Supervalu announces Q2 results

MINNEAPOLIS — Supervalu on Wednesday announced its earnings for Q2 of FY2016. The company’s net sales were $4.06 billion, up only slightly (0.5%) from $4.04 billion in the same quarter last year.

Despite slight trouble in its different segments, Supervalu’s gross profit was 14.4% of its net sales ($583 million), a slight increase over its 14.2% profit in the same quarter last year. The company attributes this increase to higher margins in each segment, lower logistical costs and fees earned under transition service agreements.

The company saw a 1.6% decrease in same-store sales among Save-A-Lot stores and its same-store sales, though corporate Save-A-Lot stores saw a 0.9% increase in same-store sales. Despite the drop in same-store sales, net sales for Save-A-Lot rose 3.2% as the result of new store openings.

In the Independent Business segment, net sales were $1.83 billion, a slight decrease from last year’s $1.84 billion, which the company attributes to lower sales and lost stores. Operating earnings in the Independent Business segment were $2.7 percent of net sales ($49 million), a decline over last year that the company attributed to employee costs from new businesses.

The company’s Retail Food segment dropped 3.3% in same-store sales and fell 1.2% in net sales. Earnings were 0.9% of sales ($10 million) — about half of the net sales in the same quarter last year. High employee-related costs and higher shrink expenses are the cause, according to Supervalu.