SpartanNash Q3 Net Sales Slow, But Comps Rise
Third quarter net sales at SpartanNash were down slightly but the company reported an increase in comparable store sales for the quarter ended Oct. 7.
Total quarterly sales were $2.26 billion, a decrease of 1.4% from net sales of $2.3 billion in the comparable quarter the previous year. The year-over-year decrease reflected sales declines in the wholesale and retail segments, which were unfavorably impacted by a reduction in volume, partially offset by higher pricing from inflationary trends, company officials said.
Net earnings were $11.1 million, or $0.32 per diluted share, compared to net earnings of $9.5 million, or $0.26 per diluted share in the prior year quarter. Adjusted earnings from continuing operations for the third quarter were $18.8 million, or $0.54 per diluted share, compared to $20 million, or $0.55 per diluted share in the prior year quarter.
"We continue to make tremendous progress on our plan, growing share and executing on our transformational initiatives despite the ongoing headwinds facing our industry," said SpartanNash President and CEO Tony Sarsam. "Our team is capturing savings, actively collaborating with the supplier community, and delivering reliable services to our wholesale customers and retail shoppers. With the success of Our Winning Recipe, we are energized by the opportunities ahead to further capture share, drive results and grow sustainable value for shareholders."
Net sales in the company’s wholesale division decreased $27.9 million, or 1.7%, to $1.60 billion from $1.63 billion in the prior year quarter. The decline in net sales was due primarily to marketplace demand changes from a certain national account customer.
In the retail division, net sales decreased $4.4 million, or 0.7%, to $662.2 million from $666.6 million in the prior year quarter. Retail comparable store sales grew 1.2% for the quarter, due primarily to the inflationary impact on pricing. Additionally, lower fuel sales in the quarter reduced reported net sales by 0.8%.
SpartanNash also updated guidance for fiscal year 2024. Total net sales are now expected to be between $9.65 billion and $9.85 billion. Previous guidance called for full year revenue of between $9.65 billion and $9.950 billion.
Grand Rapids, Mich.-based SpartanNash operates two complementary business segments – food wholesale and grocery retail. Its global supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. On the retail side, SpartanNash operates 144 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin's Super Markets and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers. The company is No. 41 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America.
This article first appeared on the site of sister publication Store Brands.
