control measures to benefit the company once the economic climate improved.