SpartanNash Company (NASDAQ:SPTN) reported second-quarter adjusted earnings per share of 59 cents, beating the street view of 56 cents. Quarterly revenues of $2.23 billion missed the analyst consensus of $2.27 billion.
Net sales dropped 3.5%, primarily due to lower volumes in both the Wholesale and Retail segments.
The Wholesale segment saw a 4.8% decline to $1.55 billion, largely due to reduced volumes in national accounts. The Retail segment's sales fell 0.4% to $676.1 million, with comparable store sales down 2.5%.
Weaker consumer demand trends offset gains from newly acquired Metcalfe's Market stores.
Adjusted EBITDA was $64.5 million, down from $66.1 million, excluding restructuring and asset impairment charges, the LIFO provision, and acquisition and integration expenses.
"We are piloting a Customer Value Proposition initiative that is informed by extensive shopper data and insights, aimed at enhancing freshness, value and convenience. As part of this store modernization program, we are lowering prices on 6,000 products to bring more value to our shoppers today," said SpartanNash President and CEO Tony Sarsam.
Outlook: SpartanNash has reaffirmed its FY24 guidance, projecting total net sales of $9.50 billion to $9.70 billion, compared to the $9.60 billion estimate, and adjusted EPS of $1.85 to $2.10, versus the $2.02 estimate.
Price Action: SPTN shares are trading higher by 7.3% to $20.98 at last check Thursday.
Photo via Wikimedia Commons
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