Supervalu announces fiscal-year earnings

MINNEAPOLIS Supervalu on Thursday reported net sales of $44.6 billion and a net loss of $2.9 billion for its fiscal year ended Feb. 28, which included 53 weeks.

“As we enter fiscal 2010, we anticipate a challenging economic environment, but remain focused on executing the strategic initiatives that will drive sustainable long-term sales and earnings growth,” stated Supervalu chairman and CEO Jeff Noddle. “Our center-led merchandising and customer-centric marketing initiatives are on track, and our substantial remodel program has freshened our store base. Combined with improved customer service scores and our revamped and energized own brands program, we are better positioned to deliver an enhanced value message to consumers.”

Year-to-date net cash flows from operating activities were $1.5 billion, compared with $1.7 billion in the prior year, primarily reflecting the timing of tax payments. In fiscal 2009, the company completed 161 major remodels, 17 minor remodels, 14 new traditional stores and 25 new limited assortment corporate stores.

“Fiscal 2010 will be a year of further investment at Supervalu,” Noddle added. “We know that consumers are placing a greater emphasis on price, and we are taking the actions necessary to strengthen our overall competitive position. While these actions will have a short-term impact on profitability, they build a better value proposition for consumers in this economic environment and provide a foundation for future robust sales growth.”

Supervalu has projected that net sales across the 52-week fiscal 2010 will be approximately $43 billion with same-store sales falling between -1% and 1%.