SpartanNash Company (SPTN) reported adjusted earnings per share of 59 cents for the second quarter, exceeding analyst expectations of 56 cents. However, quarterly revenues came in at $2.23 billion, falling short of the consensus estimate of $2.27 billion. The decline in sales was primarily attributed to lower volumes in both the Wholesale and Retail segments.
The Wholesale segment experienced a 4.8% decrease in sales to $1.55 billion, largely due to reduced volumes in national accounts. The Retail segment’s sales dropped 0.4% to $676.1 million, with comparable store sales down 2.5%. This decline was partially offset by gains from newly acquired Metcalfe’s Market stores, but weaker consumer demand trends overall impacted performance.
Despite the sales shortfall, SpartanNash’s adjusted EBITDA reached $64.5 million, down slightly from $66.1 million in the previous quarter, excluding restructuring and asset impairment charges, the LIFO provision, and acquisition and integration expenses.
In response to the current market conditions, SpartanNash is implementing a Customer Value Proposition initiative. This program is designed to enhance freshness, value, and convenience for customers, drawing upon extensive shopper data and insights. As part of this initiative, the company is lowering prices on 6,000 products to provide greater value to shoppers.
SpartanNash has reaffirmed its full-year guidance for fiscal year 2024. The company projects total net sales between $9.50 billion and $9.70 billion, slightly higher than the previous estimate of $9.60 billion. Adjusted earnings per share are expected to range from $1.85 to $2.10, in line with the $2.02 estimate.
SPTN shares surged 7.3% to $20.98 in after-hours trading on Thursday, following the release of the earnings report.
