SUPERVALU INC. (NYSE:SVU) today announced that identical store sales and
net earnings for its first quarter ending June 20, 2009 were impacted by
a tougher than expected business environment, investments in price and
higher levels of promotional spending. As a result, the company will be
substantially below First Call consensus earnings for the quarter.
Commenting on the first quarter, CEO Craig Herkert stated, “Since
providing guidance on our fourth quarter earnings call, consumers have
become more value focused and cautious in their spending which has
pressured sales and margins greater than anticipated. We currently
estimate our identical store sales will be approximately negative 3
percent. We will update annual guidance on July 28th with our
first quarter earnings release.” Herkert added, “I am engaged in a full
review of our operations and support functions. SUPERVALU has
significant potential and I look forward to sharing with you my thoughts
and vision for the business in the months ahead.”
About SUPERVALU INC.
SUPERVALU INC. is one of the largest companies in the U.S. grocery
channel with estimated annual sales of $43 billion. SUPERVALU holds
leading market share positions across the United States with its
approximately 2,500 retail grocery locations, including nearly 900
in-store pharmacies. Through the company’s nationwide supply chain
network, SUPERVALU provides distribution and related logistics support
services to more than 2,500 independent retailers across the country.
SUPERVALU has approximately 180,000 employees.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING STATEMENTS
Except for the historical and factual information contained herein,
the matters set forth in this news release, particularly those words
such as "estimates," "expects," "projects," "plans," and similar
expressions are forward-looking statements. These forward-looking
statements are subject to risks and uncertainties that may cause actual
results to differ materially, including the impact of economic and
industry conditions, competition, security and food and drug safety
issues, the integration of Albertsons operations, store expansion and
remodeling, liquidity, labor relations issues, escalating costs of
providing employee benefits, regulatory matters, self insurance, legal
and administrative proceedings, information technology, security, severe
weather, natural disasters and adverse climate changes, continued
provision of transition support services, the continuing review of
goodwill and other intangible assets and accounting matters and other
risk factors relating to our business or industry as detailed from time
to time in SUPERVALU's reports filed with the SEC. You should not
place undue reliance on these forward-looking statements, which speak
only as of the date of this news release. Unless legally
required, SUPERVALU undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
SUPERVALU INC.
David Oliver, 952-828-4540
david.m.oliver@supervalu.com
or
Steve
Bloomquist, 952-828-4144
steve.j.bloomquist@supervalu.com
