Supervalu has reported on a difficult second quarter of the year this week, announcing a loss for the three-month period ended 11 September and pushing down its full-year profit guidance.
The US retailer announced that it recorded a loss of US$1.47bn through the second quarter, down from a profit of US$74m in the same period of 2009, mainly as the result of non-cash goodwill and intangible asset impairment charges as well as certain other costs.
Without these charges and costs, the group revealed that second quarter net earnings came to US$59m, still down on the previous year's result.
Sales through the three-month period stood at US$8.7bn, falling from the US$9.5bn recorded last year.
As a result, the company lowered its guidance for fiscal 2011 to earnings of between US$1.40-US$1.60 per share, excluding non-cash charges, down from US$1.75-US$1.95 per share.
'Our sales performance continues to reflect a difficult operating environment,' said Craig Herkert, CEO and president at Supervalu. 'As the company moves into the next phase of its business transformation, we remain focused on our customers and taking actions that will better meet their needs. I remain confident that we have the correct strategy in place to achieve long term success.'
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