SUPERVALU’s 1Q18 top line grows 6.3%
SUPERVALU’s (SVU) fiscal 1Q18 sales rose 6.3% YoY (year-over-year) to $2.9 billion, beating analysts’ consensus estimate by $10 million.
SVU’s sales growth was driven by a 12.4% rise in its wholesale business revenue, which accounted for ~64% of its total sales during the quarter. The company’s wholesale revenue growth was driven by new customer sales and a rise in sales to new stores operated by existing customers.
Mark Gross, SUPERVALU’s president and CEO, said, “The results generated this quarter by our Wholesale business were outstanding and demonstrate our ability to deliver on our strategy and commitment toward growing this segment.”
The company’s retail sales, however, fell for the eighth consecutive quarter. Sales fell 2.7% YoY to $1.4 billion with identical store sales becoming negative once again. Sales comps stood at -4.9% during the quarter.
ETF investors seeking to add exposure to SVU can consider the WisdomTree SmallCap Earnings ETF (EES), which invests 0.44% of its portfolio in the company.
Kroger’s (KR), America’s largest supermarket, reported a 4.9% YoY rise in its quarterly sales to $36.3 billion when it reported its results in mid-June. The company did better than Wall Street analysts had expected.
Whole Foods Market (WFM) reported its results a day after SVU. The organic retailer reported a 0.5% YoY rise in its total sales to $3.7 billion, in line with the consensus estimate.
Like SVU, the sales comps of both the food retailers mentioned above remained negative during the quarter.
Wholesaler United Natural Foods’ (UNFI) sales rose 11.3% to $2.4 billion when it reported its quarterly results in June. The company, however, fell short of consensus top line estimates. Read the next article to learn about SVU’s fiscal 1Q18 profitability.