US grocery retailer Supervalu swung into loss during the second quarter of fiscal 2011 and revised its full year guidance downwards, largely due to an impairment charge.
The company announced today (19 October) that for the quarter ended 11 September, it recorded a US$1.4bn net loss against a $74m profit in the same period last year.
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The company said that when adjusted for the non-cash goodwill and intangible asset impairment charges and certain other costs, second quarter fiscal 2011 net earnings were $59m.
For the quarter, sales reached $8.7bn, against $9.5bn during the same period of last year.
The company lowered its guidance for its 2011 fiscal year to earnings of between $1.40 per share and $1.60 per share, excluding non-cash charges. Previously, it had called for full year adjusted earnings in the range of $1.75 a share to $1.95 a share.
Chief executive Craig Herkert said: “It will take longer than originally anticipated to realise the benefit of the marketing, merchandising and operational initiatives that we continue to build upon. Accordingly, we are adjusting our guidance to better reflect this outlook.”
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By GlobalDataShares were down 8.87% to $11.30 at 10:09ET
For Supervalu’s full results announcement click here.
