US retailer Supervalu has posted an improved third quarter (Q3) result for fiscal year 2010, with profit jumping to US$109m from a loss of US$2.9bn in the corresponding period last year.
However, overall group sales fell from US$10.2bn in fiscal year 2009 to US$9.2bn, with retail food sales down 9.4 per cent to US$7.1bn, the result of a difficult economic environment, enhanced competition and deflationary pressures.
The third-quarter performance is a clear sign that the company is more likely to be rational when it comes to price investments and attempting to protect near-term earnings,' Goldman Sachs analyst John Heinbockel told Reuters.
Supervalu said that it still expected to earn US$2.01-US$2.11 per share for the full fiscal year of 2010, with Reuters analysts forecasting a profit of US$1.86 per share.
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