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A Quick Look at SuperValu’s Fiscal 4Q18 Top Line

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SuperValu’s fiscal 4Q18 top line falls short of expectations

SuperValu’s (SVU) total sales from continuing operations grew 42.0% YoY (year-over-year) to ~$3.6 billion during fiscal 4Q18.[1. fiscal 4Q18 ended February 24, 2018] The company missed Wall Street expectations by $347.0 million.

In the most recent quarter, most of the increase in the company’s top line was driven by additional sales from the acquisition of Unified Grocers and Associated Grocers of Florida.

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“We finished fiscal 2018 strong with results in-line with our expectations after having made significant progress throughout the year with our ongoing wholesale business transformation. We’re pleased with our efforts to date to create a stronger company with more focused operations through the purchase of Unified Grocers and AG Florida,” said Mark Gross, president and CEO of SuperValu.

For fiscal 2018, the company’s total sales from continuing operations increased 30.0% YoY to ~$14.2 billion.

Wholesale acquisitions drive SVU’s top line

SuperValu’s wholesale sales surged 60.0% YoY to ~$2.9 billion during fiscal 4Q18. The majority of the increase—around $970.0 million or 90.0% of wholesale sales—was driven by the ongoing integration with Unified Grocers and Associated Grocers of Florida.

Retail comps turned positive in fiscal 4Q18

Retail sales tumbled for the 11th straight quarter, although the magnitude of the decline was relatively smaller this quarter. Retail sales from continuing operations fell 0.6% to $690.0 million, driven by lost sales from store closures. Sales comps, however, were positive for the first time in the last 12 months and increased 0.1%.

ETF investors seeking to add exposure to SVU can consider the PowerShares S&P SmallCap 600 Pure Value Portfolio ETF (RZV), which invests 0.5% of its portfolio in the company.

Read the final part of this series to learn about SuperValu’s fiscal 4Q18 profitability and margins.

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